FAFSA and Other Daunting Acronyms


August 28, 2007 2:22 PM
by Administrator
   Financial Aid Acronym Overview While researching financial aid options you will probably feel overwhelmed by the amount of information that you receive. The good news is that you aren't alone. Students applying for financial aid are often overwhelmed by the terminology associated with it and the heavy use of acronyms within informative literature. Before reading the financial aid information provided in this article these are some the acronyms you should know:      FAFSA (Free Application For Student Aid)   FSA (Federal Student Aid)   EFC (Expected Family Contribution)   FPL (Federal Perkins Loan Program)   SEOG (Federal Supplemental Educational Opportunity Grants)   FWS (Federal Work Study)   PLUS (Parent Loans For Undergraduate Students)   COA (Cost of Attendance)   FFEL (Federal Family Education Loan)   LEAP (Leveraging Educational Assistance Partnership)   SSIG (State Student Incentive Grant)   CPS (Central Processing System)   SAR (Student Aid Report)  Where to begin.Feel as though you've been thrown into a den of ravenous acronyms and aren't sure where to begin applying for financial aid? Begin with FAFSA. To apply for an allotment of financial assistance from the federal government every student must submit their Free Application for Student Aid. After you submit your FAFSA it is distributed to the Central Processing System where several federal agencies like the Social Security Administration and the Department of Immigration, verify the information submitted. After your information has been evaluated the government determines your level of need and subsequently, how much aid you are eligible to receive and where the aid will come from. The most basic formula for determining financial need is the COA minus the EFC. The remaining amount is equal to the funding that the government determines to be in need of. FAFSA gives students and parents access to the FSA funds available. To clarify, FAFSA is not the financial aid itself, FAFSA is the form with which students request financial assistance from the government. Even if you are unsure of what aid you will receive from FAFSA, it is still a good idea to submit your form.Each year the funds available in the federal assistance programs fluctuate; more often than not the funds available are lower than the actual need for aid. The fluctuations in funding are caused by changes in our economy and college enrollment rates. The amount that each student is given, is influenced by the availability of funds for a given year.Behind the Scenes. When you submit your FAFSA form, the government decides exactly how much aid you qualify for and then determines where the aid will come from. Typically, the aid is drawn from a combination of assistance programs and expects that either the students or the parents also have the option of taking out a loan. A typical financial aid package may be comprised of a Pell grant, a state need-based grant, a SEOG, FWS, a direct loan and a Perkin's Loan. Students are not obligated to return the money received in the form of grants, however, any funds supplied by the FSL must be repaid.Federal Student Loan Programs. You can take advantage of FSA programs by receiving assistance from FFEL or a Direct Loan, whichever is designated by the university you attend.FFEL program relies on a private lender, such as a bank or credit union, to subsidize the loan. A Direct Loan is different; the government is responsible for subsidizing such loans directly. For the students that receive one of these loans, the only notable difference is where the money is returned to.PELL Grants. The best thing about a PELL grant is that it is essentially a gift from the federal government. Any student who has an unmet financial need qualifies to receive assistance from this program. The size of the grant is contingent upon three factors: the cost of attendance, enrollment status, and the EFC. Though a part-time student will receive a lower grant than a student with full-time status, he is still eligible for assistance. Typically, PELL grants are only available to undergrads that do not already have a degree.State Contributions. LEAP is vehicle through which your state provides financial assistance for students in need. This program was designed so that the financial contributions made by your state will be matched by the federal government. The primary role of this program is to provide grant money that is accessed through campus based programs.   Campus Based Financial Aid Programs      Federal Supplemental Educational Opportunity Grants. These grants are typically awarded to students with a considerable need for financial aid. The amounts awarded vary from $100 to $4000 dollars per year. This amount depends on the students need and the funding available for a given academic year.   Federal Perkins Loan Program. This program is also designed for students with an exceptional need for financial aid and is available to undergraduates and graduates alike. Interest does not accumulate while the recipient of the loan is in school and repayment of the loan is delayed until nine months after graduation.   Federal Work Study. Also a program that can be relied upon by undergrads and grads alike. Students who participate in this program have the opportunity to earn money towards expenses related to their education. Typically these students work about 10 hours a week and earn at least the minimum wage.  There is a notable difference between federal aid and the assistance provided by the three campus-based programs. If the federal government determines unmet need in a FAFSA applicant, that student gains access to any available aid offered through federal programs. This does not mean however, that the student will be eligible for any of the federal assistance administered by the college or university through a campus based program. When you submit your FAFSA form, the government does not calculate the equity of your parent's homes into the EFC, but universities do. This means that many students who the government deems eligible for financial aid are less likely to receive assistance through a campus based program. The difference in these calculations is used to separate the needy students from the extremely needy students.Exclusions. . If you are over the age of 24, married, or have children, you are classified as independent. Federal Student Aid was designed to help send dependents without a network of resources to college. If you don’t qualify because of independent status, don't be discouraged as there are other forms of student loans available and scholarships that can be used toward your tuition as well. Additionally, if you carry veteran status or are a ward of the state you are excluded from the FSA program. Keep in mind that drug abuse can impact your eligibility to receive aid. Any drug related convictions will disqualify you from the program unless you have undergone rehabilitation therapy in a state approved institution.College is expensive, Scholarships.com is completely free. Pay for your college education with as much free college scholarship money as possible. By applying to all the awards you qualify for, you can be sure to not miss a single opportunity in paying for your college expenses - including tuition, fees, room and board. Get matched to  college scholarships instantly and start applying today by conducting a free college scholarship search at Scholarships.com.
\r\n
Financial Aid Acronym Overview
\r\nWhile researching financial aid options you will probably feel overwhelmed by the amount of information that you receive. The good news is that you aren't alone. Students applying for financial aid are often overwhelmed by the terminology associated with it and the heavy use of acronyms within informative literature. Before reading the financial aid information provided in this article these are some the acronyms you should know:\r\n
    \r\n
  • FAFSA (Free Application For Student Aid)
  • \r\n
  • FSA (Federal Student Aid)
  • \r\n
  • EFC (Expected Family Contribution)
  • \r\n
  • FPL (Federal Perkins Loan Program)
  • \r\n
  • SEOG (Federal Supplemental Educational Opportunity Grants)
  • \r\n
  • FWS (Federal Work Study)
  • \r\n
  • PLUS (Parent Loans For Undergraduate Students)
  • \r\n
  • COA (Cost of Attendance)
  • \r\n
  • FFEL (Federal Family Education Loan)
  • \r\n
  • LEAP (Leveraging Educational Assistance Partnership)
  • \r\n
  • SSIG (State Student Incentive Grant)
  • \r\n
  • CPS (Central Processing System)
  • \r\n
  • SAR (Student Aid Report)
  • \r\n
\r\nWhere to begin.Feel as though you've been thrown into a den of ravenous acronyms and aren't sure where to begin applying for financial aid? Begin with FAFSA. To apply for an allotment of financial assistance from the federal government every student must submit their Free Application for Student Aid. After you submit your FAFSA it is distributed to the Central Processing System where several federal agencies like the Social Security Administration and the Department of Immigration, verify the information submitted. After your information has been evaluated the government determines your level of need and subsequently, how much aid you are eligible to receive and where the aid will come from. The most basic formula for determining financial need is the COA minus the EFC. The remaining amount is equal to the funding that the government determines to be in need of. FAFSA gives students and parents access to the FSA funds available. To clarify, FAFSA is not the financial aid itself, FAFSA is the form with which students request financial assistance from the government. Even if you are unsure of what aid you will receive from FAFSA, it is still a good idea to submit your form.

Each year the funds available in the federal assistance programs fluctuate; more often than not the funds available are lower than the actual need for aid. The fluctuations in funding are caused by changes in our economy and college enrollment rates. The amount that each student is given, is influenced by the availability of funds for a given year.

Behind the Scenes. When you submit your FAFSA form, the government decides exactly how much aid you qualify for and then determines where the aid will come from. Typically, the aid is drawn from a combination of assistance programs and expects that either the students or the parents also have the option of taking out a loan. A typical financial aid package may be comprised of a Pell grant, a state need-based grant, a SEOG, FWS, a direct loan and a Perkin's Loan. Students are not obligated to return the money received in the form of grants, however, any funds supplied by the FSL must be repaid.

Federal Student Loan Programs. You can take advantage of FSA programs by receiving assistance from FFEL or a Direct Loan, whichever is designated by the university you attend.

FFEL program relies on a private lender, such as a bank or credit union, to subsidize the loan. A Direct Loan is different; the government is responsible for subsidizing such loans directly. For the students that receive one of these loans, the only notable difference is where the money is returned to.

PELL Grants. The best thing about a PELL grant is that it is essentially a gift from the federal government. Any student who has an unmet financial need qualifies to receive assistance from this program. The size of the grant is contingent upon three factors: the cost of attendance, enrollment status, and the EFC. Though a part-time student will receive a lower grant than a student with full-time status, he is still eligible for assistance. Typically, PELL grants are only available to undergrads that do not already have a degree.

State Contributions. LEAP is vehicle through which your state provides financial assistance for students in need. This program was designed so that the financial contributions made by your state will be matched by the federal government. The primary role of this program is to provide grant money that is accessed through campus based programs.\r\n
Campus Based Financial Aid Programs
\r\n
    \r\n
  • Federal Supplemental Educational Opportunity Grants. These grants are typically awarded to students with a considerable need for financial aid. The amounts awarded vary from $100 to $4000 dollars per year. This amount depends on the students need and the funding available for a given academic year.
  • \r\n
  • Federal Perkins Loan Program. This program is also designed for students with an exceptional need for financial aid and is available to undergraduates and graduates alike. Interest does not accumulate while the recipient of the loan is in school and repayment of the loan is delayed until nine months after graduation.
  • \r\n
  • Federal Work Study. Also a program that can be relied upon by undergrads and grads alike. Students who participate in this program have the opportunity to earn money towards expenses related to their education. Typically these students work about 10 hours a week and earn at least the minimum wage.
  • \r\n
\r\nThere is a notable difference between federal aid and the assistance provided by the three campus-based programs. If the federal government determines unmet need in a FAFSA applicant, that student gains access to any available aid offered through federal programs. This does not mean however, that the student will be eligible for any of the federal assistance administered by the college or university through a campus based program. When you submit your FAFSA form, the government does not calculate the equity of your parent's homes into the EFC, but universities do. This means that many students who the government deems eligible for financial aid are less likely to receive assistance through a campus based program. The difference in these calculations is used to separate the needy students from the extremely needy students.

Exclusions. . If you are over the age of 24, married, or have children, you are classified as independent. Federal Student Aid was designed to help send dependents without a network of resources to college. If you don’t qualify because of independent status, don't be discouraged as there are other forms of student loans available and scholarships that can be used toward your tuition as well. Additionally, if you carry veteran status or are a ward of the state you are excluded from the FSA program. Keep in mind that drug abuse can impact your eligibility to receive aid. Any drug related convictions will disqualify you from the program unless you have undergone rehabilitation therapy in a state approved institution.

College is expensive, Scholarships.com is completely free. Pay for your college education with as much free college scholarship money as possible. By applying to all the awards you qualify for, you can be sure to not miss a single opportunity in paying for your college expenses - including tuition, fees, room and board. Get matched to college scholarships instantly and start applying today by conducting a free college scholarship search at Scholarships.com.

Posted Under : FAFSA

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 

    As we celebrate Memorial Day by honoring and remembering those who died while serving our country, we explore what it means to be American. In light of this, we've come up with a list of scholarships for Americans, based on a variety of criteria. Here you'll find free college scholarships for American citizens, college scholarships for ethnic-Americans, free college scholarships for veterans/military scholarships, and more! If you're proud to be an American and believe in the American dream – whatever that may entail, then check out these patriotic college scholarships for 2017 and help fund your American dream:

Scholarships for the American Dream

May 26, 2017 10:01 AM
by Susan Dutca
As we celebrate Memorial Day by honoring and remembering those who died while serving our country, we explore what it means to be American. In light of this, we've come up with a list of
The U.S. Department of Education will offer a contract to a single loan servicer to manage its $1.2 trillion student loan portfolio, which contains over 43 million borrowers. Instead of keeping its current contract with four different services, the ED will award Navient, GreatNet or the Pennsylvania Higher Education Assistance Agency (PHEAA) the contract. What exactly does this mean for borrowers?

Department of Education Seeking Single Loan Servicer

May 23, 2017 10:23 AM
by Susan Dutca
The U.S. Department of Education will offer a contract to a single loan servicer to manage its $1.2 trillion student loan portfolio, which contains over 43 million borrowers. Instead of keeping its
Roughly half of foster youth graduate high school or receive a high school equivalency diploma by age 19, and less than four percent of foster children earn a bachelor's degree. Getting into college and paying for it is already difficult, so how do foster youth in higher education overcome seemingly impossible obstacles?

Finding Foster Youth College Scholarships on the Web

May 8, 2017 4:27 PM
by Susan Dutca
Roughly half of foster youth graduate high school or receive a high school equivalency diploma by age 19, and less than four percent of foster children earn a bachelor's degree. Getting into college

    May 1st is National College Decision Day! There are so many colleges from which to choose and a lot of students are applying to several schools, some even more than a dozen. Naturally, the cost of college will be a major deciding factor for many of you and continuing to find outside scholarships could be very helpful to most. Students are wary of taking out too many student loans and possibly even forego a more prestigious school in favor for a less expensive college if they fear they won't able to afford the tuition without taking on enormous student debt. One way to avoid doing this and help make college affordable is by applying to free college scholarships. There's no reason you shouldn’t be able to attend your dream college - you still have time to pocket some free college scholarship money before heading off to college!

National Decision Day 2017 College Scholarships

May 1, 2017 4:13 PM
by Susan Dutca
May 1st is National College Decision Day! There are so many colleges from which to choose and a lot of students are applying to several schools, some even more than a dozen. Naturally, the cost

    Being a college student can be daunting, period. With the surplus in coursework, responsibilities and stressing over college debt and expenses, college students are high-anxiety all year round...not just around finals time. On top of that, some student-parents must manage going to, and paying for college while raising and paying for their children. Fortunately, there are great financial aid resources and college scholarships reserved for students who have families; including students with dependent children, single mom scholarships, and single dad scholarships! With Mother's Day right around the corner, indulge in these exclusive free college scholarships- for your accomplishments as a student and mom.

College Scholarships for Moms

April 21, 2017 4:06 PM
by Susan Dutca
Being a college student can be daunting, period. With the surplus in coursework, responsibilities and stressing over college debt and expenses, college students are high-anxiety all year
New York's free college scholarship program is being met with heavy criticism as more details have emerged and it is set to start in fall of 2017. Though lauded for being the first of its kind to offer free college tuition at public colleges and universities, many European countries already offer free college, regardless of family income level...and at the tax payers' expense.

New York Free College Scholarship Program Not So "Free"?

April 18, 2017 11:23 AM
by Susan Dutca
New York's free college scholarship program is being met with heavy criticism as more details have emerged and it is set to start in fall of 2017. Though lauded for being the first of its kind to