Unit 9: Financial Aid Flashcards
Cash grant for academic promise
Scholarship
Cash given for need, rather than for academic record
Grant
A student’s cost of attendance at a postsecondary institution includes: tuition and fees; room and board expenses while attending school; allowances for books and supplies (including a reasonable allowance for renting or purchasing a personal computer); transportation; loan fees for federal student loans (if applicable) ;dependent-care costs; costs related to a disability; and other miscellaneous expenses
Cost of Attendance (COA)
FAFSA forms become available in December of the senior year. All students applying for any federal financial aid must file this form as soon as possible after January 1. Analysis of the data on this form will determine eligibility for Pell Grants; Supplemental Educational Opportunity Grants (SEOG); Stafford Loans (subsidized and non-subsidized); Perkins Loans; work-study; and other federal and, in some cases, state programs
FAFSA (Free Application For Federal Student Aid)
Separate from the FAFSA, each college may have its own financial aid form which is used to help their financial aid offices determine a student’s eligibility for the institution’s own funds
CSS (College Scholarship Service) Profile™
Properly, the field of specialization of a college undergraduate. The student normally does from onequarter to one-third of his or her total undergraduate work in this major field
Major
A selective institution will set stiff requirements in terms of promise and demonstrated academic ability rather than simply in terms of specific courses taken. The degree of selectivity may vary from the college that accepts three out of four of its applicants to one which accepts only one out of eight
Selective College
A 529 plan is a tax-advantaged investment plan designed to encourage saving for the future higher education expenses of a designated beneficiary (typically one’s child or grandchild). The plans are named after Section 529 of the Internal Revenue Code and are administered by state agencies and organizations
529 College Savings Plan
A form that can be prepared annually by current and prospective college students (undergraduate and graduate) in the United States to determine their eligibility for student financial aid (including the Pell grants, and work-study programs)
Free Application for Federal Student Aid (FAFSA)
A financial plan used to forecast and track income and expenses
Budget
Use of finances to fulfil and one-time or ongoing obligation; expenses can be fixed or variable
Expense
A regular, predictable expense, such as a mortgage payment or rent
Fixed Expense
An expense or expense category that is not fixed and can’t be precisely predicted; budget planning is something used to limit or constrain variable expenses
Variable Expense
A payment or obligation owed to another person or an institution, such as credit card debt
Debt
A fee, often a percentage of principal, paid in exchange for borrowing money; also, funds earned on investments or on interest-bearing accounts
Interest
A financial holding that is purchased with the expectation of increased value; investments can be secured or unsecured, and the expected value of return on one’s investment is usually dependent on the degree of risk involved; money put aside for profit
Investment
Funds not spent and set aside, often on a regular basis, for later use
Savings
Outright gifts of money that are, often times, based upon need. Sometimes, however, they are awarded for academic excellence and promise or for special achievements or abilities.
Scholarships and Grants
Significant part of most financial aid packages. They must be repaid, but most often not until after you graduate. Interest rates are competitive with other types of loans. The payback period on college loans varies from two or three years up to 20 years.
Loans
A part-time job on campus. For instance, you might work in the library or as a resident advisor, lifeguard or food-service worker. Jobs are arranged through the financial aid office.
Work Study
interest paid or to be paid both on the principal and on accumulated unpaid interest
Compound interest
interest paid or figured on the original amount of a loan or on the amount of an account
Simple Interest
a sum of money that is placed to earn interest, is owed as a debt, or is used as a fund
pricipal
a mandated retirement system in the United States; originally a part of Roosevelt’s New Deal
Social Security
the providing of money or goods with the expectation of payment in the future
Credit
a record of your credit history that includes information about your identity, existing credit, public record, and inquiries about you
Credit Report
trustworthiness with money based on prior history; a general qualification for borrowing
Creditworthiness
Money from the earnings of a company that is distributed to people who have an ownership in that company
Dividend
Income that includes wages, salaries, and tips
Earned Income
the amount an employee earns
Gross Pay
the amount the employee receives after deductions (aka- take home pay)
Net Pay
a tax that provides benefits for retired workers and their dependents as well as for the disabled and their dependents. Also known as the “FICA” tax.
Social Security tax
