Financial Aid Glossary/Acronyms
CDS = Common Data Set is a document found on each college’s website which contains admission statistics for enrolled students as well as other information such as class size and financial aid data. The institutional reporting department at each school completes this document annually.
COA = Cost of Attendance is the total cost the family must pay each year to attend college.
COA is comprised of direct costs paid to the school (tuition, fees, room and board) and indirect costs (travel, personal expenses, etc.)
Contributor = Contributor is a new term starting with the 2024–25 FAFSA. A contributor is anyone (may include the student’s biological or adoptive parents, the spouse of the student’s parent, or student’s spouse) who is required to provide information on the FAFSA form, sign the FAFSA form, and provide consent and approval to have their federal tax information transferred directly from the IRS into the form.
Educational Loan = Money borrowed from the federal government, a college or university, or a private source like a bank or financial institution to pay for educational expenses and must be paid back with interest.
EFC = Expected Family Contribution (term not used by FAFSA any more, CSS schools do use this terminology)
FA = Financial Aid
FAFSA = Free Application for Federal Student Aid
Federal Loan = Also known as the Direct Loan Program, which allows eligible students and parents to borrow directly from the U.S. Department of Education at participating colleges or universities. Federal student loans include Direct Subsidized, Direct Unsubsidized and the Direct PLUS programs for parents of dependent students and graduate or professional students.
Federal Direct Subsidized Student Loan = A Direct Subsidized Loan is an undergraduate federal student loan based on financial need and offers students a reduced, fixed interest rate and flexible repayment terms. Interest is subsidized, meaning it does not accrue to the borrower, while in an in-school, grace, or deferment period. Annual and aggregate limits apply.
Federal Direct Unsubsidized Student Loan = An unsubsidized loan offers students a fixed interest rate and flexible repayment terms. It is not based on financial need. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins. Annual and aggregate limits apply.
Federal Direct Parent Plus Loan = Direct Parent PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay for education expenses. Parents must pass a credit check for adverse credit history to qualify for PLUS loans.
Financial Aid Offer or Package = A financial aid offer is a document sent by a postsecondary institution to a student that outlines the amounts and details of the financial aid being offered to the student, which may include scholarships, grants, loans, employment, or other forms of financial assistance to pay for college expenses. The format of these offers can vary widely.
Financial Need = The student’s COA minus the student’s SAI/EFC
FM = Federal Methodology. The formula the federal government uses to calculate a student’s eligibility for federal student aid (based on FAFSA)
FSEOG or SEOG= Federal Supplemental Educational Opportunity Grant
FWS = Federal Work Study
Grants and Scholarships = Any money provided to the student that they do not have to repay.
IM = Institutional Methodology. IM is a proprietary formula used by colleges to measure a family’s ability to pay for college. It is a different calculation than the federal methodology used on FAFSA.
NCP = Non-Custodial Parent
Net Price or Net COA = The total COA minus all grants and scholarships. The net price is what the student/family is expected to pay and can be funded by savings, current income, loans. External scholarships can fund the gap, but each college will have specific policies regarding how any of these dollars impact the college’s financial aid package.
NPC = Net Price Calculator, available on each college’s website
Need-Based Aid = Financial aid provided to students based on their financial situation as determined by FAFSA (and CSS Profile where required.) Need-based aid can include grants, scholarships, work-study, and low interest loans such as the federal direct subsidized loan.
OOS = Out-of-State
Pell Grant = The Pell Grant is a federal grant program designed to assist undergraduate students from low and moderate income households to pay for college. The award amount is based on the cost of the institution, SAI, and enrollment status, and is subject to an aggregate limit.
SAI = Student Aid Index (FAFSA result, replaces EFC)
UGMA = Uniform Gifts to Minors Act
UTMA = Uniform Transfers to Minors Act
Verification = A federally mandated process to confirm the accuracy of data provided by selected applicants on the FAFSA. To complete the verification process, the student, their parent(s), or spouse, if applicable, are required to provide certain documents to the school for review. If the documentation the student provides the institution doesn’t match what was reported on the FAFSA, verification can result in changes to the student’s financial aid eligibility, and/or financial aid offers.