Question

Alphonse is attending college next year. He received this offer from a university. His parents told him they would pay for his room and board if he lives at home instead of in the dorms. He would only need to pay $2,000 for his car and insurance if he lives at home.
Financial Analysis for University
Costs per Year
Financial Aid Package per Year
Tuition & Fees
Scholarships & Grants
$10,500
$4,000
Room & Board
Work-Study
$11,500
$2,000

Which statements about the offer are true? Check all that apply.
The total cost per year is $22,000 if he lives in the dorm.
He would save $9,500 per year if he lives at home.
He would save $11,500 per year if he lives at home.
He has $6,500 in expenses that are not covered by financial aid if he lives at home.
He has $4,500 in expenses that are not covered by financial aid if he lives at home.
He will need to repay the $24,000 in scholarships, grants, and work-study money he receives during the four

Answer 1

True:
- The total cost per year is $22,000 if he lives in the dorm. (10,500 + 11,500 = 22,000)
- He would save $9,500 per year if he lives at home. (Avoid 11,500 room & board but add $2,000 car → 11,500 − 2,000 = 9,500)
- He has $6,500 in expenses that are not covered by financial aid if he lives at home. ((10,500 tuition + 2,000 car) − (4,000 scholarships + 2,000 work‑study) = 12,500 − 6,000 = 6,500)

False:
- He would save $11,500 per year if he lives at home. (Ignores the $2,000 car/insurance)
- He has $4,500 in expenses not covered if he lives at home. (Actual uncovered amount is $6,500)
- He will need to repay the $24,000 in scholarships, grants, and work‑study. (Scholarships/grants are not repaid; work‑study is earned income.)