Student Grants and Scholarships: They are both considered gift aid since they do not have to be repaid. They are the most desirable forms of student financial aid.
Student Loans: These are sums of money that must be repaid. The reason they count as student financial aid is that they contain favorable repayment terms and are offered at attractive interest rates below the going commercial rates.
Work Study: This is exactly what it sounds like. It is money that does not have to be repaid and the college will provide the student with the job. Work Study jobs pay minimum wage and the work commitment is fulfilled once the students has earned the amount of the work-study award.
FAFSA - Free Federal Student Financial Aid Application: Every student who wants to apply for any of the federal student financial aid programs, some of the campus-based student aid programs, and some of the state student aid programs must first complete the federally approved student aid application which is called the Free Application for Federal Student (Financial) Aid. Students may also have to fill out additional forms such as the Financial Aid Profile (FLAP) for a small fee if the colleges they are applying to or the state they live in require additional data for awarding their own funds.
Dependent Students: A student who is dependent on their parents for support. Both the parent's and the student's income and assets are evaluated when determining how much a family can contribute towards college costs.
Independent Student: A student who is not dependent on their parents for support. Only the student's income and assets, and those of a spouse are evaluated when determining a contribution towards college costs. Generally, students must be at least 24 years of age by December 31st of the award year to qualify as an independent. Students with legal dependents also qualify. Married and graduate students also qualify as independent students.
Full-Time Student: Students must take four classes per semester or 12 credits per term to be considered a full-time student.
Part-Time Student: To qualify for most federal student financial aid programs, you must take two classes per semester, or six credit hours per term.
Family Contribution: The amount a student and his/her family are judged capable of paying. The contribution remains constant, no matter where the student plans to go to college. Through planning, with the assistance of firms like College Plan Advisor, families can lower this number and increase their eligibility for financial aid.
Cost of Attendance: This number will differ at each school. It includes tuition, fees, room, board, books and materials, transportation costs, and living expenses.
Financial Need: If the cost of attendance is greater than the student's family contribution, then the student has a "financial need." To illustrate, if the cost of attendance is $10,000 at a particular school and the student's family contribution is $5,000, then the student's financial need is $5,000.
Priority Filing Date: The official period for filing most of the federal student financial aid applications is between January lst through May lst of the first calendar year of the school year for which the student is applying for aid. The priority filing date varies from one school to the next, but usually falls before the end of March. Students who file their student financial aid applications (FAFSA) on or before the schools published priority filing date will be given first consideration for all federal and campus-based student aid programs.
Two Or More Family Members In College: The parental contribution towards college costs is divided by the number of students in college which includes parents and students. Therefore, if the parental contribution is $10,000 and there are two students in college, the parental contribution becomes $5,000 per student or "two students for the price of one."
Divorced Or Separated Parents: Students should use the income and assets of the parent with whom they lived for the greater part of the calendar year preceding the year in which they will be entering college.
Remarried Parents: The step-parent's income and assets must also be included for needs analysis, just as though they were the student's natural parent.
Student Financial Aid Report: After a student files his/her student financial aid application (FAFSA), he/she will receive a Student Aid Report from the U.S. Department of Education within 6 weeks. The purpose of the Student Aid Report is to tell the student what his/her family contribution will be based on the information supplied on the FAFSA.
Accreditation: A process that ensures that a school's programs maintain at least a minimum level quality. A student must make sure that the school they plan to attend has been accredited by a nationally recognized accreditation association. Students who attend a non-accredited school will not qualify for federal student finanical aid (or state student financial aid).
Student Financial Aid Package: Using the information from the Student Aid Report, each school's financial aid administrator builds a college financial aid package for the student. The financial aid package generally consists of grants, scholarships, work/study, and loan aid.
How Frequently Does A Student File For Financial Aid? Every single year that they are applying for student financial aid. A family's financial circumstances and personal circumstances change from year to year and so does their eligibility for college financial aid. Therefore, just because a student qualifies for student financial aid one year, it doesn't mean that they will qualify for the same amount the next year.
What Happens After Students Mail In Their Forms? Their student financial aid applications are sent to the needs analysis processor. The processing service checks the information the student provides. If there is something wrong or inconsistent on the student's application, they will be told in their Student Financial Aid Report. If there is nothing wrong, the processor will convert the student's information into a Family Contribution. A detailed analysis of the student's information is then sent to each of the colleges they named on the application. Once the student receives the Student Aid Report, it is important for him/her to send it to the college financial aid office at the school they plan to attend. It is also a good idea to enclose copies of the student's and parents' tax returns since there is a 55% chance they will request it. At this point, the financial aid officer must determine the student's expense budget. Next, the financial aid officer reviews the student's family contribution. Then, the FAO determines the student's need by subtracting the Family contribution from the student's expense budget. Lastly, the college financial aid office tries to meet this need by building the student a financial aid package.
Financial Aid Package: The foundation of the student financial aid package is any assistance the student receives from the Federal Pell Grant program, the student's state financial aid programs, and any scholarships the student found on their own. The FAO then uses funds from the three federally funded campus based programs. These three programs are administered by the college financial aid office at each participating school. Each school receives a certain amount of funds from each of these programs and when the money is gone, there are no more awards that year. These three programs are the Carl D. Perkins Loan program, the Supplemental Educational Opportunity Grant Program, and the College Work Study Program. Next, the college will incorporate any campus based scholarships or private scholarships the student found on their own into the package. If, at this point, the student still has a remaining need, the FAO will recommend that the student obtain a Stafford Student Loan.
