There are a tone of important terms about planning for college, so much so that it is difficult to keep it all straight.
Closely read the content of this Drop Down object to learn about some of the financial planning terms we find critical for families to be aware of.
What is FAFSA?
FAFSA is an abbreviation for Free Application for Federal Student Aid. Apply for financial aid for college or graduate school.
What is Financial Aid?
Money is given or loaned to students to help pay for college. Financial aid comes in the form of scholarships, grants, loans, and work-study opportunities.
What is a Loan?
Money lent with interest for a specified period of time. Student loans from the federal government, state agencies, and the college itself may be offered as part of a student’s financial aid package from a college.
What is a Scholarship?
A type of financial aid that doesn't have to be repaid. Scholarships may be based on need, on need combined with merit, or solely on the basis of merit or some other qualification, such as minority status.
What is a Grant?
Financial aid awards are given to students that don’t have to be paid back. The terms “grant” and “scholarship” are often used interchangeably to refer to gift aid, but grants tend to be awarded solely based on financial need, while scholarships may require the student to demonstrate merit.
What is My Expected Family Contribution (EFC)?
A measure of your family’s financial strength that colleges use to determine how much federal financial aid you’re eligible to receive. Schools consider your family’s income, assets, and benefits (such as unemployment or Social Security) as well as your family size and the number of family members who’ll attend college during the year.
What to learn more about the types of financial aid mentioned in the above drop-down object?