Definitions / Common Phrases

Below you will find a list of common terms and phrases used in the financial aid process. This is not an exhaustive list but has been put together to help students navigate their way through the process of applying for federal and state financial aid.

FAFSA: Free Application for Federal Student Aid - The federal application that students must complete in order to receive federal and state financial aid. This application must be renewed for each academic year.

EFC: Expected Family Contribution - Index that is derived from the FAFSA and is used to determine financial need.

SAR: Student Aid Report - A report that students receive after submitting their FAFSA. Applicants that file paper applications will receive a SAR in the mail after the federal processor has reviewed your application. Online applicants will be able to access their SAR online.

Financial Aid - A combination of grants, federal loans and work study awarded based on financial need. Not to be confused with scholarships which are awarded based on academic merit and not necessarily financial need.

Federal Processor - Generic term for Department of Education processing center, they receive FAFSA’s and  calculates the Expected Family Contribution, performs matches with the Social Security Administration, Office of Veteran Affairs and transmit student SAR information to schools.

Need Based Aid - Financial assistance awarded based on financial need. (See Pell grant)

Non-need based aid - Financial assistance awarded based on eligibility and not necessarily on financial need. (See: Unsubsidized Stafford loan)

Priority Date - Date used to give financial aid applicants priority when awarding funds. Students who apply by this date will usually have been notified of their financial aid awards prior to the billing for the semester in which they are enrolling.

Federal Verification - process by which the information submitted in the FAFSA is reviewed for correctness. Approximately 30% of all aid applicants are selected for verification each year.

SAP: Satisfactory Academic Progress - Policy which states that in order for students to retain their financial aid eligibility satisfactory academic progress towards a degree must be made.

Return of Title IV Funds - Refers to a calculation that is made for students who completely withdraw from classes during a semester in which they received federal aid.

Alternative Student Loans - A private educational loan used to supplement the Stafford and/or Parent Plus loan. Interest rates and repayment terms are determined by the lender rather than the federal government.

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