Financial Aid Glossary Flashcards
Award Letter
A letter from the college financial aid office that is sent to the students 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
Cost of Attendance
The student’s cost of attendance include tuition, fees, and a standard allocation designed to cover reasonable living expenses while attending school. The cost of the attendance is determined by the school using guidelines established by federal regulations
Default
Applied to loans, it is a failure to repay a student loan according to the terms of the loan. If you default, your school, the organization that holds your loan, the state, and the federal government can all take action to recover the money. Including notifying national credit bureaus of your default
EFC - Estimated Family Contribution
Total amount students and their families are expected to pay toward college costs. Thus is determined from family and students income and assets for the prior year. The amount is derived from a need analysis of the family’s financial circumstances
Gift Aid
Financial aid that does not have to be paid back, such as scholarships and grants
Grant
A type of financial aid award based on need or merit that does not require repayment
Interest
A fee charged when you take out a loan. Interest is calculated as a percentage of the principal loan amount. The rate may be constant throughout the life of the loan (fixed rate) or it may change at specified times (variable rate)
Need-Based Financial Aid
Financial aid that is awarded based on a student’s financial circumstance. Need-based aid can be awarded in the form of grants, loans, or work study
Student Aid Report (SAR)
A form sent to the student after submitting the FAFSA. The SAR shows the information that was processed and indicates the Pell Grant eligibility
Work-Study
An opportunity for a student to work part-time and attend college. Work-study is designed to help students fund their college
Need Analysis
A process of reviewing a student’s financial and aid application to determine the amount of financial eligibility. Completing a need analysis form is the required first step in applying for the most types of financial aid
Merit-Based Aid
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
FAFSA
The Free Application for Federal Students Aid determines a student’s financial aid. Apply online at www.fafsa.gov. Forms may be filled any time after October 1, of the year which the student is seeking aid. October of the senior year will be the first opportunity for high school students to apply
Financial Need
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
Financial Aid Package
The total financial aid a student recieves. Federal and non-federal aid, such as grants, work-study, loans, and scholarship, are combined in a ‘package; to help meet the student’s need
