9 Financial Aid Terms Every College Applicant Should Know
Filling out your application for financial aid can be stressful if you don’t understand what you’re reading, especially if it’s your first time. The advisors at College Funding of Tampa Bay put together this short glossary of essential financial aid terms that you can refer to at any time.
1. Free Application for Federal Student Aid (FAFSA)
The FAFSA is likely the most common term you’ve come across as it’s your ticket to receiving financial aid. Since the word “free” is right in the name, any third-party site that requires you to pay a fee should be a dead giveaway in spotting red flags. When filling out your FAFSA, always file straight from the source.
Fill out your application on the official FAFSA website.
2. CSS Profile
Although less popular, the CSS Profile is also available for you to apply for financial aid. The main difference from FAFSA is that it’s determined by need-based aid rather than federal aid. Some students will even apply to both in order to increase their chances of receiving college funds.
3. Pell Grant
You may have heard the terms “grant” and “loan” tossed around together, but they don’t mean the same thing. When you receive a grant, you are not obligated to pay it back. It’s essentially free money for you to use toward all your college expenses.
4. Student Loan
While you don’t need to pay back a grant, you absolutely must pay back a loan. When you’re not eligible for a grant and a loan is your only option, there are two types to pick from. The difference between a federal loan and a private loan is definitely worth looking into because each one has their pros and cons depending on your situation.
5. Cost of Attendance (COA)
When deciding how much financial aid you need to fund your time in college, you must calculate the cost of attendance. This includes college tuition and fees, textbooks and supplies, food, transportation, and any housing expenses.
6. Expected Family Contribution (EFC)
Your household income is used to determine how much money your family is able to contribute towards your college education. FAFSA enters your information into their calculated formula and the result is your unique EFC.
7. Financial Need
In order to determine your financial need, FAFSA will subtract your expected family contribution from your cost of attendance in order to determine how much extra funding you need in order to comfortably earn a college degree.
8. Student Aid Report (SAR)
After FAFSA has fully processed all your information and ran their calculations, the end result is your student aid report which is sent over to the college you wish to attend. The college will use the information on your SAR to create your award letter.
9. Award Letter
After all your dedication and hard work, you can finally receive an award letter from your desired college. This letter will contain any Pell grants that you may receive as well as student loan opportunities to help fund your college experience.
College Funding of Tampa Bay Is Here to Help!
Need assistance receiving financial aid for college? Make an appointment with College Funding of Tampa Bay to get expert help in paying for higher education. Call (813) 755-6834 for a free consultation!
