Financial Aid Vocab

The Free Application for Federal Student Aid determines a student's financial aid. Apply online. Forms may be filed any time after October 1, of the year for which the student is seeking aid. October of the senior year will be the first opportunity for high school students to apply.

• FAFSA

• Estimated Family Contribution (EFC)

• Default

• Cost of Attendance:

Award Letter

• A letter from the college financial aid office that is sent to the student 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.

• This term applies to loans. It is the 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.

• Federally sponsored loan programs, which include the Stafford Loan and the Parent PLUS Loan (for parents of undergraduate students)

• The total financial aid a student receives. Federal and non-federal aid, such as grants, loans, work-study, and scholarships, are combined in a "package" to help meet the student's need.

This term applies to loans. It is the 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.

• Default

• Federal Direct Student Loan Program

• Financial Aid Package

• Financial Need

The student's cost of attendance includes tuition, fees, and a standard allocation designed to cover reasonable living expenses while attending school. The cost of attendance is determined by the school using guidelines established by federal regulations.

• Cost of Attendance

• FAFSA

• Gift Aid

• Grant

Estimated Family Contribution (EFC)

• The total amount students and their families are expected to pay toward college costs. This is determined from family and student income and assets for the prior year. The amount is derived from a need analysis of the family's financial circumstances.

• The Free Application for Federal Student Aid determines a student's financial aid. Apply online. Forms may be filed any time after October 1, of the year for which the student is seeking aid. October of the senior year will be the first opportunity for high school students to apply.

• Federally sponsored loan programs, which include the Stafford Loan and the Parent PLUS Loan (for parents of undergraduate students)

• The total financial aid a student receives. Federal and non-federal aid, such as grants, loans, work-study, and scholarships, are combined in a "package" to help meet the student's need.

Federally sponsored loan programs, which include the Stafford Loan and the Parent PLUS Loan (for parents of undergraduate students)

• Federal Direct Student Loan Program

• Interest

• Merit-Based Aid

• Need Analysis

Financial Aid Package

• The total financial aid a student receives. Federal and non-federal aid, such as grants, loans, work-study, and scholarships, are combined in a "package" to help meet the student's 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 that does not have to be paid back, such as scholarships and grants

• 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).

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 Need

• Estimated Family Contribution (EFC)

• Gift Aid

• Interest

Gift Aid

• Financial aid that does not have to be paid back, such as scholarships and grants

• 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.

• A process of reviewing a student's financial aid application to determine the amount of financial aid eligibility. Completing a need analysis form is the required first step in applying for most types of 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.

A type of financial aid award based on need or merit that does not require repayment

• Grant

• Interest

• Merit-Based Aid

• Need Analysis