B.15 Education funding Flashcards

A tax-advantaged investment account designed to pay for qualified education expenses, with a contribution limit of $2,000 per beneficiary per year.

Expenses that qualify for tax-free withdrawals from education savings plans, including tuition, fees, books, and sometimes room and board.

A type of 529 plan allowing contributors to purchase tuition credits at current rates for future use, typically limited to in-state public colleges.

Allows contributions to an investment account to grow tax-free, with withdrawals also tax-free if used for qualified education expenses.

A tax credit for qualified education expenses paid for an eligible student for the first four years of higher education, offering up to $2,500 per student.

A federal tax credit of up to $2,000 per household for qualified tuition and related expenses, available for any level of education.

Funding provided to students to help cover education costs, including grants, scholarships, loans, and work-study programs.

The amount a family is expected to contribute to a student’s education, calculated by a federal formula considering income, assets, and family size.

A form that students must complete to qualify for federal financial aid, including grants, loans, and work-study opportunities.

Financial awards given to students based on academic, athletic, or other achievements, often not requiring repayment.

Need-based financial aid that does not need to be repaid, such as the Federal Pell Grant for low-income students.

Borrowed money that must be repaid with interest, including federal loans like Direct Subsidized and Unsubsidized Loans and private loans from banks or other lenders.

A federal student aid program that provides part-time employment for students with financial need, helping them earn money to pay for education expenses.

Allows assets to be held in a custodial account for a minor’s benefit, which can be used for education but is not specifically designed for education funding.