You are reviewing a student's COA for the academic year because their financial aid awards exceed their COA Which of the following types of funds would contribute towards the student's annual budget?

You are reviewing a student's COA for the academic year because their financial aid awards exceed their COA Which of the following types of funds would contribute towards the student's annual budget?

• A. A Post-9/11 GI Bill
• B. B External scholarship funds
• C. C Qualified tuition program distributions (529 plan)
• D. D Federal Work-Study

Answer: (B)

The key idea is how different funds affect the amount available to cover education costs for the year. External scholarship funds come from outside the school and are treated as additional aid that can be used to pay for education costs included in the cost of attendance. They increase the funds available to cover COA items like tuition, fees, housing, and books, so they would contribute toward the student’s annual budget. The other options don’t add to the budget in the same way. Post-9/11 GI Bill benefits are typically applied directly to tuition and sometimes housing and are not treated as extra cash for the year’s budget. Distributions from a 529 plan are family-sourced and, while they can pay qualified expenses, aren’t considered external aid that increases the annual budget. Federal Work-Study provides earned wages rather than a grant of funds to cover costs, so it’s self-help income rather than additional budgeted aid.

The key idea is how different funds affect the amount available to cover education costs for the year. External scholarship funds come from outside the school and are treated as additional aid that can be used to pay for education costs included in the cost of attendance. They increase the funds available to cover COA items like tuition, fees, housing, and books, so they would contribute toward the student’s annual budget.

The other options don’t add to the budget in the same way. Post-9/11 GI Bill benefits are typically applied directly to tuition and sometimes housing and are not treated as extra cash for the year’s budget. Distributions from a 529 plan are family-sourced and, while they can pay qualified expenses, aren’t considered external aid that increases the annual budget. Federal Work-Study provides earned wages rather than a grant of funds to cover costs, so it’s self-help income rather than additional budgeted aid.