| Funding a college education
is tough work and requires careful and knowledgeable
planning. Knowing the terminology can help you ask the
right questions, so we expect this page will help you
with your preparations. Join us at one of our local
workshops or contact
us to learn more about the process and how we can
help you get the best for your child! |
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Acceptance Form |
A form provided by the college or university offering
aid, this document gives you the opportunity to indicate
the acceptance of offered aid, declination of all or
part of the package, and typically provides means for
initiating an appeal to modify the award. If you are
concerned that some important factor has been overlooked
in your aid determination, we can help you with your
appeal! |
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Assets |
In the context of College Funding, Assets are the
tangible items of value that family has in checking
and savings accounts as well as a variety of investments
including real estate, stocks, bonds, trust funds and
even ownership of a business. Ordinary material possessions
(e.g. jewelry, cars) are not considered assets in the
financial aid process. The value of the principal home
is counted as an Asset by many colleges in award determinations
but is not included in the calculation for eligibility
for federal funds. The type of holdings a family has,
as well as the owner (i.e. parents vs. students) of
the assets can make a large difference in aid determinations;
we can help you plan your holdings to maximize your
potential for aid. |
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Award Letter |
A notice to the student from the college or university
that states the type, amount and terms of the financial
aid being offered. |
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Base Year |
Most schools and colleges use the financial information
from a students Base Year which is the tax
year preceding the year in which the student will enroll. |
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Business/Farm Supplement |
A financial aid form required by some colleges for
parents and students who own a business or farm in order
to assess that asset's impact on the family's expected
contribution to school funding. The College
Scholarship Service processes this form as a part
of the Financial Aid PROFILE. |
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COA |
COST OF ATTENDANCE - The total amount of all expenses
directly connected to student's year in school, including
tuition, school fees, room and board (only during the
period of enrollment), books, supplies for education,
travel costs directly related to school, etc. A financial
aid administrator has the authority to add other unusual
expenses to the COA at their discretion. The COA is
significant, as a student's need is calculated from
the COA minus their EFC. |
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CSS |
COLLEGE SCHOLARSHIP SERVICE - Part of The
College Board organization, this is one of the agencies
that processes financial aid information and applications. |
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CSS PROFILE® |
One of the services delivered by the CSS
organization, the PROFILE is another financial aid application
service used by number of higher ranked and more exclusive
schools to help them award non-federal student aid funds.
The PROFILE provides a much deeper look into a family's
financial situation to determine financial need and
ability to pay. If your target schools require the PROFILE
it is even more critical that you understand the assessment
rules well ahead of your child's Base
Year or you risk the financial aid opportunities
appropriate for you. |
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Discretionary Income |
In the eyes of aid officers, this is the income left
over after all mandatory financial obligations, including
taxes, have been paid. |
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Early Action |
An Early Action program has earlier acceptance notification
dates than the regular admissions process (and hence
has earlier application deadlines). It is not the only
program to provide earlier feedback. Unlike the Early
Decision program, the Early Action program is not
binding (i.e. you are not required to attending the
school if admitted). |
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Early Admission |
Early Admission is a select program used by colleges
which allows highly exceptionally advanced high-school
juniors to skip their senior year and head straight
for college. However, some use the term Early
Admission to loosely refer to the entire Early
Action and Early Decision
programs. |
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Early Decision |
This is another program offering accelerated feedback
to students on college admission. Applications for Early
Decision are binding commitments and if the student
is accepted they must attend. This process is only appropriate
for students who are confident of their top college
choice and meet all requirements to a degree that they
are likely to be accepted by that college. Typically
the timing of this process is application submission
in November and acceptance decision feedback in December
of the students Senior year, in contrast to typical
acceptance decisions of mid April. A significant caveat
to this process is that students must commit before
before they find out about the financial aid offer.
As the process is binding, a student can only apply
Early Decision to one school. |
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EFC |
EXPECTED FAMILY CONTRIBUTION - A figure determined
by a government calculation which states how much of
a family's income and assets will be considered available
for college expenses. Many factors are taken into account
to determine a family's financial ability to fund education.
The procedure can appear complex, but a well informed
family can position themselves to minimize their EFC
and hence maximize their aid eligibility. |
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FAFSA |
FREE APPLICATION for FEDERAL STUDENT AID - The official
government form that all students must use to apply
for federal aid. Some schools seek financial information
(via the CSS Profile) beyond what
the government requires to determine aid awards. |
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Federal Pell Grant |
Federal grant awarded to undergraduate students based
strictly on financial need as assess by the information
from the FAFSA form. |
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Federal Perkins Loan |
A loan funded by the government but awarded by colleges
to both undergraduate and graduate students. The rate
of these loans is 5%. |
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Federal PLUS Loan |
Another loan in the family of federal funding programs,
the Plus loan is a non subsidized program for parents
of undergraduate students. |
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Federal Stafford Loan |
A Federal Education Loan Program directly for students
(not parents). These loans can be either government-subsidized,
(the government covers interest while he borrowing student
is in school) or unsubsidized (interest accrues from
when the loan is made even though payments aren't due
until after graduation). |
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Federal Work-Study Program |
A federal, need-based financial aid program helping
eligible students earn a portion of their college expenses
while they attend school. While awards are made by colleges,
a part of the funding comes from the federal government.
Some states support similar programs of their own. |
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Financial Need |
The difference between a college's COA
(costs) and a family's EFC (ability
to pay). This is what the Financial aid officer's think
your need is based on their methodology, not what you
think you need. Knowing their methodology and playing
by their rules is essential to get a fair determination. |
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FSEOG |
FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT
- A federal grant awarded by colleges to the most needy
undergraduate students. Need is as determined by the
federal formula. |
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Gift Aid |
Financial aid in the form of a grant or scholarship;
it does not have to be repaid. |
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Gross Income |
A family's or individual's total income before deductions.
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Merit Based Aid |
Any form of financial aid awarded on the basis of
personal achievement, special skills or individual characteristics
without consideration of financial need. |
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Need Analysis |
The method of calculating a family's expected level
of financial contribution toward college costs (the
EFC). The college costs (COA)
minus the EFC yields the amount of financial help a
student will need. |
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Open Admissions |
Students are admitted regardless of academic qualifications.
The school may require an additional probationary period
during which the student must earn satisfactory grades
to ensure continued enrollment. The majority of schools
offering this feature are two year community colleges.
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Rolling Admissions |
Students' applications are considered when all required
credentials have been submitted. There is either no
deadline or a very late deadline; qualified students
are accepted until classes are filled. Applicants are
notified of admission continuously throughout the enrollment
period. (need mod's) |
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SAR |
STUDENT AID REPORT - Generated from the FAFSA
form, it is the official document that stating the key
parameters of your federal aid determination, such as
your EFC. |
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The College Board |
A nonprofit membership organization of over colleges
and educational institutions that administers the SATs
and runs the College Scholarship Service.
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Unmet Need |
When the combination of a student's financial aid
package and the family contribution does not cover the
costs of attending a particular college, the gap is
called the Unmet Need. |
