Financial Aid Glossary

Appeal

If the financial aid package received seems inadequate or is based upon inaccurate information, many schools have an appeal process in which you may write a letter requesting adjustments to the amount awarded. Include any new information and documentation that may affect your ability to contribute to college costs. Most colleges will require you to first accept the financial aid package offered to ensure no loss of funds.

Assets

Cash on hand (NOT earmarked for monthly bills) in checking and savings accounts, trust, stocks, bonds, other securities, real estate, home (if owned), income-producing property, business equipment, and business inventory.

Award Letter

A means of notifying aid recipients of the assistance being offered. The award letter usually provides information on not only the types and amounts of aid offered, but also specific program information, student responsibilities, and the conditions which govern the award. Generally, the award letter provides students with the opportunity to accept or decline the aid offered. Remember, the award letter is typically time sensitive, adhere to deadlines!

Award Modification or Revision

An action by the financial aid office resulting in an increase, decrease, program substitution, or cancellation of a recipients award. This may be necessitated by a change in a student's dependency status, or a change in financial circumstances of the family or student.

Cal Grants

One GPA verification form must be completed, signed by the college counselor, and submitted to the California Student Aid Commission by March 2^nd. Applicants must have financial need, be a legal California resident attending an eligible school in California, be in a program of study leading directly to an undergraduate degree of certificate, and cannot possess a baccalaureate degree prior to receiving an award. Award amounts and GPA eligibility cutoffs change with each school year.

College Scholarship Service (CSS)

A need analysis service of the College Board that provides the Financial Aid PROFILE Service required by some private colleges.

Expected Family Contribution (EFC)

This is the amount the student and the parents are expected to pay toward educational expenses for the coming year. The EFC is calculated from a formula established by Congress, based on the information that you provide on the Free Application for Federal Student Aid (FAFSA).

Federal Work-Study

This program provides 75 percent of the money necessity for colleges to offer on- and off-campus jobs to students with demonstrated need. (Authorized by Title VI, Part C of the Higher Education Act.) An award is made as part of a financial aid package and can be accepted or denied. Students receive funding in the form of paychecks based on work hours and a predetermined pay rate.

Financial Aid Package

The grants, scholarships, loans and/or work study you have been awarded by a college or university and the amounts of each. This will be part of the award letter. In theory, this award should cover the difference between what college costs and what your family can contribute. Grants and Scholarships are typically the free portion of the package, the loan component generally requires repayment, but many will have different repayment schedules and interest.

Financial Aid PROFILE Service

Offered by the College Scholarship Service (CSS), PROFILE is often used by private colleges to award private funding. The application is sent to CSS and your information is forwarded to the colleges of your choice. Many colleges will have specific questions tailored to their needs.

Free Application for Federal Student Aid (FAFSA)

The FAFSA is the common financial aid application used by all colleges and universities. Once filed, it is processed by the FAFSA department and your information is sent to your home as well as the up to six colleges or universities that you have listed on the form. If you are applying to more than six colleges, you have the opportunity to substitute the additional schools when you receive your confirmation Student Aid Report. Make sure to leave your most expensive California school as the first on that list since this is what the Cal Grant processor will be looking for to determine your eligibility for Cal Grants.

GPA Verification Form

The form verifying the merit component of the Cal Grants (A, B, C) and Graduate Fellowship awards. It is mailed to the appropriate office by your college counselor. All sophomore and junior grades excluding physical education and Reserve Officer Training Corps (ROTC) courses are included in the GPA verification. No extra points are given for honors or advanced placement courses.

Parent Contribution

The portion of the Expected Family Contribution (EFC) that your parents are expected to contribute toward college expenses. This figure is based on a variety of factors including income, family size, and the number of family members in college.

Parent Loan for Undergraduate Students (PLUS)

A loan for parents of dependent college students provided by the Federal Family Education Loan Program.

Pell Grants

Awards made by the federal government that do not need to be paid back. The FAFSA form serves as your Pell Grant application and eligibility depends on a formula set by Congress. The awards are normally made to high need candidates.

Perkins Loans

Federal loans awarded to you by colleges as part of their total aid package. You do not have to begin repaying these loans until nine months after leaving college. No separate application process is needed. Decisions are based on the information provided on the FAFSA.

Special Circumstances

A college's financial aid administrator may consider special circumstances that could affect your EFC. These may include unusual medical or dental expenses, tuition expenses for younger children in private schools, or an unemployed parent. Many colleges will encourage families to make the financial aid office aware of the situation in writing. Maintain regular contact with your school's financial aid administrator.

Stafford Loans

These are federal loans available to you through local lenders. There are two types of Stafford Loans: Subsidized and Unsubsidized. For the Subsidized Stafford Loan, you must demonstrate need, and you pay nothing on the loan while in school. Repayment begins 6 months after leaving school. Unsubsidized Stafford Loans are available to non-need students, but require interest payments while in school.

Student Aid Report (SAR)

The SAR, sent to you after filing the FAFSA, includes the information you reported and an opportunity to make revisions or corrections. If you are applying to more than six colleges, you have the opportunity to substitute the additional schools when you receive your confirmation Student Aid Report. Make sure to leave your most expensive California school as the first on that list since this is what the Cal Grant processors will be looking for to determine your eligibility for Cal Grants. The SAR, issued by the Federal Government, guides financial aid officers in determining Pell Grants.

Student Contribution

The portion of the Expected Family Contribution that the student is expected to contribute toward college expenses. This calculation is based primarily on student income and asset information.

Supplemental Educational Opportunity Grants (SEOG)

SEOG, part of the Federal Aid Program, does not require repayment. They are made to students with exceptional need; such need is determined by college.

Supplemental Financial Aid Applications

Many colleges, particularly private colleges require students to file an additional financial aid application along with the FAFSA. Private colleges tend to have more institutional funding to commit to students and will require additional information about equity and assets to supplement the Federal questions. Some colleges provide their own form, while others may use the Financial Aid PROFILE Service as their supplemental application. It is best to check with each college to see which supplemental application, if any, is required.

Verification

After sending the FAFSA, students and parents may be required to provide copies of their income tax returns to the college. The Federal Government requires this verification, because people often fill out the FAFSA before completing their tax returns and may base their figures on estimated or projected information.

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