Means-tested college aid,base college aid primarily on
A)a student's abilities,and create an incentive to save.
B)a student's abilities but create a disincentive to save.
C)the current interest rate and are an incentive to save.
D)the current interest rate and are a disincentive to save.

Question

Quizplus · Accepted Answer

Means-tested college aid base college aid primarily on a student's abilities but create a disincentive to save. This is because the aid is usually given to students from low-income families with limited financial resources. If a family saves money for college, the student may be considered less needy and may receive less aid. Therefore, there is a disincentive to save if the family wants to qualify for more aid.

Means-Tested College Aid,base College Aid Primarily on