Financial Aid Glossary

A letter from the college financial aid office that is sent to the student listing all financial aid awarded to the student. They may vary among institutions, but they generally list the expected family contribution, cost of attendance, and the terms of the aid awarded.

• Award Letter
• FAFSA
• Grant
• Need Analysis

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

• Award Letter
• Gift Aid
• Estimated Family Contribution (EFC)
• Cost of Attendance

This term applies to loans. It is the failure to repay a student loan according to the terms of the loan. It will lead, to 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.

• Gift Aid
• Default
• Grant
• Interest

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.

• Merit-Based Aid
• FAFSA
• Gift Aid
• Estimated Family Contribution (EFC)

The Free Application for Federal Student Aid determines a student’s financial aid. October of the senior year will be the first opportunity for high school students to apply.

• Financial Need
• FAFSA
• Financial Aid Package
• Gift Aid

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

• FAFSA
• Financial Aid Package
• Financial Need
• Federal Direct Student Loan Program

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.

• Financial Aid Package
• Estimated Family Contribution (EFC)
• FAFSA
• Interest

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
• Financial Aid Package
• Gift Aid
• Need-Based Aid

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

• Grant
• FAFSA
• Work-Study
• Gift Aid

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

• Gift Aid
• FAFSA
• Grant
• Student Aid Report