Financial Aid Basics
FAFSA stands for:
Free Application for Federal Student Aid
What is a financial aid award letter?
This financial aid offer from a college outlines grants, loans, and work-study eligibility
What is the U.S. Department of Education?
This government department oversees the FAFSA program
What are the four ways to pay for college?
Grants, Scholarships, Work Study, & Student Loans
What is dependent student status?
Means a student must report parent information on the FAFSA
What is an FSA ID?
This identification number is required to sign and submit your FAFSA online
What is the percentage charged on borrowed money for college?
It's called "interest rate"
It is the percentage charged on the money you borrow for college — the extra amount you have to pay back on top of the original loan.
What is the Student Aid Index (SAI)?
Refers to the student’s and family’s financial strength based on FAFSA information
What are the two types of Financial Aid applications?
FAFSA and CADAA (California Dream Act, for undocumented students)
What is the difference between these two federal student loans: Subsidized vs Unsubsidized?
Subsidized = The government pays the interest while you’re in school (at least half-time), during the grace period, and during certain deferments.
Unsubsidized = You are responsible for all the interest, starting from the moment the money is given to you.
How many units are required to receive Financial Aid?
You must take 12 or more units (~ 4 courses) for maximum eligibility + maintain "Satisfactory Academic Progress." (There is flexibility to not be full-time, however, financial aid disbursements could be lower)