Colleges Financial Aid & Scholarships 2 — Questions and Answers
Question 1: What is a merit scholarship?
- Financial aid awarded based on academic or extracurricular achievement (Correct answer)
- Aid given based solely on financial need
- A loan forgiven after public service
- A grant for first-generation college students only
Correct answer: Financial aid awarded based on academic or extracurricular achievement
Merit scholarships reward students for academic excellence, athletic ability, artistic talent, or other achievements regardless of financial need.
Question 2: What does COA stand for in college financial aid?
- Cost of Attendance (Correct answer)
- Certificate of Admission
- College Opportunity Award
- Cost of Application
Correct answer: Cost of Attendance
Cost of Attendance (COA) is the total estimated cost to attend a college for one year, including tuition, room, board, books, and personal expenses.
Question 3: What is the difference between a grant and a loan in financial aid?
- Grants do not need to be repaid; loans must be repaid (Correct answer)
- Grants are merit-based; loans are need-based
- Grants come from states; loans come from the federal government
- Grants are for graduate students; loans are for undergraduates
Correct answer: Grants do not need to be repaid; loans must be repaid
Grants are a form of gift aid that students keep without repayment, while loans are borrowed funds that must be repaid with interest.
Question 4: What is a Direct PLUS Loan?
- A federal loan available to parents of dependent undergraduates (Correct answer)
- A subsidized loan for first-year students
- A private loan from a bank
- A loan exclusively for graduate students
Correct answer: A federal loan available to parents of dependent undergraduates
Parent PLUS Loans are federal loans that parents of dependent undergraduate students can borrow to help pay education expenses, with repayment starting after funds are disbursed.
Question 5: What is verification in the FAFSA process?
- A process where the college confirms the accuracy of FAFSA information (Correct answer)
- A background check for scholarship applicants
- The step where students sign their master promissory note
- A review of high school transcripts by the financial aid office
Correct answer: A process where the college confirms the accuracy of FAFSA information
Verification is a federally required process in which selected students must provide documentation to confirm the information reported on their FAFSA.
Question 6: What is the National Merit Scholarship Program?
- A scholarship competition based on PSAT/NMSQT scores (Correct answer)
- A federal need-based grant program
- A state-funded scholarship for valedictorians
- A scholarship for first-generation college students
Correct answer: A scholarship competition based on PSAT/NMSQT scores
The National Merit Scholarship Program is a nationwide academic competition where students qualify based on their PSAT/NMSQT scores, with finalists competing for scholarships.
Colleges Financial Aid & Scholarships 2
What is a merit scholarship?