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Common Financial Aid Terms 

• Contributor: A contributor is anyone who is required to provide information in support of the student’s financial aid application. A contributor is a parent, guardian, or student spouse. Each contributor is required to have their own Federal Student Aid (FSA) ID and must consent to their information being included on the student’s FAFSA.
• Cost of Attendance: Includes tuition, fees, and a standard allocation designed to cover reasonable living expenses while attending school. The cost of attendance is determined by the school using guidelines established by federal regulations.
• Default: The failure to repay a student loan according to the terms of the loan. If you default, your school, the organization that holds your loan, the state, and the federal government can take action to recover the money, including notifying national credit bureaus of your default.
• FAFSA: The Free Application for Federal Student Aid determines your financial aid. Apply online at . Forms may be filed anytime after October 1.
• Federal Direct Student Loan Program: Federally sponsored loan programs, which include the Stafford Loan and the Parent PLUS Loan (for parents of undergraduate students).
• Financial Aid Offer: The total financial aid you receive. Federal and non-federal aid, such as grants, loans, work-study, and scholarships are combined in a “package” to help meet your need.
• Financial Need: The amount by which your family’s contribution falls short of covering your college expenses. It is determined by subtracting the student aid index (SAI) from the total cost of attendance.
• Gift Aid: Financial aid that does not have to be paid back, such as scholarships and grants.
• Grant: A type of financial aid offer based on need or merit that does not require repayment. 
• Interest: A fee charged when you take out a loan. Interest is calculated as a percentage of the principal loan amount. The rate may be constant throughout the life of the loan (fixed rate) or it may change at specified times (variable rate).
• IRS Direct Data Exchange: Instead of entering their financial information manually, all contributors on a student's FAFSA application must consent to the IRS Direct Data Exchange (DDX), allowing their data to be transferred directly to the FAFSA. There is no opt-out for this requirement. If a contributor does not consent, the student will be ineligible for federal aid.
• Merit-Based Aid: Financial aid that is awarded based on your academic, leadership, or artistic talent, or some other criteria. Merit-based aid may consider your grades, test scores, special talents, or extracurricular activities to determine eligibility.
• Need Analysis: A process of reviewing your financial aid application to determine the amount of your financial aid eligibility. Completing a need analysis form is the required first step in applying for most types of financial aid.
• Need-Based Financial Aid: Financial aid that is awarded based on your financial circumstance. Need-based aid can be awarded in the form of grants, loans or work-study.
• Offer Letter: A letter from the college financial aid office listing all financial aid they are offering you. Offer letters vary among institutions, but they generally list the expected family contribution, cost of attendance, and the terms of the aid awarded.
• Student Aid Index: The Student Aid Index (SAI) is replacing the Expected Family Contribution (EFC) formula. This is a new need-analysis formula that financial aid staff will use when awarding need-based grants and scholarships. This formula change links eligibility to family size and the federal poverty level, which will mean more students will be offered Pell Grants.
• Unusual Circumstances: The Unusual Circumstances appeal is for applicants who would like to request a review of their dependency status for financial aid consideration. Under the new FAFSA, students will automatically be granted provisional independent status. Please contact the Financial Aid Office for information on Unusual Circumstances appeals.
• Work-study: An opportunity for you to work part-time and attend college. Work-study is designed to help fund your college education and graduate with reduced debt.