Glossary of Financial Aid Terms
Assets: The quantity of money a family has inside savings and investments accounts, including savings and checking, property like a business, a farm or other real estate, as well as stocks, bonds, and trust funds. Cars are not considered assets, nor are such possessions as coin collections or gemstones.
Cooperative Education: Programs offered by many institutions of higher learning where students alternate times of enrollment with times of employment. They are usually paid, and that can extend the usual bachelors program to five years.
Expected Family Contribution (EFC): Also known as Parental Contribution, this financial amount is determined by a formula set by the federal government that determines how much of a family's resources should be thought to be "available" for college. Allowances for providing for a family and their financial needs in the future are also taken into account before deciding the amount a family should be able to spend on college.
Independent Student: The kind of student who reports only his or her own income, plus that of a spouse, if applicable when they apply for financial aid. Students that will be 24 or older by December 31st, will be considered "independent" for the following year automatically. Students that are under 24 will be determined to be "independent" if they are:
- As of the date of filing the FAFSA are married.
- The financial support for a legal dependent but not a spouse.
- A U.S. military veteran.
- Someone who is orphaned or ward of the court.
- Determined to be an independent by a school's administrator of financial aid because of unusual circumstances.
- A student in graduate or professional school.
- Serving on active duty at present in the Armed Forces for reasons other than training.
Need-based financial aid: Those kinds of financial aid granted on the basis of personal financial need, without association with personal achievement or minority status (which is known as merit-based aid).
Merit-based financial aid: Those kinds of financial aid awarded on the basis of personal achievement, military status, or minority status instead than financial need.
Subsidized loan: For Direct Loans and/or Subsidized Federal Stafford loans, the government pays APR to the lender on behalf of the borrower when the student is in college and during grace periods that have been approved. Also, the borrower is responsible only for a discounted APR. When a student is enrolled for at least half-time, a subsidized student loans doesn't gain interest to be paid.
Are you ready to apply for financial aid now? Make sure you follow the tips to applying for financial aid.
