Answer these questions 1,2, and 3, and explain why the other options are not correct

Using your textbook and the lecture slides posted on Canvas, answer the following questions. In the space provided after most questions, briefly explain why the other options are not correct. 1. Which of the following statements concerning Stafford Loans is correct? a. b. c. d. Stafford loans are for undergraduate students, graduate students, and parents. A subsidized loan begins accruing interest from the time the funds are dispersed. Funds are provided by each state. Students with low income and large loan balances are only required to repay up to 10% of their income each year. 2. Mitch and Jennifer have AGI of $125,000 and have not planned for their children's education. Their children are age 17 and 18 and the parents anticipate paying $20,000 per year, per child for education expense. Which of the following is the most appropriate recommendation to pay for the children's education? a. Coverdell ESA b. 529 Savings Plan c. Pell Grant d. PLUS Loan Tan and Chia are contemplating making a contribution to their grandchildren's education fund. They are both retired, have a significant amount of discretionary income and are concerned about estate transfer taxes. Which of the following education planning techniques would you recommend? 3. a. Prepaid Tuition b. 529 Savings Plan c. Coverdell ESA d. UGMA or UTMA