Explanation of Financial Aid Terms
Expected Family Contribution - Expected family contribution (EFC) is calculated based upon a federal formula using the information you submitted on the Free Application for Federal Student Aid (FAFSA). It represents you and your family’s ability to help pay your educational expenses during the current year in college. You may be able to take out an unsubsidized Stafford Loan, or your parent may be able to borrow a PLUS loan, to cover this amount.
Each of the following loan and grant opportunities is covered in depth at
Financial Aid Opportunities.
Federal Pell Grant - While this is a close estimate of how much your Pell Grant may be, the actual amount may be different. If you already have a bachelors degree, you do not qualify for a Pell Grant.
Other Financial Aid and/or Student Loans (including scholarships, other grants, work study, savings plans, Federal Perkins Loan, subsidized and unsubsidized Stafford Loans, and/or other aid) - College savings plans that your parent or someone else invested for you would contribute as "other aid" if used during this year.
While we cannot tell you exactly what other types of aid you might receive, we have estimated the total amount that you will need. To find out what other financial aid you are eligible to receive, you will have to complete and file the FAFSA. The college will determine your eligibility for each type of financial aid. It is important that you apply as early as possible since many types of financial aid have limited funding (the first day that the FAFSA is available for the upcoming academic year is January 1 of each year).
Fees may be deducted from the proceeds to you from any federal loan. These fees cover the cost of the loan program and for insuring your loan. Be sure to study your loan terms and conditions.
Alternative educational loans (private loans from banks and other lenders which are not federal aid programs) - These loans are not included under "Other Federal Aid." Alternative loans normally require a credit qualification and do not have the same interest rates, deferments and benefits of federal loans. Federal student loans are almost always less expensive to repay than private loans.
Borrowing for Your Future Lifestyle - Only borrow what you absolutely need. Student loans are an investment in your education, and you want to make sure your loan debt will not be overwhelming when you graduate. Student loan payments are a long-term commitment. Be a wise borrower.
PLUS Loan - The PLUS loan is one that your parents or stepparents take out for your education. Again, we cannot tell you the exact amount, but your parents can borrow what your Pell Grant and other financial aid or student loans don't cover.
If your parents do not qualify for a PLUS Loan, you may be able to apply for an additional unsubsidized Stafford Loan. Check with the financial aid office at your college to determine if you are eligible.
Fees may be deducted from the proceeds given to you of any PLUS loan your parent borrow. These fees cover the cost of the loan program and for insuring the loan. Your parent should study the loan terms and conditions before accepting the loan.
Estimated Costs Not Covered by Financial Aid (including student and/or parent loans) - All of your costs may not be covered by financial aid. The financial aid office will try to offer you financial aid to cover as much of your Cost of Attendance (COA) as possible. However, depending on the time you complete the FAFSA, your EFC, available funding and other variables, they may not be able to offer the entire amount.
You must complete the Free Application for Federal Student Aid (FAFSA) and apply to the school of your choice to really find out the exact amounts and types of
financial aid you are eligible to receive.