Speak the Language: Financial Assistance
Taken from College Greenlight
When it comes to money, you don’t need any misunderstandings. To help you navigate the waters of paying for college, here is a list of commonly used terms and what they mean.
When it comes to money, you don’t need any misunderstandings. To help you navigate the waters of paying for college, here is a list of commonly used terms and what they mean.
Award Letter: Official notification of the type and amount
of financial aid a college is offering you.
Demonstrated Need: The difference between what your family
can contribute toward college expenses and the actual cost of attending
college.
Expected Family Contribution (EFC): How much money you and
your family are expected to contribute toward college expenses. EFC is based on
your FAFSA application and a calculation by the federal government.
Free Application for Federal Student Aid (FAFSA): The
federal application every student must submit in order to be eligible for
federal financial aid. For more information and to complete the FAFSA visit
fafsa.ed.gov.
Grants: Money for college that does not have to be repaid.
Most grants are need-based and are awarded by the state or federal government.
Institutional Aid (or Campus-Based Aid): Financial
assistance given by a college, typically either need-based or merit-based aid.
Loans: Money given to a student that must be paid back.
There are several types of loans, including low to zero-interest loans given
out by the federal government, like the Perkins and Stafford loans. These are
the best options, since you don’t have to pay back the money until you
graduate. Private loans, offered through banks and credit unions, typically
have higher interest rates
Merit Aid: Financial aid awarded to you from a college based
on your individual achievements and talents. For a full listing of what’s
available, visit MeritAid.com.
Need-Based Aid: Financial aid given based on the ability of
you and your family to pay for college.
Scholarship: Money for college that does not have to be paid
back. Usually awarded based on specific criteria, such as your academic
performance, extracurricular activities, college major, ethnic heritage or
religious affiliation. Colleges, private groups or states may award
scholarships.
Student Aid Report (SAR): After you file the Free
Application for Federal Student Aid (FAFSA), you will receive a SAR stating
your EFC (expected family contribution) and eligibility for financial aid. This
report is also sent to the colleges you indicate on the FAFSA.
Student Loan: Financial aid that must be repaid. Student
loan programs are available through the federal government and private lenders.
Work-Study: Financial aid given in exchange for work
(typically at a job on campus). To qualify for the Federal Work Study (FWS)
program, you must complete the FAFSA.
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College Greenlight Fit Fact: There is more than $11 billion in merit scholarships available to students. Many of these scholarships are renewable each year. Go to MeritAid.com and CollegeGreenlight.com today, and find out which scholarships fit you before you apply.
**Be sure to fill out this short quiz to earn College Knowledge points!!**
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College Greenlight Fit Fact: There is more than $11 billion in merit scholarships available to students. Many of these scholarships are renewable each year. Go to MeritAid.com and CollegeGreenlight.com today, and find out which scholarships fit you before you apply.
**Be sure to fill out this short quiz to earn College Knowledge points!!**
