Financial Aid: know the terms.
It’s an exciting time of year for families with high school seniors! If you’re reviewing admissions decisions and financial award letters, we hope you have lots of choices!
We thought it would be helpful to explain a few of the most commonly used Financial Aid terms as you evaluate your financial aid offers from various schools. And for the underclassman or parents new to the college search, keep reading - you’ll want to know these too!
Free Application for Federal Student Aid (FAFSA)
The FAFSA is required to determine a student’s eligibility for federal student aid. Many colleges also require FAFSA when awarding merit money and other forms of gift aid. We encourage families to complete the FAFSA as soon as it becomes available the student’s senior year – it opens on October 1st each year. The FAFSA website is incredibly easy to follow and contains informative videos to answer frequently asked questions. Follow the links on the FAFSA website.
Net Price Calculator (NPC)
Net Price Calculator is a tool found on each college or university’s website that allows families to estimate the net price of attending that particular school.
Sticker Price/Cost of Attendance (COA)
The total annual price of attendance published on an institution’s website, including tuition, fees, room and board, books, supplies and miscellaneous expenses is known as the sticker price or Cost of Attendance. Families should use COA to estimate the cost of college before financial aid packages.
Expected Family Contribution (EFC)
The EFC is an index number used to determine your eligibility for financial aid based on a family’s information provided on the FAFSA. A family’s Expected Family Contribution is found on the Student Aid Report (SAR) after the FAFSA is submitted. This represents the amount that the family is expected to contribute toward their student’s education expenses.
Net Price
The net price represents the actual amount families will pay in a single academic year after subtracting scholarships, financial aid, and grants the student receives.
Congratulations to current seniors who are evaluating award letters in order to decide which college to attend. But what if your top choice school fell short, and the only obstacle to your enrollment is the price tag? Don’t lose hope yet! It may be worthwhile to file an appeal requesting additional money. Contact us if you need help writing a strong financial aid appeal letter.
