1. Financial Aid

2. What does FAFSA Stand For?
Free Application for Federal Student Aid
Probably most important application after college application
FAFSA determines how much money you will need to pay for college
Money awarded on first-come, first-serve basis
File between February 1 and March 1

3. Terminology …
Assets—the amount of money a family has in savings and investments
EFC—Expected Family Contribution. An amount the government figures a family should have available for college education.
Award Letter—A college’s answer to your request for financial aid. It will detail how much you can get in grants, scholarships, federal loans, and how much you will pay out of pocket.

4. More Terms … Grant—money given to you that does NOT need to be repaid.
Scholarship—money awarded to you that does NOT need to be repaid.
Loan—money given to you that MUST be repaid.

5. Subsidized Loan
A Federal loan that gives you money to pay for school that MUST be paid back
Principal is the amount of the loan
You will be charged Interest on the money borrowed that must also be paid back
If there is financial need, government will pay interest while you are in college
Federal Loan interest typically lower than private loans; click HERE for current interest rates (still true?)

6. Unsubsidized Loan A federal loan that MUST be paid back
Student does NOT show financial need
Student must pay all the interest, even while in school; government will not pay any

7. Merit Based Aid
Any financial aid awarded on the basis of personal achievement
Scholarships (academic and sports)
Do not have to pay this back
Some scholarships are tied to a student maintaining a minimum GPA; fall below the GPA and lose your scholarship

8. Work Study
Campus-based part-time jobs for students with financial need
School will provide work hours based on your award amount, class schedule, and academic standing

9. FAFSA 101