Question 1

Which of the following is a separate legal entity that holds assets in trust for a child until the child reaches age 21?

Accepted Answer

A)  Section 403(b) .
B)  Section 529(a) .
C)  Section 1185(b) Asset Trust.
D)  Section 2503(c) Minor's Trust.

Question 2

Which of the following higher education expenses does not qualify for the education savings bond program?

Accepted Answer

A)  Fees.
B)  Lab fees.
C)  Textbooks.
D)  Tuition. C

Question 3

Which of the following is a Non need-based Federal Student Aid Program?

Accepted Answer

A)  Direct subsidized loan.
B)  Federal Supplemental Educational Opportunity Grant (FSEOG) .
C)  Pell Grant.
D)  Teacher Education Access for College and Higher Education (TEACH) grant.

Question 4

Which of the following is a type of Prepaid Tuition Plan?

Accepted Answer

A)  Annuity plan.
B)  Contract Plan.
C)  Endowment plan.
D)  Trust plan.

Question 5

The maximum deductible amount of student loan interest is:

Accepted Answer

A)  $1,500 per tax return.
B)  $1,500 per student.
C)  $2,500 per tax return.
D)  $2,500 per student. C

Question 6

The expected family contribution takes into account:

Accepted Answer

A)  Family members who have attended school during the previous year.
B)  Family's taxed income only.
C)  Family's taxed and untaxed income.
D)  Family's untaxed income only. C

Question 7

All of the following statements about the lifetime learning credit is correct except:

Accepted Answer

A)  Available for graduate course work.
B)  Available for undergraduate course work.
C)  Credit may only be used for five years.
D)  Provides a tax credit for qualified education expenses.

Question 8

Which of the following programs is guaranteed to increase in value at the same rate college tuition increases?

Accepted Answer

A)  College Savings Plan.
B)  Prepaid Tuition Plan.
C)  Uniform Gifts to Minors Act.
D)  Uniform Transfers to Minors Act.

Exam 15: Education Planning Basics

Which of the following is a separate legal entity that holds assets in trust for a child until the child reaches age 21?

Correct Answer
verified

Which of the following higher education expenses does not qualify for the education savings bond program?

Correct Answer
verified
C

Which of the following is a Non need-based Federal Student Aid Program?

Correct Answer
verified

Which of the following is a type of Prepaid Tuition Plan?

Correct Answer
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The maximum deductible amount of student loan interest is:

Correct Answer
verified
C

The expected family contribution takes into account:

Correct Answer
verified
C

All of the following statements about the lifetime learning credit is correct except:

Correct Answer
verified

Which of the following programs is guaranteed to increase in value at the same rate college tuition increases?

Correct Answer
verified

Exam 15: Education Planning Basics

Which of the following is a separate legal entity that holds assets in trust for a child until the child reaches age 21?

Correct AnswerverifiedShow Answer

Which of the following higher education expenses does not qualify for the education savings bond program?

Correct AnswerverifiedC

Which of the following is a Non need-based Federal Student Aid Program?

Correct AnswerverifiedShow Answer

Which of the following is a type of Prepaid Tuition Plan?

Correct AnswerverifiedShow Answer

The maximum deductible amount of student loan interest is:

Correct AnswerverifiedC

The expected family contribution takes into account:

Correct AnswerverifiedC

All of the following statements about the lifetime learning credit is correct except:

Correct AnswerverifiedShow Answer

Which of the following programs is guaranteed to increase in value at the same rate college tuition increases?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
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C

Correct Answer
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C

Correct Answer
verified

Correct Answer
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