Instructions: Read the Paragraph Below and Then Answer the Question(s)

question 1160

Multiple Choice

Instructions: Read the paragraph below and then answer the question(s) that follow(s) by choosing the letter of the correct response. Students who do not have the money to pay for some or all of their college expenses can apply for various forms of financial aid. Obtaining the funds for tuition, books, and even living expenses begins with filling out the Free Application for Federal Student Aid (FAFSA) . The fastest way to fill out this form is to complete it online at www.fafsa.gov , but students can also fill out and mail in a paper version of the form. This form asks for information about students financial situation and requires them to answer questions about their taxable and untaxed income and their assets, such as savings account balances and investments. If students are considered dependent on their parents, their parents financial information is also required. After students submit their FAFSA forms, those forms are processed, and students receive a Student Aid Report. A report is also sent to the colleges the student identified on the FAFSA. Each college uses the information it receives to calculate the amount of aid the student can receive; then, the college generates an award letter for the student. This application process must be completed every year a student is enrolled in school and needs financial aid. The subject of this paragraph is

• A) applying for financial aid.
• B) the high cost of attending college.
• C) types of financial aid.

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Definitions:

Compounded Annually

Involves the calculation and addition of interest to the principal sum of a loan or deposit once every year.

Compounded Quarterly

A method where interest is added to the principal every three months which allows interest to be earned on the previously accumulated interest.

Scholarships

Financial support awarded to students based on academic or other achievements to help fund their education.

Trust Fund

A fund comprised of a variety of assets intended to provide benefits to an individual or organization, managed by a trustee.