FINANCIAL AID GLOSSARY E X P E C T E D F A M I LY C O N T R I B U T I O N ( E F C )
MERIT-BASED AID
EFC is calculated using the information you submit in your FAFSA. EFC determines how much federal student aid you are eligible for and is reported to you on your Student Aid Report (SAR).
Financial aid that is awarded based on academic, leadership or
FREE APPLICATION F OR FEDER AL ST UDENT AID (FAF SA )
The FAFSA is administered by the U.S. Department of Education. You must fill this out annually so the federal government can determine your eligibility for federal student aid and communicate this information to the schools you include in your application. We encourage ALL students to submit the FAFSA as soon as it is available (October 1). F I N A N C I A L A I D AWA R D
N E E D A N A LY S I S
A process of reviewing a student’s FAFSA to determine the amount of financial aid eligibility. NEED-BASED FINANCIAL AID
Financial aid that is awarded based on your financial circumstances. Need-based aid can be awarded in the form of grants, loans or Work Study.
A notification from a college or university that details your federal, state and institutional (school-specific) financial aid. If you have reported outside scholarships you’ve received to the institution, these might also be included.
Scholarships are funds you receive usually based on academic merit (GPA or test scores). You do not have to repay these funds.
FINANCIAL NEED
SUBSIDIZED LOAN
Your total cost of attendance minus your EFC. GIFT AID
Financial aid that doesn’t have to be paid back (scholarships and grants). GRANTS
Grants are funds you receive based on your academic record, FAFSA or ORSAA, and state residency. You do not have to repay these funds. Grant eligibility and/or amounts can change each year based on your EFC or enrollment (full-time or part-time) according to your FAFSA or ORSAA. INTEREST
Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt. Interest is calculated as a percentage of the outstanding (unpaid) pricipal balance of a loan. LOANS
Federal student loans are low-interest loans that require repayment after you are no longer enrolled in college. Federal student loans offer a variety of repayment plans to incorporate into your shortand long-term financial goals. Private loans are also an option, but typically have higher interest rates and fewer repayment options. L O A N F E E ( O R I G I N AT I O N F E E )
A fee charged for each federal student loan you receive that is a percentage of the total loan amount you’re borrowing. The loan fee is deducted proprotionately from each disbursement of your loan.
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artistic talent, or other criteria. Merit-based aid may consider a student’s grades, test scores, special talents, or extracurricular activities to determine eligibility.
SCHOL ARSHIPS
A federal student loan for which a borrower is not responsible for paying the interest while in school, or in a grace or deferment period. The federal government pays the interest for Subsidized Loans while you are in college or while the loan is in deferment. STUDENT AID REPORT (SAR)
A summary of the information you submit on your FAFSA, including your EFC. After you submit your FAFSA, you’ll get a Student Aid Report that summarizes the information you provided on your application. It’s a paper or electronic document that gives you basic information about your eligibility for federal financial aid. It also lists the answers you gave on your FAFSA. TA X R E C O R D T R A N S C R I P T
A form from the Internal Revenue Service (IRS) that is a record of processed tax forms submitted. UNSUBSIDIZED LOAN
A federal student loan for which a borrower is responsible for any interest the loan accrues while in school, or in a grace or deferment period. Interest begins accruing for unsubsidized loans as soon as the loan is taken out. WORK ST UDY
Federal Work Study funds are offered to students who qualify for it based on financial need. You can earn it if you are hired for a student job on campus that is designated as a Federal Work Study job. This can help offset your total cost of attendance. Federal Work Study funds are not guaranteed.
