Financial Aid Terms
This document from the college financial aid office is sent to students listing the expected family contribution, cost of attendance, grants/scholarships, and loan eligibility.
What is an "Award Letter"
Failure to repay a student loan according to the terms.
What is "Default"
This is a special savings account just for education and training.
What is a "529 acount?"
Bachelor's degree
A loan where the Federal governments pays interest while you are in school
What is "Subsidized Loan?"
This price includes tuition, fees, books, and a standard allocation designed to cover reasonable living expenses while attending school.
What is "Cost of Attendance"
When the cost of your educational program is more than your expected salary.
Negative ROI
A form sent to the student after submitting the FAFSA.
What is "Student Aid Report (SAR)"
A 2 year degree
What is "Associate's"
A loan available to parents of undergraduate students
What is a PLUS loan?
The form that determines a student’s financial aid.
What is a "FASFA"
An opportunity for a student to work part-time and attend college.
What is "Work Study"
Financial aid that is awarded based on a student’s financial situation.
What is "Need-based Financial Aid"
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. The FAFSA should be completed as soon as it becomes available on October 1.
This Federal loan is NOT based on financial need.
What is an "unsubsized loan?"
This is determined by subtracting the expected family contribution (EFC) from the total cost of attendance
What is "Financial Need"
This Federal grant is for students who show significant financial need
What is a "Pell Grant?"
The total amount students and their families are expected to pay toward college costs.
What is "Estimated Family Contribution (EFC)"
I am going to pay for college myself, so it doesn’t matter how much money my parents make.
Most need-based financial aid is based on parents’ income and assets. Most schools require students to fill out the Free Application for Federal Student Aid (FAFSA) in order to qualify for need-based aid. That form asks for parent’s income information.
These loans can accrue "Capitalized Interest."
Federal: Unsubsidized and PLUS loans
A type of financial aid based on need that does not require repayment
What is a "Grant"
This interest is added to the principal of the loan- thus making a student pay interest on interest.
What is "capitalized interest?"
Financial aid that is awarded based on a student’s academic, leadership, or artistic talent, or some other criteria.
What is "Merit-Based Aid"
My parent's immigration status will impact my ability to receive financial aid.
False- you can still submit the FAFSA regardless of your parent's immigration status.
These loans must be paid back immediately and require a cosigner
What is a "Private Loan?"