Colleges Financial Aid & Scholarships 2

Question 1

What is a merit scholarship?

Accepted Answer

Financial aid awarded based on academic or extracurricular achievement

Answer

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?

Accepted Answer

Cost of Attendance

Answer

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?

Accepted Answer

Grants do not need to be repaid; loans must be repaid

Answer

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?

Accepted Answer

A federal loan available to parents of dependent undergraduates

Answer

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?

Accepted Answer

A process where the college confirms the accuracy of FAFSA information

Answer

Verification is a federally required process in which selected students must provide documentation to confirm the information reported on their FAFSA.

Colleges Practice Test

Colleges Practice Test

Colleges Financial Aid & Scholarships 2