Paying for College & Financial Aid

Question 1

529 Savings Plan

Answer 1

A state sponsored investment plan with tax benefits that help families save money for college.

Question 2

Financial Aid

Answer 2

Money given or loaned to you to help you pay for college.

Question 3

Award Letter

Answer 3

Used to explain the types of financial aid a college is offering you.

Question 4

Grant

Answer 4

Financial aid that is a gift and does not need to be repaid, awarded based on financial need

Question 5

Merit Aid

Answer 5

also known as scholarships; do not need to be repaid; awarded based on merit (talents & abilities). Examples: skills, talents or good grades.

Question 6

Federal Student Loan

Answer 6

Money you borrow from the government, a bank or another source, that has to be repaid.

Question 7

Work-Study

Answer 7

A type of federal financial aid - a part time campus job only available to those who qualify based on financial need.

Question 8

FAFSA

Answer 8

Free Application for Federal Student Aid. It’s the first step to see if you qualify for scholarships, grants, loans etc. Used to determine your EFC (expected family contribution).

Question 9

EFC

Answer 9

EFC stands for Expected Family Contribution. This amount is used by states and colleges to determine your financial aid award, based on your family’s income reported on the FAFSA.

Question 10

FSA ID

Answer 10

FSA stands for Federal Student Aid. Creating an online FSA ID is the first step in the process for completing your FAFSA (application for federal student aid)

Question 11

Independent Student

Answer 11

An independent student is one of the following: at least 24 years old, married, a graduate or professional student, a veteran, a member of the armed forces, and a few other less common situations.