1. When your kids are young, the most heavily weighted investment in their college savings portfolios should be:
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Bonds
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Stocks
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Annuities
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Money market funds
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2. Your retirement savings:
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Will lower the amount of financial aid your child may receive
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Should be put off until you're sure you have enough to pay college tuition
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Should be your top financial priority, even if you don't have much in college savings
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3. If you open a 529 college savings plan, you won't be able to:
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Contribute more than $ 2,000 a year for your child's education
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Get state and federal tax breaks on your investments
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Be guaranteed a specific rate of return on your investment
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4. The HOPE credit is:
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A tax deduction that can be taken up to five years after your child finishes college
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A credit card marketed exclusively to full-time college students
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A tax credit that parents can take during their child's first two years of college
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A tax credit that can be taken the same year as the Lifetime Learning Credit
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5. If you're married and filing jointly, to qualify for the HOPE and Lifetime Learning credits, your adjusted gross income must be:
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Less than $ 35,000
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Less than $ 50,000
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Less than $ 80,000
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Less than $ 100,002
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6. If you make 48 consecutive on-time payments on a student loan, most private lenders will:
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Forgive the rest of your interest payments
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Take two percentage points off your interest payments
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Send you a useless chachka with their logo as a bonus for good behavior.
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7. If you opt to consolidate your student loans:
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Your interest rate will not exceed 8.25 percent on the whole package
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You may substantially increase the total amount of interest you pay
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You may end up paying the debt back over 30 years
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All of the above
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8. All these are forms of federal financial aid except:
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Pell grants
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Perkins loans
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Excel loans
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Supplemental Educational Opportunity grants
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9. Federal Perkins loans are offered to students based on:
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Financial need
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Good grades
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Good grades and financial need
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Razor-sharp wit and athletic prowess
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10. What's one main difference between the subsidized and unsubsidized Stafford loan?
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One is based on need; the other isn't.
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One has a fixed interest rate; the other has a variable rate.
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One helps pay for tuition; the other for room, board and other sundry costs.
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