Some Helpful Definitions

I have talked to some people and a re-accuring theme that I have seen is a lack of knowledge of the definitions of some words. Here are some of the more important that you should know. First some more well known, then some lesser known

• FAFSA (Free Application for Federal Student Aid) - The need analysis document written by the U.S. Department of Education. This form is required for virtually all students seeking financial aid including the unsubsidized Stafford Loan.
• EFC (Expected Family Contribution) - The amount of money the family is expected to contribute for the year toward the student's cost of attendance. This figure is compared to the Cost of Attendance to determine a studen't aid eligibility.
• Profile Form - A need analysis form that is needed in addition to the FAFSA form which is administered by the College Board. It is much more detailed in the questions that it asks and some of the more prestige universities will require it if you are applying for aid. The form costs $5 to register for it and $18 per college that you are applying to, so make sure that you are serious about applying. Read the registration guide under the sidebar link under the College Board Guide link
• Self-Help - The portion of the aid package relating to student loans and/or work study.
• Work Study - A federally funded aid program that provides jobs for students. Eligibilty is based on need.
• Gift Aid - Financail aid, usually a grant or scholarship, that doesn't have to be paid back and that does not involve employment.
• ACT (American College Testing Program) - The administrator of a group of standardized tests in Englich. mathmatics, reading, science, and reasoning.
• COA (Cost of Attendance) - A figure, estimated by the school, that includes the cost of tuition, fees, room, board, books, and supplies as well as an allowance for transportation and personal expenses. The figure is compared to the EFC to determine a studen's aid eligibility.
• Perkins loan - Federally funded need-based program that provides low interest loansto undergraduate and graduate students and ins administered by school's financial aid office. In most cases, the aid dosn't have to be paid back until 9 months after the student graduates or leaves school. There are no interest charges while in school and fixed rate (currently) at 5% after school.
• Half-Time Status - Refers to students taking at least 6 credits per semester, or the equivalent.
• Pell Grant - Federally funded need-based grant program for first-time undergraduate students. Usually awarded to low income families. Typically if your EFC is $3000 or lower you have a shot at this money.
• PLUS Loans (Parent Loans For Undergraduate Students) - Federally subsidized educational loan program in which parents can borrow up to the total cost of attendance minus any financial aid received for each child in an undergraduate program. Eilgibilty is not based on need. The interest rate is variable, currently with a 9% cap.
• SSL (Stafford Student Loan) Program - Federally funded program provides low interet loans to undergraduate and graduate students and is administered by a bank of other lending institution, which can be the college itself. In most cases, repayment doesn't begin until 6 months after the student graduates or leaves school and there are no interest charges while in school. SUBSIDIZED Stafford Loans are need based and the government pays the interest while the student is in school. UNSUBSIDIZED Stafford Loans are non-need-based and can be taken out by virtually all students, In many cases, the student can elect to let the interest accumulate until after the graduate.