Financial Aid Terms

FAFSA (Free Application for Federal Student Aid): Application completed by student and parent to determine eligibility for federal student aid, including federal grants, loans and work-study programs.

Student Aid Index (SAI): Used to determine how much financial support you may need by calculating family income, assets and household size.

Need Based Aid: Financial aid offered based on demonstrated financial need, determined by FAFSA.

Merit Based Aid: Financial aid offered based on student's academic achievement, leadership, artistic talent or athletics.

Grants: Money for college that you do not repay, like Pell grant, FSEOG, Iraq and Afghanistan Grant and TEG.

Pell Grant: A federal grant offered to undergraduate students with financial need.

Scholarships: Money awarded based on specific criteria that you do not repay.

Federal Work-Study: A program that funds part-time job opportunities for students with financial need.

Subsidized Loan: A federal loan based on demonstrated financial need where the government pays the interest while enrolled in school and six months after you leave or graduate.

Unsubsidized Loan: A federal loan where you are responsible for all interest, which starts accumulating while in school.

Parent PLUS Loan: A federal loan that requires a credit check that parents can take out to help pay for their dependent's undergraduate education.

Private Loans: A loan offered by private lenders like banks or credit unions.

Offer Letter/Award Letter: The document a college sends you to explain what financial support you are eligible to receive. 

Satisfactory Academic Progress (SAP): The requirement that student's maintain a certain GPA and complete enough credits each year to continue to receive financial aid.