Financial Aid Vocabulary

DEMONSTRATED NEED

The difference between the total cost of attending college (including tuition, room and board, and other expenses) and the family’s calculated contribution (Estimated Family Contribution (EFC)) .

DIFFERENTIAL PACKAGING

Also called “Preferential Packaging,” the practice of awarding more desirable financial aid packages to stronger, more desirable students . For example, the total value of two aid packages might be the same, but the package offered to the stronger student might have more grant funds and lower loans .

FAFSA

Free Application for Federal Student Aid, used to apply for U .S . Government grants and loans, federal work-study, many state grants, and, for some schools, institutional financial aid . Every financial aid applicant must complete this form, available in October online .

FINANCIAL AID PACKAGE

Another term for financial aid award, it typically consists of grant(s), loan(s), and work .

FEDERAL METHODOLOGY

The need-analysis system used by the U .S . Department of Education to determine an applicant’s eligibility for federal financial aid . It is also used by some states and some colleges/universities .

GAPPING

The practice of meeting less than a student’s full need .

INSTITUTIONAL FINANCIAL AID

Financial assistance that comes directly from a college or university rather than the federal or state government or another “outside” organization .

INSTITUTIONAL METHODOLOGY

The need-analysis system used by colleges and universities to determine an applicant’s eligibility for institutional financial aid .

MERIT-BASED AID SCHOLARSHIPS

Grants, or other aid awarded based on academic strength, artistic ability, leadership, or other special talent .

NEED-BASED FINANCIAL AID

Financial aid that is awarded based on demonstrated financial need .

NEED BLIND ADMISSIONS

An admissions policy which does not use financial need as a factor in selecting applicants .

NEED-CONSCIOUS ADMISSIONS

An admissions policy that takes into account students’ financial need before making admissions decisions . Note: A school may be need-blind for one group of applicants and need-conscious for another group .

PREFERENTIAL PACKAGING

See Differential Packaging .

PROFILE

The College Scholarship Service (CSS) application required by many colleges/universities to apply for institutional aid . Complete this form only if the college/university to which you are applying requires it .

SAR

Student Aid Report, the report generated after the FAFSA is processed, showing the data that was entered on the FAFSA and the list of schools to which the data is to be sent .