Financial Aid Vocabulary
Award Letter
§ Notification of the terms and requirements of the financial aid package offered by a college.
College Scholarship Service (CSS) Profile
§ A financial aid application required by some schools in addition to the FAFSA.
Cooperative Education
§ A program that allows students to alternate college studies with salaried work experience off-campus.
Cost of Attendance (COA)
§ The annual cost of attending college that is used to determine a student’s financial need. It includes tuition, books, fees, room and board, transportation and out-of-pocket expenses. Also referred to as the student expense budget.
Dependent Student
§ An unmarried student under the age of 24 who has no dependents and who is at least partially dependent on parental support
Estimated Family Contribution (EFC)
§ The total amount a student and his or her family are expected to pay toward college costs from their income and assets.
Federal Methodology
§ A formula established by Congress that evaluates the expected family contribution to determine eligibility for all types of financial aid.
Federal Work-Study Program
§ A federally sponsored campus-based program that provides employment opportunities for students with demonstrated need.
Financial Aid Package
§ The total financial aid award offered to the student, which may include grants, scholarships, loans, and work-study.
Financial Need
§ The amount by which a student’s estimated family contribution falls short of covering the cost of attendance.
Free Application for Federal Student Aid (FAFSA)
§ A form distributed by the federal government for use by students applying for federal financial aid programs. May be mailed or filed electronically using FAFSA on the Web.
Gift Aid
§ Student financial aid, such as scholarships and grants, which does not have to be repaid and does not require a student’s being employed.
Grant
§ A financial award that does not have to be repaid.
Institutional Methodology
§ A formula used to determine eligibility for college money.
Loan
§ Money borrowed that must be paid back with interest.
Self-help Aid
§ Student financial aid, such as loans and federal work-study jobs, which require repayment or a student’s being employed.
Student Aid Report (SAR)
§ A report produced by the U.S. Department of Education and sent to students who have applied for federal student financial aid. It contains either a number called the expected family contribution or a request for further information.
Scholarship
§ Monetary award that does not have to be repaid.
Tuition Payment Plan
§ Alternative method of payment designed by colleges, bands, insurance companies and financial management organizations. Most offer either prepayment or installment options.