Financial Aid Terms
The letter sent from the colleges or universities indicating how much financial aid the student qualifies for.
COLLEGE WORK STUDY
Government-support financial aid program coordinated through financial aid offices. An eligible student (based on need) may work part-time on campus while attending college to earn money towards tuition.
A form used by the College Scholarship Service to gain information about the student’s total family income, assets, and expenses.
FEDERAL PARENT LOAN (PLUS)A loan for parents who have dependent students in school. Parents can borrow a sum of money equal to the cost of education less financial aid received. Parents begin making payments 30-60 days after they receive the loan. Parents must pay at least $50 a month. Loan must be repayed within ten years.
FEDERAL PELL GRANT
Financial assistance awarded by the federal government on the basis of need, designed to provide the foundation of an aid package for post secondary education. The Pell Grant may be used toward tuition, room and board, books or other educational costs, and requires norepayment.
FEDERAL PERKINS LOAN
A low interest loan that students may borrow to assist in meeting the cost of a college education.
FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)A form used by colleges to gain information about a student’s total family income, assets and expenses used for federal based programs.
These are gifts, which do not have to be repaid. Many of these are awarded on the basis of need alone.
Money loaned for higher education through either state or federal funds, private banks or the college itself. These require repayment with interest to the source of lending.
These are gifts, which do not have to be repaid. These are awarded when the recipient meets criteria other than need such as athletic, academic and artistic.
SUBSIDIZED STRATFORD LOANA Federally subsidized low interest loan made by a bank, credit union, or savings and loan association. Interest does not accrue while student is in college or in deferment. Repayment starts six month after graduation or leaving college. FAFSA must be completed to qualify for loan.
UNSUBSIDIZED STRATFORD LOANSame as the Subsidized Stratford Loan though interest will accrue while student is in college.