Confused by some of the financial aid language used by schools, applications and other hoops involved in the process. Read below and we will help make sense of it all.
Billable Costs – Those costs that are billed directly by the institution to the family. Billable costs include tuition and fees, as well as room and board for students living on campus housing and taking meals on campus. Billable costs are sometimes referred to as direct costs
Campus Based Programs – Federal Loan, Federal Work Study, Federal Supplemental Educational Opportunity Grants, and Perkins loans are the three kinds of federally funded financial aid programs that are administered by colleges and universities
Cost of Attendance – This figure is determined for each college by totaling the costs for tuition and fees, room and board, books and supplies, personal expenses and travel
CSS/Financial Aid PROFILE – A fully online data collection and need-analysis service required by many colleges, universities and private scholarship programs in addition to the FAFSA. CSS/PROFILE is used in awarding private financial aid funds. Students pay a fee to register for the CSS/PROFILE and have reports sent to institutions and programs that use it
Early Action – Programs that allow students to be notified early about their admission without obligating them to attend that college. Even if accepted, students are free to apply to other schools and to compare financial aid offers
Early Decision – Programs that bind the student to attend that college. Therefore the student cannot renege on their commitment unless they are not accepted
Expected Family Contribution (EFC) – The amount of money that a family is expected to contribute toward the student’s cost of attendance.
This number is the result of completing a FAFSA
Federal Methodology – The method used for calculating EFC based on the FAFSA
Federal Pell Grant – A Federally sponsored and administered program that provides grants based on exceptional need to undergraduate students. Congress annually sets the dollar range for grants
Financial Aid Award Letter – A notice from a college or other financial aid sponsor that tells the student how much aid is being offered. The award letter also usually explains how a student’s financial need was determined, describes the contents of the financial aid package, and outlines any conditions attached to the award
Gift Aid – Financial aid such as a grant or scholarship offered by the government and colleges
Grants – Gift aid based on financial aid
Institutional Methodology – Another method for calculating a family’s expected contribution based on the completion of a CSS/Financial Aid Profile. This amount is used for awarding financial aid from funds under the college’s control
Need Aware – Colleges that take financial need and its ability to satisfy it when making admission decisions
Need Blind – Colleges that make admission decisions without consideration of a family’s ability to pay or if they applied for financial aid
Non-Need Based Aid – Tuition discounts to attract certain students to a college
Professional Judgment – The authority of a school’s financial aid administrator to make adjustments to the data elements on the FAFSA, based on supporting facts and documentation. This authority is also regulated by governmental requirements and guidelines subject to strict compliance audits
Subsidized Loan – A need based Stafford loan on which the government pays the interest while the student is in college
Unsubsidized Loan – Non need based student loan on which interest accrues while the student is in college
Unmet Financial Need – The difference between the Cost of Attendance and the Expected Family Contribution. This is the amount on which financial aid and loans are based
Work Study – A federal program that provides campus based employment for those with the greatest financial need
FAFSA
Free Application For Federal Student Aid
Profile
CSS Profile
Gift-Aid
Loans
Grants
Pell Grant
SEOG
PLUS Loan
Perkins Loan
Stafford Loan
Ford Direct Loan
Unsubsidized Loan
Subsidize Loan
FAST
Need Blind
Test Blind
Need Aware
Need Analysis
Federal Methodology
Institutional Methodology
Consensus Methodology
Early Decision
Early Action
Admission Office
Policies
Paying for College
EFC
College Board
Federal Work Study
Scholarships
Dept. of Education
Expected Family Contribution
Estimated Family Contribution
Free Scholarship Sources