Paying for College Questions and
Answers Latest Update (2024/2025)
Graded A+
What is the Free Application for Federal Student Aid (FAFSA)?
✔✔The FAFSA is a form that students fill out to apply for federal financial aid, including grants,
loans, and work-study programs.
What is the primary purpose of a scholarship?
✔✔A scholarship is a form of financial aid that does not need to be repaid, typically awarded
based on academic performance, athletic skills, or other criteria.
What is a federal student loan?
✔✔A federal student loan is money borrowed from the U.S. government to help pay for college,
with terms and interest rates set by the federal government.
What is the difference between a grant and a loan?
✔✔A grant is financial aid that does not require repayment, while a loan is borrowed money that
must be repaid with interest.
1
, What is work-study?
✔✔Work-study is a federal financial aid program that provides part-time jobs for students with
financial need to help pay for their education.
What is a 529 plan?
✔✔A 529 plan is a tax-advantaged savings plan designed to help families save for future college
expenses.
What is the purpose of the Expected Family Contribution (EFC)?
✔✔The EFC is a measure used by colleges to determine a student's financial need, based on their
family's income and assets.
What is the difference between a subsidized and an unsubsidized federal student loan?
✔✔A subsidized loan does not accrue interest while the student is in school, whereas an
unsubsidized loan begins to accrue interest immediately.
What is a Pell Grant?
✔✔A Pell Grant is a type of federal financial aid for undergraduate students with exceptional
financial need, which does not need to be repaid.
2
Answers Latest Update (2024/2025)
Graded A+
What is the Free Application for Federal Student Aid (FAFSA)?
✔✔The FAFSA is a form that students fill out to apply for federal financial aid, including grants,
loans, and work-study programs.
What is the primary purpose of a scholarship?
✔✔A scholarship is a form of financial aid that does not need to be repaid, typically awarded
based on academic performance, athletic skills, or other criteria.
What is a federal student loan?
✔✔A federal student loan is money borrowed from the U.S. government to help pay for college,
with terms and interest rates set by the federal government.
What is the difference between a grant and a loan?
✔✔A grant is financial aid that does not require repayment, while a loan is borrowed money that
must be repaid with interest.
1
, What is work-study?
✔✔Work-study is a federal financial aid program that provides part-time jobs for students with
financial need to help pay for their education.
What is a 529 plan?
✔✔A 529 plan is a tax-advantaged savings plan designed to help families save for future college
expenses.
What is the purpose of the Expected Family Contribution (EFC)?
✔✔The EFC is a measure used by colleges to determine a student's financial need, based on their
family's income and assets.
What is the difference between a subsidized and an unsubsidized federal student loan?
✔✔A subsidized loan does not accrue interest while the student is in school, whereas an
unsubsidized loan begins to accrue interest immediately.
What is a Pell Grant?
✔✔A Pell Grant is a type of federal financial aid for undergraduate students with exceptional
financial need, which does not need to be repaid.
2
