AOF Financial Aid Vocab

Financial Aid Office

A college office that serves as a resource for students who need help paying for college costs. Financial aid officers can help you to apply for and receive grants, loans, scholarships and work-study employment. The financial aid office may also offer programs to help you manage your money.

Grant

A kind of "gift aid" — financial aid that doesn't have to be paid back. Grants are usually awarded based on need.A grant is a monetary gift for people pursuing higher education. It is often based on financial need and does not need to be repaid (unless, for example, you withdraw from school and owe a refund).

Expected Family Contribution (EFC)

A measure of your family's financial strength. States and colleges use this number to help determine your financial aid award. The EFC is calculated using information you supply about your family's financial circumstances

Work Study

A program that allows students to take a part-time campus job as part of their financial aid package. To qualify for the Federal Work-Study Program, which is funded by the government, you must complete the Free Application for Federal Student Aid (FAFSA). Some colleges have their own work-study programs.

Federal Subsidized Loan

Awarded on the basis of financial need. You won't be charged any interest before you begin repayment or during authorized periods of deferment because the federal government "subsidizes" the interest during these periods.

Financial Aid

Money given or loaned to you to help pay for college. Financial aid can come from federal and state governments, colleges, and private and social organizations.

Federal Unsubsidized Loan

Not based on financial need. You'll be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate while you are in school or during other periods of nonpayment, it will be capitalized - that is, the interest will be added to the principal amount of your loan, and then additional interest will be based on that higher principal amount.

Private Loan

Private student loans, like federal student loans, can be used to pay for college costs, but they originate with a bank, credit union or online lender rather than the federal government. Private student loans are best used to fill a college payment gap after maxing out federal loans. Federal loans are preferable to private loans for several reasons: You don't need a credit history or a co-signer. The interest rate on federal loans tends to be lower. Federal loans offer benefits like income-driven repayment options and forgiveness opportunities.

Scholarship

Scholarships are gifts that don't have to be repaid and are designed to help students pay for an undergraduate degree. They can be a one-time gift or are renewable, depending on the scholarship.A kind of "gift aid" — financial aid that doesn't have to be paid back. Scholarships may be awarded based on merit or partially on merit. That means they're given to students with certain qualities, such as proven academic or athletic ability. Learn more about gift aid .

NYS Enhanced Tuition Rewards

The Enhanced Tuition Awards (ETA) program provides tuition awards to students who are New York State residents attending a participating private college located in New York State.

PELL Grant

The Pell Grant is the largest federal grant program offered to undergraduates. It is designed to assist students from low-income households. To qualify for a Pell Grant, a student must demonstrate financial need by completing and submitting the FAFSA® form.

NYS TAP

The Tuition Assistance Program (TAP) helps eligible New York State residents pay tuition at approved schools in New York State. TAP is one of the grants, scholarships and awards programs administered by the New York State Higher Education Services Corporation (HESC).

Award Letter

The document you receive from a college that explains the terms of the financial aid that the college is offering you. The information includes the types and amounts of financial aid offered, what you're expected to do to keep the award and a deadline for accepting the award.

FAFSA

The free application form you submit to apply for federal financial aid. It is required for all students seeking federal student grants, work-study programs and loans. Most colleges require it as well. The FAFSA may also qualify you for state-sponsored financial aid

Cost of Attendance (COA)

The total amount of college expenses before financial aid. Cost of attendance includes money spent on tuition and fees, room and board, books and supplies, and living expenses.

Net Price

The true amount a student will pay for college. The full cost of attendance at a college (including room and board, supplies, and other expenses) minus the gift aid and education tax benefits.