Chapter 8:Education & Educational Funding

Grants and Loans

100

Which grant/loan does not require a repayment plan?

A grant

200

Which loan is provided by a bank or lender?

A Federal Family Education Loan (FFEL)

300

This loan is for students graduating from a rigorous secondary school.

Academic Competitiveness Grant

Repayment Options

100

What type of loan has a six month grace period?

Stafford Loans

200

How long is a standard repayment plan?

10 years

300

What loan has an interest rate of the weighted average of combined loans?

Consolidated loan

Tax-Exempt Funding

100

What is the most common tax-deferred savings vehicle?

529 Savings Account/Plan

200

What type of educational plan is regulated by the state?

Prepaid Tuition Plans

300

The ESA is taxed when what happens?

The distribution exceeds the amount of the qualified educational expenses.

Tax Implications

100

What's the maximum amount of interest you can deduct from a student loan

$2,500

200

What are two unqualified education expenses on a student loan?

Room and Board

Insurance

Student Health

Transportation

300

What is the deduction limit of credit card loans?

$10,000-$15,000