Sources of Aid: Federal & State Government, Federal or Private Campus-based Programs.
Base Year-The calendar tax year before the calendar year the student goes to college. This is usually the calendar year in which the student starts the high school senior year. Things the family does regarding income and assets in the base year will affect the outcome of the EFC.COA-Cost Of Attendance-consists of tuition, fees, books, supplies, room & board, transportation, computer, etc. DRN-Data Release Number-found in the upper right hand corner of the SAR. Colleges that were not on the original FAFSA list, but that you later want to consider, can use this number to electronically access your student's data to determine your student's financial need and award an aid package. EFC-Expected Family Contribution-sort of like your tax liability, but different. This is the amount the government expects you to contribute to you child's COA. However, sometimes you can end up having to pay more (see "Financial Need"). The EFC formula takes into account family size, age of older parent (the older the better-if you're single it's time to marry that old guy/gal that has been after you), income and assets of both parents and their student, etc. Endowments-private campus-based-free money from funds given to the college from private sources to help some students pay for tuition. Usually private colleges have these kinds of fund available, whereas the state colleges do not.Dean/Merit Scholarship-free money that is awarded based on GPA and SAT/ACT scores.FAFSA-Free Application for Federal Student Aid-over 90% go in with errors and get "bumped"! Almost all colleges require this form to be filed, in order to receive aid. Aid given is based on "Federal Methodology". Sometimes people also call it the FASFAFAP (CSS FAP)-College Scholarship Service Financial Aid Profile-FAFSA's evil but bigger twin. This application is not free. Some private colleges and scholarship programs require this form to be filed in addition to the FAFSA. First you register for the application and pay $5, then later you get the actual application so you can file it. (How's that for private bureaucracy beating out government bureaucracy?) The FAP application has to be consistent with information found on the FAFSA, but includes additional questions about assets, income, family status, business, etc. You'll be charged $18 for each college or university to which you want information sent. Aid given is usually based on "Institutional Methodology". A family's "EFC" could be higher under Institutional Methodology. Some colleges require an early filing-Nov or Dec of student's high school senior year. You have to find out if any of the colleges, universities, or scholarship programs you are considering require the FAP, and if so, when their priority filing date is.FDSL-Federal Direct Student Loan Program (government sponsored)-source of Stafford, or PLUS loans.FFEL-Federal Family Education Loans (privately sponsored)-competing source of Stafford, or PLUS loans.Financial Aid Award Letter-from the colleges of your choice. Based on the data from the SAR, the college shows you the expected COA. They then show you the financial aid package they are awarding, broken down into the EFC, and the Financial Need. It shows any grants, scholarships, and loans for which your student will be eligible. You can normally reply by accepting the whole package or only part of it.Financial Need-the difference between the Cost Of Attendance and the Expected Family Contribution. If the college doesn't fund the whole Financial Need, you have to make up the difference! AKA "Family Need", "Unmet Need".HERA-Higher Education Reauthorization Act-congress' tax code talents applied to the educational code; 400 pages of legalese!Jan 1st (of student's high school senior year)-first day you can file the FAFSA-bang, the gun is fired, the race for the money is on! First come first served! (Especially if your are not a low income family!)Pell Grant-Federal-free money, usually for families making less than $30,000.Perkins Loan-Federal campus-based-favorable terms, can borrow a little bit higher amounts than with the Stafford Loans, but there is still a limit. The government subsidizes (pays) the interest on loans while the student is going to college.PLUS Loans, Federal-Parent Loans for Undergraduate Students-loans parents can take out to pay their student's EFC or otherwise. There is no limit on how much you can borrow. They carry a higher interest rate than do the Stafford loans.SAR-Student Aid Report-the report the government sends you based on you correctly filing the FAFSA. It lets you know what your EFC is approved to be. This information will be released to the colleges of your choice.SEOG, Federal-Supplemental Educational Opportunity Grants-free money, usually for families with a very large need.SLS, Federal-Supplemental Loans to Students-for independent students (not dependent on their parents as determined by Dept. of Education rules)Stafford Loans, Federal-there is a low limit to how much can be borrowed. Must be at least a half-time student.
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Subsidized-low interest educational loans based on need. The government subsidizes (pays) the interest on loans while the student is going to college.
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Unsubsidized-low interest educational loans that do not take need into account and that do not get subsidized on the interest payments while the student is in college.
Tuition discounts, or remissions-campus-based-the college lowers it's price for a particular student so they can afford to go there. Work Study, Federal campus-based-student is granted a part-time job (usually on campus) to help pay for some of the cost of college. Pay received does not affect or lessen aid received. As opposed to a private job where the student may make more, but then he/she may receive less aid.
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