Financial Aid Definitions

COA Cost of Attendance; this will vary from college to college. It is the amount it
will cost a student in total to attend that college. It does not include any financial
aid. This is sometimes referred to as a colleges sticker price.
EFC Estimated Family Contribution; this number is calculated based off the
information you provide to the FAFSA. It represents the alleged amount that a family
should be able to pay out of pocket towards educational expenses. BUT! It is not a
bill, nor is it a precise amount that any college is going to make you pay. It is used
to calculate how much financial need a student has.
Dependent Student a student who must report parental information on their
FAFSA; a student who does not meet any criteria to be an independent student (see
below)
Direct PLUS Loan or Parent PLUS Loan federally insured student loan;
borrower is fully responsible for paying interest on the loan, regardless of loan
status; interest begins to accumulate the day you accept the loan; requires parent
to apply; if a parent is denied a PLUS loan then the student will become an
independent student and will be eligible for a higher limit of student loans
Entrance Counseling a mandatory process that students with federal student
loans must complete to receive their loan; it explains the rights and responsibilities
of the loan, repayment, and obligations
Exit Counseling a mandatory process that students must complete upon
graduation or dropping below half time status of enrollment in college; it explains
repayment schedules and options
FAFSA Free Application for Federal Student Aid; a federally secured document that
is needed to receive federal, state, and some institutional aid. It is based mostly on
tax information, family circumstance, and financial need.
Grant this type of aid does not have to be repaid. It is a gift of free money to help
you pay for college! Grants are usually awarded to students with financial need as
determined by the FAFSA. The greater your need, the more likely you will receive a
large grant.
Independent Student a student who does not need to report parental
information on their FAFSA; a student who is in foster care; a student who is
homeless; a student who is unaccompanied; a student who has no living biological
or adoptive parents; a student who is a dependent or ward of the court; a student
who is an orphan; a student who is at risk of being homeless; a student who is
married; a student who is older than 24 years old; a student who is a veteran; a
student in graduate of professional school; a student who is a member of the armed
forces; a student who has children of their own; a student who is an emancipated
minor

PELL Grant a federally insured type of aid; you must complete your FAFSA to
receive; amount ranges from $0-5700 per year depending on financial need
determined by FASFA; does not have to be repaid
Perkins Loan a federally insured loan that is serviced by your university/college;
given to students to unmet need; must file FAFSA to receive; must be repaid with
interest
SAR Student Aid Report; you will receive this a couple of weeks after you submit
your FAFSA. This is basically a receipt for your FAFSA. You should review this for
accuracy. Most importantly, your SAR will contain your EFC (see above for details).
Scholarship this type of aid does not have to be repaid. It is a gift of free money
to help you pay for college! Institutional scholarships are awarded by a college to a
student for outstanding academic achievement (Ex winning the Centralis Award at
CMU, or being awarded the Founders Scholarship at SVSU). Private scholarships are
awarded by a private donor to a student for various reasons like academic merit,
athletic ability, strength of character, etc. The local scholarships sponsored by the
Community Foundation are an example of private scholarships. A student may also
earn an athletic scholarship to a D1, D2, NAIA, or community college.
Student Loans a broad term referring to money borrowed to pay for educational
expenses. These must be repaid on a designated schedule, with interest. These can
include Direct Federal Loans, Perkins Loans, or Private Loans.
Work Study a federal aid program; must file your FAFSA to receive; students
work a job during their college career and the federal government pays their wage
in the form of a paycheck; work study funds should be applied to educational costs;
a student does not receive their work study aid if they do not work; think of it as
work to pay for study; the benefits of a work study job compared to a normal
student job are better hourly wages, more job options, less competition in the
student job market