Which of the following correctly pairs a financing option with its description?

a grants & scholarships – money you earn
b federal student loans – free money
c 529 plan – money you save
d federal work-study program – money you borrow

The answer is "C 529 Plan – Money you Save".

A 529 plan is a school investment funds plan that offers assess and monetary guide benefits. 529 plans may likewise be utilized to spare and put for K-12 educational cost notwithstanding school costs. There are two kinds of 529 plans: school investment funds designs and prepaid educational cost designs. Pretty much every state has something like one 529 arrangement. There is additionally a 529 arrangement worked by a gathering of private schools and colleges.

The option C is correct.

529 plan- money you save is a correct pair of financing options.  

Further Explanation:

Financing option:

The financing option means the money taken for a particular purpose. It can be expensive items or not. The individual makes a plan of purchasing the items. For education purposes, the students or their parents make a plan to finance the money for education.  

Justification for the correct and incorrect

A.

Grants & scholarship – money you earn: This option is incorrect.

Grants and scholarship is the money given by the government for the higher studies of the students. This is not the correct option, as the students do not earn the money.

B.

Federal student loans – free money: This option is incorrect.

Federal loans are provided by the government of the U.S. at a lower rate of interest. This is also known as educational loans. The students have to pay back the amount of loans after completing the studies.The federal student loan money is not free.  

B.

529 plan – money you save: This option is correct.

529 plan refers to a type of savings account in which the individual saves his money for the higher education of college. This is the correct match of financing option.  

D.

Federal work-study program – money you borrow: This option is incorrect.

The federal work-study program is a type of program in which the students do the job with their studies. The student does not borrow money.  

Learn more:

1.Learn more about the loans

2.Learn more about government

3.Learn more about financing costs

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Financial option

Keywords: financing option, description, grants & scholarship, money you earn, federal student loans, free money, 529 plan, money you save, work study program, money you borrow.