General Principles

Question 1

When calculating the includible student and parent assets and income for the Expected Family Contribution (EFC), both parents and students are offered what kind of protection allowances between income and asset protection?

Answer 1

Income Protection Allowances
Asset Protection Allowances

Question 2

Financial aid availability and the Expected Family Contribution (EFC) have an ______ relationship.

Answer 2

inverse relationship

As the EFC increases, the available Financial Aid award decreases.

Question 3

An investor had a bad year in the market and lost 30% of their portfolio value. As a result they have decided to take on significantly more risk. What bias is this investor exhibiting?

Answer 3

break-evenitis.