Financial Aid Terms

Question 1

FM

Answer 1

Federal methodology equals FAFSA application used to determine federal and state eligibility

Question 2

I M

Answer 2

Institutional methodology uses the CSS profile determines how much institutional funds the student is eligible for

Question 3

CSS Profile

Answer 3

Used by some private schools to determine how much institutional funds student is eligible for

Question 4

EFC

Answer 4

Expected family contribution equals how much money the family is expected to pay for college education

Question 5

Information used to calculate both the iamb and FM expected family contribution

Answer 5

• Parent and student income – taxes paid – interest income – untaxed income – child support paid or received – parent and student assets - number in family - # in college

Question 6

Assets not included in the FAFSA determination of EFC

Answer 6

1. Parents home equity in residence
2. retirement funds such as 401ks and Roth retirement funds
3. Family owned business with less than 100 employees
4. Family owned farmed that family lives on.

Question 7

Assets included in the CSS determination of EFC

Answer 7

Equity if the resident home, family owned business, family on the farm, value of retirement fund as requested but generally not used in the formula

Question 8

AGI

Answer 8

Adjusted gross income (?)

Question 9

Federal methodology calculates available income at about what percent of income?

Answer 9

22 -48% depending on allowances made for # of children, taxes paid, etc

Question 10

Assets include the following:

Answer 10

Cash, investments such as stocks bonds and mutual funds, real estate, land, trust funds, prepaid tuition plans, 529 savings plans, UTMAs and UGMA’s.

Question 11

How much can students earn before their income affects the EFC in the federal methodology?

Answer 11

$6000

Question 12

How much is a student expected to contribute of their own income after the allowance in the federal methodology?

Answer 12

50% of the students income after an allowance.

Question 13

How much of a student’s income does the IM formula expect the student to contribute to the EFC?

Answer 13

22 - 46% depending on parent income.

Question 14

Do student assets have an allowance and what is the percentage rate they are assessed at?

Answer 14

There is no allowance for student assets the I am formula expects students to contribute 20 to 25% of personal assets to the EFC and the FM formula expect students to contribute 20% of assets to the EFC.

Question 15

How does the number of children attending college affect the EFC calculation for the FM and the IM respectively?

Answer 15

The FM divides the EFC by the number of children.

THe IM divides the EFC by 60% for each child attending college.

Question 16

How should parents with shared custody complete the FM to determine EFC?

Answer 16

1. Parent w/ whom child lives the majority of the time.

2. If equal custody, choose parent who is primary financial support (check on this)

Question 17

SAR

Answer 17

Student Aid Report - report sent to student with federal and state financial aid information ?

Question 18

Acknowledgment form

Answer 18

similar to the student aid report sent by the FAFSA the acknowledgment form is sent to the student after submitting the CSS profile and contains the students financial information

Question 19

COA

Answer 19

Cost of attendance includes tuition, fees, room, bored, books and supplies, transportation, and living expenses note cost of attendance is based on a pretty spartan living style.

Question 20

EFC

Answer 20

Expected family contribution is the calculation that comes from the FAFSA or the CSS profile and is considered the amount of the family will be expected to contribute toward their child’s education for one year

Question 21

Need based financial aid

Answer 21

COA - EFC = eligibility