10. Your cousin is a junior in high school and she is thinking about applying for college and how to pay for it. She came to you for advice because she knew you went through the process and you are taking F260, which covers the topic of paying for college. You are glad to share with her your experience and the basics of financial aids. You want to let her know that there are potentially multiple sources of funds to pay for college, including some or all of the choices below.

Choose all that are correct.

Grants

Private student loan

Federal student loan

Savings

Scholarships

Work-study jobs

529 plan with her as beneficiary

11. After graduating, you got a job you like with a great company which offers 401(k) to all its employees. You maximized your contribution to the 401(k) plan. You also started an Indiana 529 plan with your nephew as the beneficiary because you want to help him pay for college in 15 years.

Both the 401(k) and 529 plan offer some great tax benefits.

You believe you can make pre-tax contributions to both the 401(k) and 529. True or false?

True

False