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Financial Aid and Scholarships Flashcards

7 cards from real CEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Aid and Scholarships flashcards as text

  1. A student's EFC on the FAFSA is $0. Which federal grant provides the maximum award to this student?

    Answer: Pell Grant

    The Pell Grant is the primary federal need-based grant, and an EFC of $0 qualifies a student for the maximum Pell award.

  2. What is the primary purpose of the CSS Profile compared to the FAFSA?

    Answer: It collects more detailed financial information for institutional aid decisions

    The CSS Profile gathers more comprehensive financial data—including home equity and non-custodial parent information—to help colleges determine their own institutional aid awards.

  3. Under the simplified needs test on the FAFSA, which asset is excluded from the calculation?

    Answer: Small business assets for businesses with fewer than 100 employees

    Small businesses with fewer than 100 full-time employees are excluded from FAFSA asset reporting under the simplified needs test.

  4. A parent owns a rental property worth $200,000. How does FAFSA treat this asset?

    Answer: It is assessed at up to 5.64% as a parent asset

    Investment real estate (excluding the primary home) is reported as a parent asset and assessed at no more than 5.64% in the federal aid formula.

  5. What does 'verification' mean in the federal financial aid process?

    Answer: The Department of Education or school checks FAFSA data accuracy against supporting documents

    Verification is the process by which a college reviews and confirms the accuracy of FAFSA information using documents such as tax transcripts and W-2s.

  6. Which of the following best describes a 'merit-based' scholarship?

    Answer: Aid awarded based on academic, athletic, or other non-need criteria

    Merit-based scholarships are awarded for achievements such as GPA, test scores, athletic talent, or leadership, independent of financial need.

  7. A college's financial aid award letter shows $15,000 in 'grants,' $3,500 in 'subsidized loans,' and $2,000 in 'work-study.' What is the student's true gift aid total?

    Answer: $15,000

    Gift aid includes only grants and scholarships; loans must be repaid and work-study requires employment, so only the $15,000 in grants is free money.