2.

Isaiah grew up in a large home and always got whatever he wanted as his parents are both executives with Fortune 500 companies. Isaiahs parents are only willing to pay for his school if he attends Virginia University where his parents went to school. Isaiah wants to attend Stanford University in order to get as far away from his parents as possible. Which of the following loans would Isaiah or his parents potentially qualify for?

I Perkins loans

II Subsidized Stafford loans III Unsubsidized Stafford loans IV PLUS loans

		A.I and II only
		B.III and IV only
		C.I and III only
		D.I, II, III, and IV

3.

Jack and Pamela Martin earn $116,000 a year in income. They have saved a total of $90,000 in their savings account for their son Jareds college education, which will begin in three years. Considering Jareds short time horizon to begin college and the couples risk averse natures, how would you advise the Martins to save for Jareds college education this year?

A. Transfer the entire $90,000 to a Coverdell ESA this year.

B. Purchase Series EE savings bonds with the $90,000 and register the bonds in Jacks name.

C. Contribute $90,000 to an UTMA account for Jared.

D. None of the above.

4.

Jackson and Andrea paid $10,000 for their son Masons second year of college. Their AGI for the year is $200,000 and Masons AGI is $19,000 as he worked in the campus bookstore. Which of the following is the best option for them to claim the available education credits?

		A. Jackson and Andrea should claim the $2,000 Lifetime Learning Credit
		B. Jackson and Andrea should claim the $2,500 American Opportunity Tax Credit
		C. Mason should claim the $2,500 American Opportunity Tax Credit
		D. They are unable to claim either the Lifetime Learning Credit or the American Opportunity Tax Credit