terms you should know
Terms You Should Know
by Howard Freedman
Copyright 2024 Financial Aid Consulting. All rights reserved. No portion of this article may be reproduced mechanically, electronically, by photocopying, or by any other means without expressed written permission of the author. Howard can be reached at finaidguy@gmail.com or 781-341-0234.
Here are some essential terms you should know.
The beginning of wisdom is the definition of terms.” ― Socrates
Award Letter
An official offer includes the cost of attendance, financial aid (scholarships, grants, loan work-study) awarded, and net cost. The award can be fully or partially accepted or rejected and appealed.
Conflicting Information
Consistent and accurate data reported on financial aid forms warrant further review and audit.
Cost of Attendance
The total projected annual costs of attending a college for the academic year. It includes all costs paid directly to the school as well as indirect costs such as personal expenses, books, and transportation.
Contributor
Anyone, including a spouse, biological or adoptive parent, or your parent’s spouse, is required to provide information, sign the FAFSA, and agree to have their tax information transferred.
CSS/Financial Aid Profile
An additional financial aid form was used by specific colleges to EFC (Expected Family Contribution) using a different institutional methodology for awarding financial aid from institutional versus federal funds.
Deferment
The period during which repayment of the principal and interest of your loan is temporarily delayed.
Early Action
An accelerated college application process in which students typically must complete their applications from the college before the new year. This is not binding, and students may apply to other colleges.
Early Decision
An admissions program that requires the student to sign a commitment to commit to a program earlier in the year. Colleges award financial aid at the time of admission but, depending on the college, may need more financial leverage to negotiate for more financial aid.
Enrollment Management
The term is used in higher education to describe well-planned strategies and tactics to shape an institution's enrollment and meet established goals.
FAFSA
Free Application for Federal Student Aid) is available each October for determining need-based financial aid. Federal Loan:
FSS (FAFSA Submission Summary)
A paper or electronic document is generated after the FAFSA is processed. It gives you some basic information about your eligibility for federal student aid and lists your answers to the questions on your Free Application for Federal Student Aid (FAFSA). It is also used to review your information for accuracy.
Independent Student
A student who is allowed to file a FAFSA on their own without parental information.
· U.S. Veteran in active-duty military service other than training purposes.
· Emancipated minor.
· Recently, homeless youth
· Self-supporting and at risk for homelessness.
· A parent who provides more than half of the financial support for a child who lives with him or her.
· Someone who has been in foster care,
· An orphan or a dependent or ward of the court for any period after the age of 13
Merit-Based Aid
Aid is awarded not based on need but on a student’s academic achievements as well as for exceptional talents and unique traits, such as musical or athletic skills. Awards and scholarships like this are usually awarded by states, college admissions, private groups, or individuals.
Need-Blind
A policy that does not consider an applicant's financial situation in its admissions decision.
Need Aware
A policy that considers an applicant's financial situation in its admissions decision.
SAI (Student Aid Index)
A calculated amount that determines how much a family should (but may not be able) to contribute to the student’s education for the upcoming academic year. This number is derived from the FAFSA form using an FM (Federal Methodology). At the same time, another SAI is calculated from the CSS/Financial Aid Profile (Institutional Methodology) required by specific colleges.
Self-Help Aid
Financial aid includes student employment and loans for which the student is responsible.
Unmet or Financial Need
Financial aid offsets the difference between the Cost of Attendance and the Student Aid Index. Financial aid is then awarded based on need and merit.
Verification
The process to confirm the information you provided on the FAFSA. Verification selection can be random or may be required if your FAFSA data is incomplete, estimated, or inconsistent. The U.S. Department of Education selects some students for the verification process. Others are selected if we find conflicting information.