College Savings

Prepaid Tuition

Government Bonds

Question $38$

Which is a characteristic of student loans?

Qualified student loan interest deduction consist of individuals being able to deduct up to $$2,500$ of interest expense per year

Qualified student loan interest deduction consist of individuals being able to deduct up to $$3,500$ of interest expense per year

It is extremely difficult to apply for loan forgiveness

None of the above

Question $39$

Frank is $47$ years old. He wants to use the distributions from his traditional IRA for education purposes. What may be

Any distribution will be included in taxable income.

II$.$ Frank will be subject to a $10\%$ additional tax.

III. No tax effect since he is using the funds for educational purposes.