CEP Financial Aid and Scholarships 2

Question 1

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

Accepted Answer

Pell Grant

Answer

Federal Supplemental Educational Opportunity Grant (FSEOG)

Answer

TEACH Grant

Answer

Iraq and Afghanistan Service Grant

Question 2

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

Accepted Answer

It collects more detailed financial information for institutional aid decisions

Answer

It is used exclusively for federal aid programs

Answer

It replaces the FAFSA at private colleges

Answer

It is required only for graduate school applications

Question 3

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

Accepted Answer

Small business assets for businesses with fewer than 100 employees

Answer

Savings accounts

Answer

Investment real estate

Answer

529 college savings plans

Question 4

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

Accepted Answer

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

Answer

It is excluded as a primary residence

Answer

It is assessed at 20% as a student asset

Answer

It is not reported on the FAFSA

Question 5

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

Accepted Answer

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

Answer

The college confirms a student's acceptance decision

Answer

A student verifies their enrollment status each semester

Answer

The IRS confirms that tax returns were filed correctly

Question 6

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

Accepted Answer

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

Answer

Aid awarded based solely on family financial need

Answer

A federally funded loan program for high-achieving students

Answer

A grant requiring community service in exchange for funding

Question 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?

Accepted Answer

$15,000

Answer

$20,500

Answer

$17,000

Answer

$18,500