Family Contribution
An amount calculated according to a standard need analysis formula that represents how much a family will be expected to pay toward a child's college education. The figure includes parental contribution and the student's assets and earnings during college.

Family Financial Statement (FFS)
The form for information on a family's assets, income and liabilities that is used for evaluating student need (American College Testing Program).

Financial Aid office
The office at a school of higher education that is responsible for evaluating students' eligibility for aid and awarding the available funds.

Financial Aid Package
This is the total amount of financial aid a student receives. May include public and/or private loans, grants, scholarships, a work/study program.

Financial Award Letter
Notification from a financial aid officer or college that tells how much aid is being offered to student. The letter also explains how financial need was determined.

Grade Point Average
A system of scoring a student's academic achievement used by high schools, colleges, and universities. Usually computed on a scale using the following point to grade assignments: A-4, B-3. C-2, D-1, E and F-O.

Grants
Awards made for educational purposes which do not have to be paid back. Usually given on the basis of need.

Guaranteed Student Loan (ESL)
Now referred to as Stafford Loans.

Half-time Study
Refers to enrollment status (academics) in a college or university. Half-time study is used as an eligibility requirement for federal financial aid awards and loans.

Independent Student
A student who meets the federal criteria for being financially self-supporting. Used in determining student's financial need.

Interest
The fee charged by lenders for lending or borrowing money.

Loan
Borrowed money that must be repaid. Long term loans with low interest are provided by both colleges and outside sources, such as the federal government or private institutions. Short-term loans usually come from college funds.

National Merit Scholarships
A national awards program for students who are selected on the basis of PSAT/NMSQT scores and other criteria.

Need Analysis
The method used to determine how much a family will be expected to contribute to the cost of education for college. Usually based on the assumption that the student and his/her parents will have the major responsibility for college costs according to their ability.

Open Admission
A policy used by many institutions (especially public schools) that allows all applicants to be accepted without regard to the traditional criteria for acceptance, such as class rank, grades, test scores.

Pell Grants
This is the largest federally funded aid program. This is a college-based program, meaning the funds are actually disbursed by the colleges to all applying students who qualify for aid. An outright gift program, with no strings attached.

Preliminary Scholastic Aptitude Test/National Merit Scholarship Qualifying Test (PSAT/NMSQT)
A short version of the SAT that gives a student a preview sample of what the SAT will be like and also serves as the qualifying basis for the National Merit Scholarship Corporation's scholarship competition.

Scholarship
A financial award, paid directly to a student or a college, that does not have to be paid back. Usually based on talent or scholastic excellence in a particular area. Can be based on need or non-need. Need-based scholarships are usually awarded in combination with a financial aid package.

Scholastic Aptitude Test (SAT)
The standardized test from the College Board Admissions Testing Program. Includes a verbal section, math section, and a test of written English.

Standardized Admissions Test
The term referring to tests such as the ACT and SAT used by nearly all college admissions offices and many sponsors of student aid programs for rating a student's academic aptitudes for admissions consideration and awarding financial aid.

Student Aid Report (SAR)
The report sent to a student applying for federal student aid containing information to guide financial aid officers in determining amount of a Pell Grant.