Financial Aid Terms
Award Letter: A letter indicating a student has been awarded some sort of scholarship or financial aid.
Demonstrated Need: The difference between college cost and what a family can afford to pay toward college’s expense.
Expected Family Contribution: This is a dollar amount the federal government thinks your family can afford to pay for college costs.
Financial Aid Package: The total amount of money a college is offering to a student. This includes scholarships, potential loans, and grants.
FAFSA: Free Application for Federal Student Aid. Most schools require a completed FAFSA to determine eligibility for federal student aid.
Grant: A grant is a form of financial aid that does not have to be repaid. However, it usually has terms and conditions around enrollment and graduation.
Loan: This is a financial loan and must be repaid typically with interest. The repayment of the loan usually starts after the student graduates.
Room and Board: Fees for a dorm room and a meal plan.
Scholarship: A financial contribution to a student based on need, academic, or athletic achievements. A scholarship rarely has to be paid back.
Tuition: The cost of college courses, not including fees, nor room and board.