Which of the following is/are TRUE statement(s) regarding methodologies of college funding? _____ (1) The interest expense deduction on education loans is subject to phase-out based on modified adjusted gross income. _____ (2) The American Opportunity Credit is no longer limited to the first two years of post-secondary education, but is contains other limitations such as eligible expenses, and income. _____ (3) Scholarship monies for room and board are generally taxable to the recipient.
_____ (4) College cost inflation has historically outpaced the consumer price index.
_____ (5) Federal Perkins loans are needs-based. Select one: a. (1), (3) and (5) b. (1), (2), (4) and (5)
d. (1), (4) and (5) c. (2), (3) and (4)
e. All of the responses are true.
