Financial Aid Terms TERM DEFINITION MORE INFO Direct Subsidized Loans Federal student loans that are made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you are enrolled in school (must be at least half-time), for the first 6 months after you leave school (known as a grace period), and during a period of deferment (postponement of loan payments). More Information Direct Unsubsidized Loans Federal student loans available to both undergraduate and graduate students with no requirement to demonstrate financial need. The university/college determines the amount that can be borrowed. You are responsible for paying the interest during all periods. Interest not paid during grace periods, schooling, deferment, or forbearance periods will accrue interest. More Information Expected Family Contribution (EFC) A number that is used to determine eligibility for federal student aid. This number results from the financial information provided in the FAFSA. The expected family contribution is reported on the Student Aid Report. The FAFSA4caster can provide the estimated EFC. More Information FAFSA The free application for federal student aid. Federal Student Aid, a part of the U.S. Department of Education, is the largest provider of student financial aid in the nation. The office of Federal Student Aid provides grants, loans, and work-study funds for college. More Information FAFSA4caster A free financial aid calculator that provides an early estimate of your eligibility for federal student aid. This can be used as a tool to help plan for college. More Information Federal Work-Study Program This program provides part-time jobs for undergraduate and graduate students with financial need. This is available to full or part time students while enrolled in school. The jobs are often related to the student's coursework. Earnings and work hours are dependent on your skills, class schedule, academic progress, financial need, when you apply, the work required for the position, and the school's funding level. More Information Financial Aid Money that can assist in paying for college or a career school. There are different types of financial aid from the following sources: U.S. federal government, home state, college, a nonprofit or private organization. Some forms that financial aid include: grants, loans and work-study. More Information Grant Grants are need-based and can come from the state or federal government, college or career school, or a private or nonprofit organization. In some circumstances the grant will need to be re-paid if certain conditions are not fulfilled. Some of the following federal grants include the Pell grants, supplemental educational opportunity grants (FSEOG) and the teacher education assistance for college and higher education (TEACH) grant. More Information Loan A loan is money that you borrow and must pay back with interest. If you decide to take out a loan make sure you understand the terms and conditions. Student loans can come from a variety of sources including a bank or financial institution, private sources, and the federal government. Loans from the federal government are often referred to as federal student loans. More Information Scholarship Scholarships are merit-based and can come from the state or federal government, college or career school, or a private or nonprofit organization. They are awarded based on a student's skill or ability and do not need to be repaid. For example a merit based scholarship may be awarded based on a student's academic achievements. More Information
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