Federal Pell Grants: This is a need-based federal grant that does not require paying back but you must qualify for it by U.S. Department of Education standards.

Federal SEOG Grant (Supplemental Education Opportunity Grant): Another need-based federal grant that does not require paying back but you must qualify for it by government standards.

Tennessee TSAA Grant (Tennessee Colleges only): Another need-based grant that does not require paying back but you must qualify for it by government standards. Must be a Tennessee resident.

Tennessee Hope Scholarship (Tennessee Colleges only): A non need-based lottery scholarship that is merit-based for every qualifying senior in the state who is going to an in-state college. Visit www.collegepaystn.com for more information.

Federal Stafford Loans: Student loan through the Federal Government. A Subsidized loan means the interest is deferred, An Unsubsidized loan means interest accrues while you are still in school.

Perkins Student Loan: Need-based Student Loan. Funds are limited.

Parent Plus Loans: Credit-based Parent Loan. Repayment begins immediately.

College Scholarship: May or may not require the FAFSA - depends on the school.

Work study: Federal Work Study is need-based. Campus Work Study may or may not be need-based. Varies school to school.

Financial Aid Dictionary of Terms

Budget. The estimated cost of attendance at a college or university. The cost usually includes tuition and fees (including loan fees), books and supplies, room and board, personal expenses, and transportation. Other living expenses may be included.

College Board/CollegeCredit® Education Loans. An array of government and private loans sponsored by the College Board. The Federal Stafford Loan, the Federal Parent Loan for Undergraduate Students, and privately sponsored Signature Student Education and Private Parent loans are available.

College Scholarship Service® (CSS®). See CSS/ Financial Aid PROFILE®.  CSS/Financial Aid PROFILE®. A Web-based application service offered by the College Board and used by some colleges, universities, and private scholarship programs to award their private financial aid funds. Students register for and complete the PROFILE at the College Board Web site: www.collegeboard.com. CSS provides a customized application for each registrant, based on the student's registration information and the requirements of the colleges and programs to which she or he is seeking aid. Students complete the online application and supplements, if required. CSS processes and reports the application data to institutions. CSS/Financial Aid PROFILE is not a federal form and may not be used to apply for federal student aid. Students pay a fee to register for PROFILE, and for the reports sent to institutions and programs that use it.

Direct loan program. See William D. Ford Federal Direct Loan Program.

Expected family contribution (EFC). The total amount students and their families are expected to pay toward college costs from their income and assets for one academic year. The amount is derived from a need analysis of the family's overall financial circumstances. The Federal Methodology is used to determine a student's eligibility for federal and state student aid. Colleges and private aid programs may use a different methodology to determine eligibility for nonfederal financial aid.

FAFSA on the Web. An electronic option for completing the Free Application for Federal Student Aid www.fafsa.ed.gov.

Family Educational Rights and Privacy Act (FERPA). Federal law that protects the privacy of student education records. The law applies to all schools that receive funds under an applicable program of the U.S. Department of Education. FERPA gives parents certain rights with respect to their children's education records. These rights transfer to the student when he or she reaches the age of 18 or attends a school beyond the high school level.

Federal code number. A six-digit number (formerly known as the Title IV number) that identifies a specific college to which students want their Free Application for Federal Student Aid form submitted.

Federal Family Education Loan Program (FFELP). The subsidized and unsubsidized Federal Stafford Loan, Federal Parent Loan for Undergraduate Students, and Federal Loan Consolidation programs. Funds for these programs are provided by lenders, and the loans are guaranteed by the federal government.

Federal Parent Loan for Undergraduate Students (PLUS). A program that permits parents of undergraduate students to borrow up to the full cost of education, less any other financial aid the student may have received. The interest rate is variable and is reset each July.

Federal Pell Grant Program. A federally sponsored and administered program that provides need-based grants to undergraduate students. Congress annually sets the dollar range. As of 2006, a Pell Grant cannot exceed $4,050 per year. Eligibility for Pell Grants is based on a student's expected family contribution, the total cost of attendance at the college, and whether the student is attending the college full-time or part-time.

Federal Perkins Loan Program. A federally funded campus-based program that provides low-interest loans, based on need, for undergraduate study. The combined cumulative total of loan funds available to an individual for undergraduate and graduate education is $40,000. Repayment need not begin until completion of the student's education, and may be deferred for limited periods of service in the military, Peace Corps, or approved comparable organizations. The total debt may be forgiven by the federal government if the recipient enters a career of service as a public health nurse, law enforcement officer, public school teacher, or social worker.

Federal Stafford Loan. A program that allows students to borrow money for educational expenses from banks and other lending institutions (and sometimes from the colleges themselves). Subsidized Stafford loans are offered by colleges based on need. The federal government pays the interest on subsidized loans while the borrower is in college. Unsubsidized Stafford loans are non-need ­based; anyone may apply for one regardless of their ability to pay for college. The interest on unsubsidized loans begins accumulating immediately, so the amount borrowers repay after graduation will be more than what they originally borrowed. For both programs, the amounts that may be borrowed depend on the student's year in school, and the interest rates are variable.

Federal Work-Study Program. A form of financial assistance that allows students to work in on- or off-campus employment sites while attending school. The wages earned are used to help pay the student's educational costs for the academic year. Job opportunities vary from campus to campus. The time commitment is usually 10 to 15 hours a week.

Free Application for Federal Student Aid (FAFSA). A form completed by all applicants for federal student aid. The FAFSA is available on the Web at www.fafsa.ed.gov . In many states, completion of the FAFSA is also sufficient to establish eligibility for state ­sponsored aid programs. There is no charge to students for completing the FAFSA. Forms may be filed any time after January 1 of the year for which one is seeking aid.  

Grants.  A grant is “free” need-based financial assistance. That is provided in a financial aid package for those w ho qualify for grant money. It is money that you do not pay back to the government or the college.

HOPE education tax credit. A federal income tax credit of as much as $1,500 per dependent student annually. It is available to eligible taxpayers based on out-of-pocket tuition and fee expenditures, according to income eligibility guidelines.

HOPE and HOPE ACCESS Scholarship.  Lottery funded scholarships for TN residents. Annual amount of $4,000 for four-year institutions is awarded to high school graduates with a minimum of 21 ACT or 980 composite SAT or a 3.0 GPA. The Hope Access is a supplement to the basic HOPE and is given for higher tests scores or GPA’s. www.CollegePaysTN.com

Meet 100% of demonstrated need.  Colleges that financial aid packages that meet the entire need of the student. There are no gaps whatever been the college’s package and the determined need.

Need-based financial aid. Financial aid (scholarships, grants, loans, or work-study opportunities) given to students who have demonstrated financial need, calculated by subtracting the student's expected family contribution from a colleges total costs. The EFC is derived from a need analysis of the family's overall financial circumstances, using either the Federal Methodology to determine a student's eligibility for federal student aid, or the Institutional Methodology to determine eligibility for nonfederal financial aid.

Need blind. A college policy of determining admission without regard to a student's financial need or financial aid status.

Need conscious/aware. A college policy that considers student need or financial aid status for at least some portion of its applicant pool, usually those applications on the edge of admit or waitlist in committee.

Parents' contribution. The amount a student's parents are expected to pay toward college costs from their income and assets. It is derived from need analysis of the parents' overall financial situation. The parents' contribution and the student's contribution together constitute the total expected family contribution.

Parent Loan for Undergraduate Students. See Federal Parent Loan for Undergraduate Students.

Personal Identification Number (PIN). This number-sometimes determined by an institution, sometimes self-selected - is used to protect the student's personal and financial security when performing electronic transactions and completing electronic forms. The PIN acts as an electronic signature and therefore should not be shared with anyone. Both FAFSA and the NCAA Clearinghouse require students to have PINs before registering through their Web sites.

 

PROFILE Online. An electronic application option available for students required to complete the CSS/Financial Aid PROFILE.  https://profileonline.collegeboard.com

Scholarship or grant. A type of financial aid that doesn't have to be repaid. Grants are often based on financial need. Scholarships may be based on need, on need combined with other criteria, or solely on other criteria, such as academic achievement, artistic ability, and talent in the performing arts.

Section 529 plans. State-sponsored college savings programs that are commonly referred to as "529 plans" after the section of the Internal Revenue Code that provides the plan's tax breaks.

Self-help. Student financial aid, such as loans and jobs that requires repayment or employment.

Student Aid Report (SAR). A report produced by the U.S. Department of Education and sent to students in response to their having filed the Free Application for Federal Student Aid. The SAR contains information the student provided on the FAFSA as well as the federally calculated result, which the financial aid office will use in determining the student's eligibility for the Federal Pell Grant and other federal student aid programs.

Student expense budget. A calculation of the annual cost of attending college that is used in determining student's need. Student expense budgets usually include tuition and fees, books and supplies, room and board, personal expenses, and transportation. Sometimes additional expenses are included for students with special education needs, students who have a disability, or students who are married and/ or have children.

Student's contribution. The amount the student is expected to pay toward college costs from the student's income, assets, and benefits. The amount is derived from need analysis of resources. The student's contribution and the parents' contribution constitute the total family contribution, which, when subtracted from the student budget, equals financial need. Generally, students are eligible for financial aid equal to their financial need.

Subsidized loan. A loan awarded to a student on the basis of financial need. The federal government pays the borrower's accrued interest during some significant periods, such as during the time the student is in school, thereby subsidizing the loan.

Taxable income. Income earned from wages, salaries, and tips, as well as interest income, dividends, alimony, estate or trust income, business or farm profits, and rental or property income.

Tennessee Education Lottery Scholarship Program. State sponsored program for Tennessee residents attending Tennessee institutions.  Provided a variety of scholarship, grant and loan resources.  The TN HOPE and HOPE ACCESS are among the eleven scholarships offered.  General qualification requirements include:   (1) state residency; (2) immune ACT or SAT scores or minimum GPA, (#) enrollment in approved Tennessee college or university within 16 months of high school graduation.  Upon graduation the student’s high school registrar must submit the required documentation to TELSP.  For complete information visit www.CollegePaysTN.com 

William D. Ford Federal Direct Loan program. A program that allows participating schools to administer subsidized and unsubsidized Federal Stafford Loans and Federal Parent Loan for Undergraduate Students programs directly to student and parent borrowers. Direct loans have mostly the same terms and conditions as those under the Federal Family Education Loan Program loans. Funds for these programs are provided by the federal government.

Work-study. An arrangement by which a student combines employment and college study. The employment may be an integral part of the academic program (as in cooperative education and internships) or simply a means of paying for college as in the Federal Work-Study Program.