Glossary Of Financial Aid Terms

CSS Financial Aid PROFILE - A supplemental financial aid form processed by The College Board. This form is used by many private colleges and universities to award institutional funds.

Education Tax Credit - A tax credit that can reduce an individual’s (or business’s) total tax burden on a dollar-for-dollar basis. Visit www.irs.gov for more information.

EFC - Expected Family Contribution - The amount of money that the family is expected to be able to contribute toward the student’s education. This amount is determined by applying the ‘federal methodology needs analysis’ (based on information submitted on the FAFSA form) as determined by Congress.

FAFSA - Free Application for Federal Student Aid - This form is used to apply for Pell Grants and all other need-based aid. As the name suggests, no fee is charged to file the FAFSA.

Gapping - Also called unmet need. A circumstance where a college or university does not, or cannot, make up the difference between the Expected Family Contribution (EFC) and the Cost of Attendance.

Grants - A type of financial aid based on financial need that the student does not have to repay.

SAR - Student Aid Report - A report that summarizes the information included in the FAFSA and is automatically provided by the government to your school’s financial aid office. You will typically receive your SAR four to six weeks after you file your FAFSA (or in a few days if you fill it out online).

Subsidized Loans - A loan where the government pays the interest on the loan while the student is in school, during the six-month grace period and during any deferment periods. Subsidized loans are awarded based on financial need and may not be used to finance the family contribution.

Unsubsidized Loans - A loan where the government does not pay the interest. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed - even while the student is in school.

Work-Study - A program that provides undergraduate students with part-time employment during the school year.