CEP Financial Aid and Scholarships 1 — Questions and Answers
Question 1: What is the primary purpose of the FAFSA?
- To apply for college admission.
- To determine course prerequisites.
- To calculate federal financial aid eligibility (Correct answer)
- To apply for campus housing.
Correct answer: To calculate federal financial aid eligibility
The FAFSA determines a student's eligibility for federal financial aid including grants, loans, and work-study opportunities.
Question 2: What is a merit-based scholarship?
- Based on financial need only.
- Randomly assigned to applicants.
- Based on achievements and talents (Correct answer)
- Given after the first year only.
Correct answer: Based on achievements and talents
Merit-based scholarships are awarded based on academic, artistic, athletic, or other achievements, not financial need.
Question 3: What does the Expected Family Contribution (EFC) indicate?
- Tuition for one semester.
- How much the family is expected to pay (Correct answer)
- Student’s GPA requirement.
- Loan repayment period.
Correct answer: How much the family is expected to pay
The EFC estimates how much a family can contribute toward a student’s education, influencing aid eligibility.
Question 4: Why is it important to meet financial aid deadlines?
- To get early registration for classes.
- To avoid delays in graduation.
- To ensure full consideration for financial aid (Correct answer)
- To secure on-campus jobs only.
Correct answer: To ensure full consideration for financial aid
Missing deadlines can result in loss of financial aid eligibility or reduced funding availability.
Question 5: What is a Pell Grant?
- A type of student loan.
- A merit-based award.
- A federal grant for low-income students (Correct answer)
- An internship program.
Correct answer: A federal grant for low-income students
The Pell Grant is a need-based federal grant that does not require repayment and supports low-income undergraduate students.
Question 6: What type of aid must be repaid with interest?
- Scholarships.
- Grants.
- Student loans (Correct answer)
- Work-study earnings.
Correct answer: Student loans
Federal and private student loans must be repaid, typically with interest over time.
Question 7: What is a private scholarship?
- Only given by federal agencies.
- Given to transfer students only.
- Funded by private groups or organizations (Correct answer)
- Part of student loans.
Correct answer: Funded by private groups or organizations
Private scholarships are awarded by organizations outside the government and colleges, often based on various criteria like background, interest, or performance.
Question 8: What is work-study?
- A full-time job requirement for all students.
- A part-time employment program for students with need (Correct answer)
- A volunteer opportunity.
- A requirement for Pell Grant.
Correct answer: A part-time employment program for students with need
Work-study provides part-time jobs for students with financial need, allowing them to earn money for educational expenses.
Question 9: What should students consider when comparing financial aid packages?
- The most expensive school is best.
- Only the amount of loans.
- Gift aid, loan amounts, and overall cost of attendance (Correct answer)
- Whichever college has the best dining hall.
Correct answer: Gift aid, loan amounts, and overall cost of attendance
Students should compare the total cost, gift aid vs loans, and any conditions attached to scholarships or aid.
CEP Financial Aid and Scholarships 1
What is the primary purpose of the FAFSA?