Terms to Know: Financial Aid

Terms to Know: Financial Aid

Following are some key financial aid terms you might run across during your college search:

Aid package - A combination of aid (possibly including a scholarship, grant, loan and work) determined by a college financial aid office.

Expected Family Contribution (EFC) - An amount you and your family are expected to contribute toward your education. It is used in determining eligibility for federal student aid.

Free Application for Federal Student Aid (FAFSA) - The application

required for students to be considered for federal student financial aid. Obtain a FAFSA form or electronic filing information from a high school or college for the appropriate year (usually available in November). The FAFSA is processed free of charge and used by most state agencies and colleges.

Grants - Awards, usually based on financial need, that do not require repayment. Grants are available through the federal government, state agencies and educational institutions.

Scholarships - Awards to students based on merit or merit plus need that do not have to be repaid.

Student Aid Report (SAR) - The information you will receive approximately two to four weeks after your FAFSA has been processed. It will report the information from your application, and if there are no questions or problems with your application, your SAR will report your Expected Family Contribution (EFC).