Financial Aid Has a Language of Its Own

Originally posted from KY Dept of Education

As high school seniors and their parents begin the college financial aid process, they may find themselves faced with unfamiliar terms. This short glossary from the Kentucky Higher Education Assistance Authority (KHEAA) may help.

  • conversion scholarship/loan – This type of financial aid requires recipients to provide certain services or pay back the funds with interest.
  • expected family contribution (EFC) – This is the amount thestudent and family are expected to pay toward yearly college costs.
  • FAFSA  The Free Application for Federal Student Aid is the form all students must complete when applying for federal and state student aid. The best way to file is online.
  • financial need – the difference between the student’s EFC and the total cost of attending a college.
  • grant – usually based on financial need and generally does not have to be repaid.
  • institutional aid – refers to the scholarships, grants and other financial aid programs administered by the college.
  • need analysis – the answers provided on the FAFSA are analyzed to determine a student’s EFC and financial need.
  • Student Aid Report – is based on the information provided on the FAFSA and lets students know their EFC and eligibility for aid.
  • waiver – lets a student attend college without having to pay tuition and certain fees.
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