Financial Aid Terminology
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Award Letter
Official notification of the type and amount of financial aid a college is offering you.
Award Letter
Books and Supplies
College books can be very expensive (they could cost anywhere from $200 to $700 a semester). You'll also need to purchase other supplies denpeding on your classes.
Books & Supplies
Demonstrated Need
The difference between what your family can contribute toward college expenses and the actual cost of attending college.
Demonstrated Need
Dependent Student Verification Form
AKA verification worksheet for dependent students. Found in your colleges' financial aid website.
Dependent Student Verification Form
Expected Family Contribution (EFC)
How much money you and your family is expected to contribute towards college expenses. EFC is based on your FAFSA application and a calculation by the federal government.
Expected Family Contribution (EFC)
Free Application for Federal Student Aid (FAFSA)
The federal application every student must submit in order to be eligible for federal financial aid. Visit fafsa.ed.gov
Free Application for Federal Student Aid (FAFSA)
Grants
Money for college that does not have to be paid. Most grants are need-based and are awarded by the state or federal government.
Grants
Institutional Aid (or Campus-Based Aid)
Financial assistance given by college, typically either need-based or merit-based aid.
Institutional Aid (or Campus-Based Aid)
IRS
Data Retrieval Tool (DRT)
The IRS Data Retrieval Tool (IRS DRT) electronically transfers your federal tax return information into your FAFSA form.
IRS Data Retrieval Tool
IRS
Tax Transcript (Parent or Student)
Your college/university might request one to verify income information. Here's the website to request a transcript online,
www.irs.gov/individuals/get-transcript
Student transcript is requested if student said they filed taxes on their FAFSA and didnt use IRS Data Retrieval Tool.
IRS Tax Transcripts
Loan
Money given to a student that must be paid back. There are several types of loans, including subsidized and un-subsidized loans.
Loan
Loan (Subsidized)
Loans made to eligible undergraduate students who demonstrate financial need to help cover the cost of higher education at a college or career school, they accrue interest after graduation.
Subsidized Loan
Loan (Unsubsidized)
Loans made to eligible undergraduate, graduate and professional students, but eligibility is not based on financial need, they accrue interest from the date of disbursement
Unsubsidized Loan
Merit Aid
Financial aid awarded to you from a college based on your individual achievements and talents.
Merit Aid
Need-Based Aid
Financial aid given based on the ability of you and your family to pay for college.
Need-Based Aid
Personal Expenses
Many essential items are provided by schools, but you might still need clothing, groceries, laundry, cosmetics, toiletries, health insurance, phone service, health care and medications, to name a few.
Personal Expenses
Room & Board
The cost of housing (on campus or otherwise) and food (meal plan or otherwise) while attending college or career school.
Room & Board
Scholarship
Money for college that does not have to be paid back. Usually awarded based on specific criteria, such as academic performance, extra-curricular activities, college major, ethnic heritage or religious affiliation. May be awarded by colleges, private groups or states.
Scholarship
Student Aid Report (SAR)
After you file the FAFSA, you will receive a SAR stating your EFC and eligibility for financial aid. This report is also sent to the colleges you indicate on the FAFSA.
Student Aid Report (SAR)
Student Loan
Financial aid that must be repaid. Student loan programs are available through the federal government and private lenders.
Student Loan
Student W-2
A W-2 reports the employees' annual wages and taxes withheld from paychecks. Requested when student reported working on FAFSA. If you dont have your W-2, you will have to ask your employer. If you work for a major company/business (e.g. Sea World), they should have an employee portal where you can access your W-2.
Student W-2
Transportation
If you drive to school, you'll need to pay for insurance, gas and maintenance. If you are commuting, you'll need to get a bus/train pass. If you plan to live on campus, you'll be traveling home for breaks.
Transportation
Tuition & Fees
The amount of money you owe for receiving instruction, materials, and/or supplies, or for the rental or purchase of equipment, for a course of study at your institution.
Tuition & Fees
Work-Study
Financial aid given in exchange for work (typically at a job on campus). To qualify for the Federal Work Study (FWS) program, you must complete the FAFSA.