Financial Aid FAQs
Q: There are a number of terms related to financial aid that I do not understand. Where can I find a comprehensive list of these terms so that I can fully understand what they mean in the context of the financial aid process?
A: The U.S. Department of Education provides a glossary of financial aid vocabulary on its website. To access this glossary, click here.
Q: What is Student Aid?
A: According to the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "Student aid is money provided by the federal government or another entity, such as a school or a state government, to help students pay for college or career school. The U.S. Department of Education’s federal student aid programs deliver billions of dollars to students each year, representing a substantial federal commitment to provide financial assistance for postsecondary students. In 2013–14, the federal student aid programs will provide more than $150 billion in aid to more than 15 million people. "
Q: Where can I find funding?
A: Resources on preparing for college or career school, applying for aid, consumer protection, and more can be found here.
Q: What types of aid are available?
A: As stated in the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "the U.S. Department of Education (ED) offers three major types of aid. Grants are gift aid, and most do not have to be repaid unless an overpayment has resulted due to the student withdrawing from school before the planned end of the period of enrollment for which the grant was awarded. It is the school’s responsibility to inform the student whether any funds must be returned to ED. Loans must be repaid with interest. Federal Work-Study provides income from a part-time job."
For more detailed information, you may visit StudentAid.gov/types.
Q: What is Loan Default?
A: Loan Default is the failure to repay the loan according to the terms of the promissory note. Defaulting on a student loan will affect a borrower’s credit rating and could result in withholding of federal income tax refunds and denial of further federal student aid. Many students are only partially aware of their responsibility to repay student loans. Each student and their family are encouraged to learn as much as they can about the financial aid process, the responsibilities associated with borrowing money, and the consequences of failing to repay the loan according to its terms before signing the promissory note.
A one-page overview of borrower's responsibilities can be found here.
Q: What is State Aid?
A: According to the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "each state administers its own student aid programs, which might include scholarships, loans, fellowships for graduate school, or other types of aid. Students can contact their state education agency for more information; telephone numbers and Web addresses are listed at www.ed.gov/sgt.
Q: What is School Aid?
A: Many schools offer aid directly from their own funding. A FAFSA is required to be considered for this type of aid. To find out if the institution you are interested in applying to offers school aid, contact the individual school's website or directly with their financial aid department.
Q: Besides the types of aid mentioned above, what are some other possible sources of funding?
A: You may qualify for a private scholarship. There is millions of dollars available in the form of private scholarships for anything from merit based achievement and ethnic or racial heritage to special interests, hobbies, and community service awards. You are encouraged to search for and apply to as many of these scholarships you feel you are eligible to receive. The U.S. Department of Education provides a fairly comprehensive list of grants and scholarships here. Additionally, you are encouraged to use the Grants & Scholarships tab to access a number of other useful links and resources.
Q: How can I start saving for my child's education now?
A: The cost of attending a college or university is increasing each year. In order to better prepare for your son or daughter's future you may wish to consider the options available here.
Q: Who can get Federal Student Aid?
A: According to the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "Eligibility for most federal student aid programs is based on financial need rather than on academic achievement. To have his or her financial need determined, a student must complete and file a Free Application for Federal Student Aid (FAFSA).
Additionally, to be eligible for federal student aid, a student must:
- have a high school diploma or its equivalent, such as a General Educational Development (GED) certificate, or have been homeschooled and either (1) have a secondary school completion credential for homeschools as provided for under state law, or (2) if the state does not require the credential described above, have completed a secondary school education in a homeschool setting that qualifies as an exemption from the compulsory attendance requirements under state law;
- be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program;
- be a U.S. citizen or eligible noncitizen;
- have a valid Social Security number (with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau);
- make satisfactory academic progress in college or career school;
- sign certifying statements on the FAFSA such as agreeing to use federal student aid funds only for education expenses; and
- be enrolled at least half-time to be eligible for Direct Loan Program funds.
Note: This is not a comprehensive list of eligibility requirements. For detailed information on eligibility, see the Student Eligibility volume of the Federal Student Aid Handbook in the “Publications” section.
Q: Are international students eligible for aid?
A: International students must determine which schools actually offer aid to non-U.S. citizens. Most do not. Some schools may consider international students for their scholarships, but will not offer loans or other institutional aid. While it may be frustrating, the fact is that most colleges and universities will consider your ability to pay tuition as a determining factor in your admission.
Q: What is a TEACH Grant?
A: For students interested in working in a high-need field or in a school serving low-income students, grants are available to offset the cost of tuition. For more information, click here.
Q: How is financial need discovered?
A: As stated in the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "a student’s financial need is the difference between the student’s cost of attendance at the school and the Expected Family Contribution (EFC), an index number the school uses to determine how much aid the student can receive." For additional information on how financial aid packages are calculated, click here.
Q: What is included in the Cost of Attendance (COA)?
A: "The Cost of Attendance includes tuition and fees and an allowance for living expenses, such as room and board, books and supplies, miscellaneous personal expenses (including a reasonable allowance for renting or purchasing a personal computer), and transportation costs," as stated in 2013-14 Counselors and Mentors Handbook on Federal Student Aid.
Q: How much funding is available through each of the aforementioned programs?
A: For details and specific information regarding any of the aid programs listed above, we encourage you to read through the 2013-14 Counselors and Mentors Handbook on Federal Student Aid or to submit your question through our Contact tab.
Q: What is a PIN?
A: A PIN is a Personal Identification Number used to sign the FAFSA electronically. Parents are also encouraged to get a PIN. You can obtain a PIN by clicking here. Remember to keep your PIN safe and to never share it with anyone. If you forget your PIN, you can request it to be emailed you by clicking here.
Q: What documents do I need to complete the FAFSA?
A: As stated in the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "To complete the FAFSA, students (and their parents, if applicable) need their Social Security numbers, driver’s licenses (optional), federal income tax returns or estimated amounts (also see page 16), Form(s) W-2, current bank statements, and records of any stocks, bonds, and other investments and assets."
Q: When should I apply for the FAFSA?
A: The processing cycle lasts 18 months. Students should apply as early as possible to be eligible for the largest amount of awards.
Q: What if I still have a question?
A: Additional information can be found in the 2013-14 Counselors and Mentors Handbook on Federal Student Aid or by contacting us.
A: The U.S. Department of Education provides a glossary of financial aid vocabulary on its website. To access this glossary, click here.
Q: What is Student Aid?
A: According to the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "Student aid is money provided by the federal government or another entity, such as a school or a state government, to help students pay for college or career school. The U.S. Department of Education’s federal student aid programs deliver billions of dollars to students each year, representing a substantial federal commitment to provide financial assistance for postsecondary students. In 2013–14, the federal student aid programs will provide more than $150 billion in aid to more than 15 million people. "
Q: Where can I find funding?
A: Resources on preparing for college or career school, applying for aid, consumer protection, and more can be found here.
Q: What types of aid are available?
A: As stated in the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "the U.S. Department of Education (ED) offers three major types of aid. Grants are gift aid, and most do not have to be repaid unless an overpayment has resulted due to the student withdrawing from school before the planned end of the period of enrollment for which the grant was awarded. It is the school’s responsibility to inform the student whether any funds must be returned to ED. Loans must be repaid with interest. Federal Work-Study provides income from a part-time job."
For more detailed information, you may visit StudentAid.gov/types.
Q: What is Loan Default?
A: Loan Default is the failure to repay the loan according to the terms of the promissory note. Defaulting on a student loan will affect a borrower’s credit rating and could result in withholding of federal income tax refunds and denial of further federal student aid. Many students are only partially aware of their responsibility to repay student loans. Each student and their family are encouraged to learn as much as they can about the financial aid process, the responsibilities associated with borrowing money, and the consequences of failing to repay the loan according to its terms before signing the promissory note.
A one-page overview of borrower's responsibilities can be found here.
Q: What is State Aid?
A: According to the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "each state administers its own student aid programs, which might include scholarships, loans, fellowships for graduate school, or other types of aid. Students can contact their state education agency for more information; telephone numbers and Web addresses are listed at www.ed.gov/sgt.
Q: What is School Aid?
A: Many schools offer aid directly from their own funding. A FAFSA is required to be considered for this type of aid. To find out if the institution you are interested in applying to offers school aid, contact the individual school's website or directly with their financial aid department.
Q: Besides the types of aid mentioned above, what are some other possible sources of funding?
A: You may qualify for a private scholarship. There is millions of dollars available in the form of private scholarships for anything from merit based achievement and ethnic or racial heritage to special interests, hobbies, and community service awards. You are encouraged to search for and apply to as many of these scholarships you feel you are eligible to receive. The U.S. Department of Education provides a fairly comprehensive list of grants and scholarships here. Additionally, you are encouraged to use the Grants & Scholarships tab to access a number of other useful links and resources.
Q: How can I start saving for my child's education now?
A: The cost of attending a college or university is increasing each year. In order to better prepare for your son or daughter's future you may wish to consider the options available here.
Q: Who can get Federal Student Aid?
A: According to the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "Eligibility for most federal student aid programs is based on financial need rather than on academic achievement. To have his or her financial need determined, a student must complete and file a Free Application for Federal Student Aid (FAFSA).
Additionally, to be eligible for federal student aid, a student must:
- have a high school diploma or its equivalent, such as a General Educational Development (GED) certificate, or have been homeschooled and either (1) have a secondary school completion credential for homeschools as provided for under state law, or (2) if the state does not require the credential described above, have completed a secondary school education in a homeschool setting that qualifies as an exemption from the compulsory attendance requirements under state law;
- be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program;
- be a U.S. citizen or eligible noncitizen;
- have a valid Social Security number (with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau);
- make satisfactory academic progress in college or career school;
- sign certifying statements on the FAFSA such as agreeing to use federal student aid funds only for education expenses; and
- be enrolled at least half-time to be eligible for Direct Loan Program funds.
Note: This is not a comprehensive list of eligibility requirements. For detailed information on eligibility, see the Student Eligibility volume of the Federal Student Aid Handbook in the “Publications” section.
Q: Are international students eligible for aid?
A: International students must determine which schools actually offer aid to non-U.S. citizens. Most do not. Some schools may consider international students for their scholarships, but will not offer loans or other institutional aid. While it may be frustrating, the fact is that most colleges and universities will consider your ability to pay tuition as a determining factor in your admission.
Q: What is a TEACH Grant?
A: For students interested in working in a high-need field or in a school serving low-income students, grants are available to offset the cost of tuition. For more information, click here.
Q: How is financial need discovered?
A: As stated in the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "a student’s financial need is the difference between the student’s cost of attendance at the school and the Expected Family Contribution (EFC), an index number the school uses to determine how much aid the student can receive." For additional information on how financial aid packages are calculated, click here.
Q: What is included in the Cost of Attendance (COA)?
A: "The Cost of Attendance includes tuition and fees and an allowance for living expenses, such as room and board, books and supplies, miscellaneous personal expenses (including a reasonable allowance for renting or purchasing a personal computer), and transportation costs," as stated in 2013-14 Counselors and Mentors Handbook on Federal Student Aid.
Q: How much funding is available through each of the aforementioned programs?
A: For details and specific information regarding any of the aid programs listed above, we encourage you to read through the 2013-14 Counselors and Mentors Handbook on Federal Student Aid or to submit your question through our Contact tab.
Q: What is a PIN?
A: A PIN is a Personal Identification Number used to sign the FAFSA electronically. Parents are also encouraged to get a PIN. You can obtain a PIN by clicking here. Remember to keep your PIN safe and to never share it with anyone. If you forget your PIN, you can request it to be emailed you by clicking here.
Q: What documents do I need to complete the FAFSA?
A: As stated in the 2013-14 Counselors and Mentors Handbook on Federal Student Aid, "To complete the FAFSA, students (and their parents, if applicable) need their Social Security numbers, driver’s licenses (optional), federal income tax returns or estimated amounts (also see page 16), Form(s) W-2, current bank statements, and records of any stocks, bonds, and other investments and assets."
Q: When should I apply for the FAFSA?
A: The processing cycle lasts 18 months. Students should apply as early as possible to be eligible for the largest amount of awards.
Q: What if I still have a question?
A: Additional information can be found in the 2013-14 Counselors and Mentors Handbook on Federal Student Aid or by contacting us.