Financial Aid Vocabulary

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

• Student Aid Report
• Financial Aid Package
• Award Letter
• Gift Aid

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. 

• Estimated Family Contribution (EFC)
• Cost of Attendance
• FAFSA
• Financial Need

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. 

• Default
• Interest
• Need Analysis
• Financial Need

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.

• Federal Direct Student Loan Program
• Estimated Family Contribution (EFC)
• Financial Aid Package
• Student Aid Report (SAR)

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. 

• Federal Direct Student Loan Program
• Financial Aid Package
• Student Aid Report (SAR)
• FAFSA

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

• Federal Direct Student Loan Program
• FAFSA
• Merit-Based Aid
• Need Analysis

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.

• Gift Aid
• Student Aid Report (SAR)
• Financial Aid Package 
• Estimated Family Contribution

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. 

• Gift Aid
• Interest
• Merit-Based Aid
• Financial Need

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

• Grant
• Gift Aid
• Need-Based Financial Aid
• Work Study

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

• Merit-Based Aid 
• Gift Aid
• Work Study
• Grant