Financial Aid Terminology

Application for Federal Student Aid (FAFSA)--The application required to determine eligibility for Federal Student Aid, you can get from your high school, college, or university. A federal toll-free number can provide you with more information (800)4-Fed AID (800-433-3243). A FAFSA needs to be completed each year the student is enrolled in school.

Award Letter--The letter sent to a student from college or university's Office of Student Financial Assistance indicating how much financial aid and the types of financial aid the student qualifies for during an academic year.

Campus Based Financial Aid--Federal funds that are controlled by the college or university and are distributed to those students who qualify for financial assistance. The campus based programs include: Perkins Loan, College Work-Study and Supplemental Educational Opportunity Grant.

Grant--A sum of money given to a student based on financial need rather than academic or other achievement.

Loan--Money available for students to borrow. Typically, loans must be paid back with interest. Usually, student loans do not require repayment until the student has graduated or left school.

Need Analysis--The evaluation of a family's financial strength. The result of need analysis is an indication of the amount the family can contribute toward a college education.

Federal Parent Plus Loan for Undergraduate Student (PLUS)--A loan for parents who have dependent students in school. Parents can borrow a sum of money equal to the cost of education less financial aid received. Parents begin making payments 30-60 days after they receive the loan and must make payments of at least $50 per month. Parents may also take up to 10 years to pay back the loan.

Federal PELL Grant--A grant program from the Federal Government. The program dictates that if a student demonstrates financial need then that student is entitled as a U.S. citizen to some financial assistance in meeting the cost of a college education. (See also: Student Aid Report)

Federal Perkins--A low interest loan that students may borrow to assist in meeting the cost of receiving a college education.

Capitol Scholarship Program--A state-supported program of aid for academically qualified students. State scholar status is determined by SAT scores (1200) or a place in the top fifth of the high school class. Eligibility for a grant depends on financial need as shown on the FAFSA. The application is due before Feb. 15th of the senior year.

Cost of Education--Those costs both direct and indirect, associated with attendance at a college or university. Valid costs include: tuition, fees, room, board, books, supplies and a moderate amount for miscellaneous expenses (clothing, transportation, etc.)

Family Contribution--The amount of money that is expected from the family (via need analysis) to be contributed toward the cost of education. The family contribution consists of a contribution from the parents and a contribution from the student.

Family Education Loan Program--Students who are Connecticut residents or attending Connecticut colleges can borrow up to $20,000 per academic year. Applicant (student) and co-applicant must be credit worthy, and must have a minimum annual income of $20,000. Only interest is paid while the student is in school. See website.

Federal Supplemental Educational Opportunity Grant (SEOG)--A grant for students who demonstrate a high financial need.

Financial Aid--The moneys (either a grant, scholarship, loan or work opportunity) made available from a variety of sources (federal, state, institutional or private), to supplement the family's ability to meet the cost of education.

Financial Aid Formula--The formula the student Financial Assistance Office uses to determine student's financial need:

Cost of Education - Family Contribution = Financial Need

Financial Need--The estimated amount of money a student needs in order to meet the cost of attending college determined through the need analysis process.

Scholarship--A sum of money given to a student for some special skill, talent or academic achievement.

Pomperaug Local Scholarship Application--Many local organizations give scholarships to local students. Each organization has its own criteria for selection. They may take into account high achievement, intended major, financial need, extracurricular activities, or membership in their organization.

Self Help--Those things a student does personally to assist in meeting the cost of education such as working part-time or borrowing money.

Stafford Loan - Subsidized--Federally subsidized low interest loan made by a bank or credit union or savings and loan association, maximum of $2,625 first year, $3,500 for the second year, and up to $5,500 for each remaining year. Borrowers must show need through the FAFSA and/or the Profile. Repayment starts six months after graduation or leaving college.

Stafford Loan - Unsubsidized--Unsubsidized loan available to all students regardless of need. Interest on loan payable while student is attending college. All other features of the program are the same as the subsidized Stafford Loan.

Student Aid Report--The paper students receive from the Department of Education indicating their Federal Family Contribution and eligibility for a Pell Grant.