CEP Financial Aid and Scholarships 3

Question 1

What is the maximum annual subsidized Stafford loan amount for a dependent undergraduate freshman?

Accepted Answer

$3,500

Answer

Dependent freshmen can borrow a maximum of $3,500 in subsidized Stafford loans per academic year.

Question 2

Which federal loan program allows graduate students and parents of undergraduates to borrow up to the full cost of attendance?

Accepted Answer

Direct PLUS Loan

Answer

Direct PLUS Loans (Graduate PLUS and Parent PLUS) can cover the cost of attendance minus any other financial aid received.

Question 3

A student takes out a Direct Unsubsidized Loan. Interest begins accruing:

Accepted Answer

Immediately upon disbursement

Answer

Unlike subsidized loans, interest on unsubsidized loans begins accruing at the time of disbursement, even while the student is enrolled.

Question 4

The Expected Family Contribution (EFC) is now officially called what under the FAFSA Simplification Act?

Accepted Answer

Student Aid Index (SAI)

Answer

The FAFSA Simplification Act renamed the EFC to the Student Aid Index (SAI) to better reflect that it is not necessarily the amount a family will pay.

Question 5

When comparing financial aid offers, an educational planner should advise a family to calculate the 'net price' by:

Accepted Answer

Subtracting all grants and scholarships from the total cost of attendance

Answer

Net price equals the total cost of attendance minus all gift aid (grants and scholarships), representing what the family must actually fund.

(CEP) Certified Educational Planner Practice Test

(CEP) Certified Educational Planner Practice Test

CEP Financial Aid and Scholarships 3