Financial Aid Terms
A letter from the college financial aid office that is sent to the student listing all financial aid awarded to the student. Award letters vary among institutions, but they generally list the expected family contribution, cost of attendance, and the terms of the aid awarded.
What is an "Award Letter"
This month of the senior year will be the first opportunity for high school students to apply for their FAFSA.
What is "October"
My parents make too much money to qualify for any aid.
This is the biggest myth of all and the most dangerous. There are no income limitations on aid. While a family with significant income may not be eligible for need-based aid, there are dozens of strategies available to lower the cost of college.
The student’s this includes tuition, fees, and a standard allocation designed to cover reasonable living expenses while attending school. The cost of attendance is determined by the school using guidelines established by federal regulations.
What is "Cost of Attendance"
The report you receive that confirms your FAFSA has been processed & will include your Expected Family Contribution (EFC)
What is "Student Aid Report (SAR)"
A form sent to the student after submitting the FAFSA. The SAR shows the information that was processed and indicates Pell Grant eligibility.
What is "Student Aid Report (SAR)"
I can only get financial aid for cheaper / public colleges
Your financial aid offer will cover the difference between your EFC and the cost of attendance for your prospective college. That means that financial aid can help you afford even the most expensive college, if you are admitted.
Though often costlier, private schools may offer generous financial aid.
This form determines a student’s financial aid.
What is a "FASFA"
An opportunity for a student to work part-time and attend college to help students fund their college.
What is "Work Study"
Financial aid awarded based on a student’s financial circumstances.
What is "Need-based Financial Aid"
Needbased aid can be awarded in the form of grants, loans, or work-study
You can wait until you get accepted to a college before worrying about financial aid.
Most financial aid is distributed on a first-come, first-served basis. There are some scholarships that are available to juniors, so starting early may mean more money for college.
The amount by which your family’s contribution falls short of covering your college expenses. It is determined by subtracting the expected family contribution (EFC) from the total cost of attendance
What is "Financial Need"
Financial aid that does not have to be paid back, such as scholarships and grants
What is "Gift Aid"
The total amount students and their families are expected to pay toward college costs. This is determined from family and student income and assets for the prior year. The amount is derived from a need analysis of the family’s financial circumstances.
What is "Estimated Family Contribution (EFC)"
You can get more scholarships or financial aid for college by paying someone to search for you.
Beware of any group or individual that guarantees a scholarship or financial aid if you pay a fee. These groups utilize high-pressure tactics to get parents to pay for a service they don’t need.
A type of financial aid award based on need that does not require repayment
What is a "Grant"
The total financial aid a student receives. Federal and non-federal aid, such as grants, loans, work-study, and scholarships, are combined in a “package” to help meet the student’s need.
What is "Financial Aid Package"
Financial aid that is awarded based on a student’s academic, leadership, or artistic talent, or some other criteria. Merit-based aid may consider a student’s grades, test scores, special talents, or extracurricular activities to determine eligibility.
What is "Merit-Based Aid"
You have to be very poor, very smart, or uncommonly talented to qualify for financial aid.
Financial aid comes in many forms—grants and scholarships, which don’t have to be repaid, and loans, which do have to be repaid.