Colleges Financial Aid & Scholarships

Question 1

What is the Expected Family Contribution (EFC) now called under the FAFSA Simplification Act?

Accepted Answer

Student Aid Index (SAI)

Answer

The FAFSA Simplification Act replaced the term EFC with Student Aid Index (SAI) starting with the 2024–25 award year.

Question 2

What is a Pell Grant?

Accepted Answer

A federal grant for undergraduates with exceptional financial need

Answer

The Pell Grant is a federal need-based grant available to eligible undergraduates that does not need to be repaid.

Question 3

What is the maximum annual Pell Grant award for 2024–25?

Accepted Answer

$7,395

Answer

For the 2024–25 academic year, the maximum Federal Pell Grant award is $7,395 per year.

Question 4

What is a subsidized student loan?

Accepted Answer

A federal loan where the government pays interest while the student is in school

Answer

With subsidized loans, the US Department of Education pays the interest that accrues while the borrower is enrolled at least half-time.

Question 5

What is a 529 college savings plan?

Accepted Answer

A tax-advantaged savings account for education expenses

Answer

A 529 plan is a state-sponsored investment account that grows tax-free when funds are used for qualified education expenses.

Colleges Practice Test