Chapter 8 Homework and Review Flashcards
Academic Competitiveness Grant
A grant for students graduating from a rigorous secondary school program of study. Rigorous secondary school programs are designated by stated education agencies and recognized by the secretary of education.
American Opportunity Tax Credit
Created by the American Recovery and Reinvestment Act of 2009. The new legislation increased the amount of the tax credit and provided other benefits. The AOTC provides a tax credit up to 2500 (2015) per student for the first four years of qualified educational expenses for post secondary education.
College Savings Plans (529 Savings Plan)
A plan that allows for college savings on a tax-deferred basis with attendance at any eligible education institution. Distributions from a College Savings Plan are federal and state income tax-free, as long as they are used to pay for qualified education expenses.
Coverdell Education Savings Account
A tax deferred trust or custodial account establish to pay for qualified higher education or qualified elementary/ secondary school expenses.
Education Funding
Determination of the lump sum or annual savings required to pay for college.
Employer Provided Education Assistance Program
A program established by an employer to reimburse employees for education expenses. The education expenses may or may not be directly related to the employee’s current job duties; it depends on the employer’s policy.
Federal Pell Grant
Need based financial aid for students who have not earned an undergraduate degree or a professional degree. A Pell Grant does not have to be repaid.. Pell Grants are awarded based on financial need.
Federal Perkins Loan
A program for undergraduate and graduate students with exceptional financial need. The Perkins Loan is a low insterest rate loan (5%), which is offered through a university’s financial aid office. The university serves as the leader and the federal government provides the funds.
Federal Supplemental Educational Opportunity Grant
A grant awarded to students with exceptional financial need. Pell Grant recipients with the lowest EFC are considered first for a FSEOG
Federal Work Study
Jobs on campus or off campus for undergraduate or graduate students to help students pay for their education expenses. To be eligible students must have financial need.
Fellowships
Paid to students for work, such as teaching while studying for a Master’s degree or conducting research while working towards a Doctorate of Philosophy degree (Ph.D.). Fellowships can last anywhere from a few weeks to a few years, depending on the depth and level of work involved.
Free Application for Federal Student Aid
A form used to determine a student’s eligibility for all types of financial aid, including grants, work study, and loans. The FAFSA is used to determine the Expected Family Contribution amount.
Graduate Plus Loans
Loans for student’s seeking graduate and profession degrees. A Graduate PLUS Loan is based on the parent’s credit history and is not based on financial need.
Grants
Money provided to students for postsecondary education that does not require repayment.
Lifetime Learning Credit
Provides a tax credit up to 2,000 (2015) per family for an unlimited number of years of qualified education expenses. The qualified education expenses must be related to a postsecondary degree program or to acquire or improve job skills.
National Science and Mathematics Access to Retain Talent Grant
A grant available during the third and fourth years of undergraduate studies. the National SMART Grant pays up to 4,000 per year and is paid in addition to Pell Grant.
PLUS Loans
Loans for parents to borrow to help pay for a dependent’s undergraduate education expenses. PLUS Loans are not based on financial need, but are instead based on the parent’s credit history.
Prepaid Tuition Plans
A plant that will allow a parent to purchase college credits today and use those credits when the child attends college.
Qualified Tuition Plans
A plan that allows for families to save for education expenses on a tax-deferred basis. Section 529 of the Internal Revenue Code authorized states to adopt qualified tuition plans. The two types of qualified tuition plans are prepaid tuition and college savings plans.
Scholarships
A grant of financial assistance made available to students assist with the payments of education related expenses. Scholarships are available for academic or athletic achievement. Scholarships can be provided to undergraduate or graduate students.
Stafford Loans
Student loans administered by the U.S. Department of Education
Teacher Education Assistance for College and Higher Education Grant
A grant that provides up to 4,000 per year for students who intend to teach in a public or private elementary, middle, or high school that serves a community of low income families.
Uniform Gift to Minors Act
Allows minors to own cash or securities. The UGMA/UTMA accounts are governed by state law that requires the custodian of the account, usually a parent or grandparent to manage the account for the benefit of the minor child.
Uniform Transfer to Minors Act
Allows minors to own cash, securities, and realestate. The UGMA/UTMA accounts are governed by state law that requires the custodian of the account, usually a parent or grandparent to manage the account for the benefit of the minor child.
U.S. Government Series EE and Series I Bonds
Bonds that can be redeemed to pay for qualified education expenses and the interest earned on the bonds is included in taxable income. For purposes of excluding interest income using U.S. Government savings bonds, qualified education expenses included tuition and fees, but do not include room and board.
