Glossary of Financial Aid Terms

Award Letter
Issued by a college’s financial aid office, this is the official notification of the financial aid a student is eligible to receive.

Cost of Attendance (COA)
This is the total amount it will cost a student to attend a particular college. It includes tuition, housing and meals, fees, books, supplies, transportation costs, and personal expenses.

Expected Family Contribution (EFC)
This is the amount that the federal government estimates that a family should be able to pay toward the cost of a child’s education. This information is compiled from the FAFSA by the federal government.

Financial Aid Package
This is the total amount of financial aid a student receives. It may consist of grants, scholarships and loans.

Free Application for Federal Student Aid (FAFSA)
This is the form a student completes to determine the EFC and the financial aid that will be available.

Grants and Scholarships
These constitute free money available for education through a college or university, the state, the federal government, and outside agencies. Grants and scholarships may be awarded on the basis of need, GPA, merit or all three.

Interest
This is the amount charged by a bank for the use of its money through a loan.

Federal Stafford Loan
This is a federal low-interest student loan available to college students. It can be subsidized (the government pays the interest during school) or unsubsidized (the student is responsible for interest).

Student Employment
This is work—either on or off campus—for students to help them pay for their education.