Are you finding yourself confused by the various financial aid terms used by schools, applications and the details involved in the application process? If you’re feeling overwhelmed, rest assured that you are not alone. Many of our clients encounter similar challenges as they work to navigate the complexities of correctly applying with the FAFSA versus the CSS Profile, understanding grants and awards, and more. We understand the confusion you may be experiencing and are here to assist you in making sense of it all. Read on, and we will provide the guidance you need to navigate the intricacies of financial aid with confidence and clarity.
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 Loans, Federal Work Study, Federal Supplemental Educational Opportunity Grant, and loans are the 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 PROFILE – Financial aid application used by certain colleges and universities to assess a student’s eligibility for non-federal financial aid, such as institutional grants, scholarships, and need-based aid. Unlike the (FAFSA), which is required by all colleges and focuses on federal aid, the CSS Profile delves deeper into a family’s financial situation and considers factors not covered by the FAFSA. It requires more detailed information, including assets, home equity, and medical expenses, to provide a comprehensive view of the student’s financial need. The College Board administers the CSS Profile and may have its own deadline separate from the FAFSA.
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.
Student Aid Index (SAI) – An approximate 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.
FAFSA Free Application For Federal Student Aid
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 in the form of grants and scholarships offered by the government and colleges that do not require repayment. It is awarded to students based on various factors such as financial need, academic merit, extracurricular achievements, or specific criteria set by the funding organization. Gift aid is a valuable resource for students as it helps reduce the overall cost of education and does not need to be paid back, making it a beneficial component of the financial aid process.
Grants – Gift aid based on financial aid.
Federal Methodology – The standardized formula used by the U.S. Department of Education to calculate a student’s eligibility for federal financial aid programs. It is the methodology employed when completing the Free Application for Federal Student Aid (FAFSA). The Federal Methodology takes into account factors such as the family’s income, assets, and household size. Using this formula, the Student Aid Index (SAI) is determined, which helps determine the amount of federal financial aid a student may be eligible to receive. The Federal Methodology provides a consistent approach to assessing financial need and distributing federal aid across eligible students.
Institutional Methodology – Financial aid calculation methodology used by colleges and universities to determine a student’s eligibility for institutional (non-federal) financial aid. It is an alternative to the federal methodology used in the Free Application for Federal Student Aid (FAFSA). This amount is used to award financial aid from funds under the college’s control. The Institutional Methodology takes into account various factors, such as the family’s income, assets, and expenses, to assess the student’s financial need and determine the amount of aid they may receive from the institution. Each college or university may have its own specific formula and criteria when applying the Institutional Methodology in their financial aid calculations.
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 SAI or EFC. 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.
FSEOG—A Federal Supplemental Educational Opportunity Grant (FSEOG/SEOG) is a grant for undergraduate students with exceptional financial need. Each academic year, colleges receive a fixed amount of money to offer FSEOG awards. It is also sometimes referred to as SEOG.
PELL Grant– Through the PELL program, the federal government guarantees that the college will receive enough money to pay PELL to its eligible students.
Stafford Loan—This loan is awarded to students who are eligible for Federal Student Aid (most domestic students). You must also have an unmet financial need to receive a subsidized or unsubsidized Stafford Loan.
Ford Direct Loan – Education-based loans are available for undergraduates, graduates, and parents, and loan consolidation available to borrowers in all 50 states. These loans are usually considered the preferred option compared with private lenders due to their low, fixed interest rates and government benefits. Available as direct subsidized loans, direct unsubsidized loans, direct plus loans, and direct consolidated loans. offered through the Department of Education. Note these loans have limits on how much can be borrowed, require an origination fee, and have limited repayment options for graduate and parent PLUS borrowers.
Unmet Financial Need – The difference between the Cost of Attendance and the SAI or the EFC. This is the amount on which financial aid and loans are based
Coming Soon…
PLUS Loan
Unsubsidized Loan
Subsidized Loan
FAST
Need Blind
Test Blind
Need Aware
Need Analysis
Consensus Methodology
Early Decision
Early Action
Admission Office
Policies
Paying for College
SAI
College Board
Federal Work Study
Scholarships
Dept. of Education
Estimated Family Contribution
