DIRECT PLUS LOAN: Federal student loan available to parents/guardians of undergraduate students to help pay for educational expenses not covered by other financial aid. Eligibility not based on financial need. Credit check required.
DIRECT SUBSIDIZED LOAN: Federal student loan offered to undergraduate students with financial need. This loan has interest that is paid by the government while the student is attending college at least half time, for the first six months after leaving college, and during deferment.
DIRECT UNSUBSIDIZED LOAN: Federal student loan offered to undergraduate, graduate, and professional students. Financial need is not considered. Interest on this loan is always paid by the student.
EXPECTED FAMILY CONTRIBUTION (EFC): The amount that is estimated your family will be able to pay toward your college expenses. The difference between your family's contribution and the cost of the college you choose will be your "need," that is, the amount of financial aid you will require. Your family contribution will be constant (as long as your circumstances don't change), but your need will change in relation to the total costs at each college you consider.
FEDERAL PELL GRANT: A federal grant for undergraduate students with high financial need. Apply by completing the FAFSA.
FEDERAL SUPPLEMENTAL EDUCATION OPPORTUNITY GRANTS (FSEOG): Grants financed by the federal government for students with exceptional financial need. Each college receives only a preset amount of money for the FSEOG program and gives it to the most deserving students until the funds run out.
FINANCIAL AID PACKAGE: The mixture of grants, loans, jobs, and other funds that is put together by the financial aid office for a student who needs financial aid.
GRANT: Money given by a college, government agency, or private group that is an outright gift and does not need to be paid back. Financial need must be demonstrated.
LOAN: Money given by a college, government agency, bank, or private group that must be paid back.
MERIT AID: Scholarship money that is given to a student in recognition of a special talent, ability, academic record, or other personal characteristic. The student's financial situation is not taken into account.
NEED-BASED AID: Grants or loans given to eligible students on the basis of their financial need. Most college scholarships in the past several decades have been need-based.
PRIOR PRIOR YEAR (PPY): Both CSS Profile and FAFSA will now allow students to report tax information from a prior, prior tax year, which means tax information from two years ago.
SCHOLARSHIP: Same as a grant. No financial need has to be demonstrated.
STUDENT AID INDEX (SAI): The amount that is estimated your family will be able to pay toward your college expenses. Replaces the EFC on the FAFSA in 2022.
WORK-STUDY PROGRAM: A federally funded program that provides part-time, on-campus jobs for students who are on financial aid.
