This 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. 

This term applies to loans. It is the failure to repay a student loan according to the terms of the loan. If failure to pay your student loan, 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. 

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 at www. fafsa.gov. Forms may be filed any time after October 1, of the year for which the student is seeking aid. January 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.

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

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).

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 this 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. It can be awarded in the form of grants, loans, or work-study. 

A form sent to the student after submitting the FAFSA. It shows the information that was processed and indicates Pell Grant eligibility. 

An opportunity for a student to work part-time and attend college. Work-study is designed to help students fund their college.