Categorized | Business

Financial aid has a language of its own

Star Staff Reportsmoney-graphic-2

As high school seniors and their parents begin the college financial aid process, they may find themselves faced with unfamiliar terms. This short glossary from KHEAA may help.
·         Conversion scholarship/loan. This type of financial aid requires recipients to provide certain services or pay back the funds with interest.
·         Expected family contribution (EFC). This is the amount the student and family are expected to pay toward yearly college costs.
·         FAFSA. The Free Application for Federal Student Aid is the form all students must complete when applying for federal and state student aid. The best way to file is online.
·         Financial need. This term refers to the difference between the student’s EFC and the total cost of attending a college.
·         Grant. Grants are usually based on financial need and generally do not have to be repaid.
·         Institutional aid. This term refers to the scholarships, grants and other financial aid programs provided by the college.
·         Need analysis. The answers provided on the FAFSA are analyzed to determine a student’s EFC and financial need.
·         Student Aid Report (SAR). This report is based on the information provided on the FAFSA and lets students know their EFC and eligibility for aid.
·         Waiver. A waiver lets a student attend college without having to pay tuition and certain fees.
KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA provides the ThinkAhead Net Price Calculator to universities and colleges. The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA.

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