College Scholarship Service (CSS)
A service that provides the Financial Aid PROFILE Service (see definition), which some colleges use in awarding nonfederal aid. Cooperative Education Plan (Co-op)
A program offered by some colleges that lets a student combine work and study. Co-op programs are either "alternating" (work and study in alternating school terms) or "parallel" (work and study scheduled within the same school term). Expected Family Contribution (EFC)
This is the amount a family is expected to pay toward educational expenses for the coming year. The EFC is calculated from a formula established by Congress, based on the information provided on the Free Application for Federal Student Aid (FAFSA). Federal Hope Scholarships
This is actually a tax credit, rather than a scholarship. Families can claim a tax credit of up to $1,500 for each eligible dependent for first- and second-year students enrolled at least half time. More information can be found at www.irs.gov, IRS publication 970. Federal Work-Study
This program provides much of the money necessary for colleges to offer on- and off-campus jobs to students with demonstrated need. Financial Aid Package
The Financial Aid Package tells you what grants, scholarships, loans and/or work-study your child has been awarded, and the amount of each. Financial Aid PROFILE Service
Some colleges use PROFILE, which is offered by the College Scholarship Service (CSS), to award their private funds. You register for PROFILE with the CSS, which sends you an application packet. The PROFILE is available online at profileonline.collegeboard.com. Free Application for Federal Student Aid (FAFSA)
The FAFSA is the financial aid application used by all colleges. Available at most high schools and colleges, the FAFSA is completed and then returned to the U.S. Department of Education for evaluation—in your child's senior year, as soon after January 1 as possible. You must fill out a FAFSA each year your child is in college. This can be done by mail, or online at www.fafsa.ed.gov, which is a secure website. Parental Contribution
The portion of the Expected Family Contribution (EFC) parents are expected to contribute toward college expenses. Parent Loan for Undergraduate Students (PLUS)
A federal loan for parents provided by the Federal Family Education Loan Program. To be eligible for a PLUS loan, you will usually be required to pass a credit check. Pell Grants
Awards made by the federal government that don't need to be paid back. The FAFSA serves as the Pell Grant application. Perkins Loans
Federal loans awarded to you by colleges as part of their total aid package. These loans must be repaid, but payments don't begin until nine months after your student leaves college. Colleges award these loans based on the information you provide on the FAFSA. Promissory Note
The binding legal document you or your student signs when you get a student loan. Satisfactory Academic Progress
To be eligible to receive federal student aid and most college aid, your student must meet and maintain the school's standards of satisfactory progress toward a degree. Special Circumstances
A college's financial aid administrator may consider special circumstances that could affect your Expected Family Contribution (EFC). Report any such conditions to the financial aid officer at the college(s) where you're requesting aid. Stafford Loans
These are federal loans available to you through local lenders. There are two types of Stafford Loans. For the subsidized Stafford, recipients must demonstrate need, and they pay no interest on the loan while they're in school at least half-time. Unsubsidized Stafford Loans, on the other hand, are available to non-need students, but require you to pay interest while still in school unless the lender defers interest payment until later. Supplemental Educational Opportunity Grants (SEOG)
SEOGs, part of the federal aid program, do not require repayment. They are made to students with exceptional financial need, as determined by the college. Student Aid Report (SAR)
About four weeks after mailing the FAFSA (or about one week if you file electronically), you'll receive the SAR. This report includes the information you provided on the FAFSA, an opportunity to make corrections, and your Expected Family Contribution (EFC). The SAR guides financial aid officers in determining who will receive Federal Pell Grants. Student Contribution
The portion of the Expected Family Contribution (EFC) the student is expected to contribute toward college expenses. This calculation is based primarily on student income and asset information. Supplemental Financial Aid Applications
Many colleges, particularly private ones, require students to file an additional financial aid application along with the FAFSA. Some colleges provide their own form, while others use the Financial Aid PROFILE Service. Verification
After sending in the FAFSA, students and parents may be required to provide copies of their income tax returns to the college. One reason the federal government requires this verification is that people often fill out the FAFSA before completing their tax returns and may base their figures on estimated information. Note: For more information on federal financial aid opportunities, get a free copy of The Student Guide by calling 1-800-4-FED-AID. It's also available online at studentaid.ed.gov. Copyright © 2006 by the author or Christianity Today International/Campus Life magazine.
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