Financial Aid Glossary

For a financial aid glossary, click here.

General Information on Financial Assistance

The rising cost of a college education has attracted a great deal of attention in recent years, and deservedly so. The financial aid formulas and procedures vary for each school, so you must ask each college about its individual financial aid program.

There are two types of financial aid: need-based aid and merit-based aid. First, let’s look at need-based aid.

Need-based Financial Aid

Need-based financial aid is awarded based on a family’s demonstrated financial need. A family’s eligibility for need-based aid is based on a simple formula:

Cost  -  Family Contribution  =  Eligibility for Aid

Remember that the family contribution component is not what you think you can afford, but what the colleges and the federal government think you can afford. In order to determine a family’s contribution, colleges will require one or more forms. The Free Application for Federal Student Aid (FAFSA) is required by all colleges, and most private colleges now require the College Scholarship Service PROFILE form. These forms are available on the Internet and in the college counseling office. Some schools have forms of their own as well. The FAFSA should be submitted directly to the Department of Education as soon as possible after January 1st (there may be a separate form to be filled out if you are applying early decision or early action), and the PROFILE should be submitted directly to the College Scholarship Service as early as possible.

Financial aid packages for students who qualify for need-based aid generally consist of a loan, a work-study job, and/or a scholarship (grant).

Merit-based Aid

Merit-based aid is awarded competitively without regard to need. Students may receive merit-based awards based on academic abilities, athletic talents, musical proficiency, etc. It is a good idea to ask each college to which you apply if they offer any merit scholarships, since more and more colleges are offering merit scholarships every year. The college counseling office also has information about national and local merit scholarships.

Application Instructions

It is critical that students comply with all deadlines imposed by the college/university, federal government, and CSS. Applicants should be aware of those institutions using their own forms. For the sake of simplicity, the instructions below are for the FAFSA and the Profile.

High school seniors applying for regular decision admission should complete the FAFSA before February 1 and the Profile as early as possible. Early Decision applicants applying for financial aid must file the Profile (if required) by November 1; the FAFSA must be filed after January 1.

Special Circumstances in the Financial Aid Process

Divorced or Separated Parents - If a student’s parents are divorced or separated, some colleges require financial information from both parents. Typically the FAFSA and the Profile should be completed by the parent with whom the student resides (custodial parent). The non-custodial parent is required to complete the Divorced/Separated Parent Statement and submit it directly to the specific college or university. That form is typically available from the college’s financial aid office. It should be noted that standard federal need analysis procedures require that step-parent income and asset data be included on the FAFSA and Profile.

Business/Farm Supplement - Parents who own a business, a farm or are otherwise self-employed must complete the Business/Farm Supplement in addition to the FAFSA and Profile (when required).

Financial Aid Resources

Books and Articles

• College Costs and Financial Aid Handbook (The College Board)
  This book provides facts about costs and financial aid at 3,000 colleges as well as strategies and advice on applying for financial aid. Updated annually.
• Facts: Financial Aid for College through Scholarship and Loans, Gladstone, Kathleen and Elizabeth Hoffman
  A clear, comprehensive look at costs and how to pay for them. Updated annually.
• Don’t Miss Out: The Ambitious Student’s Guide to Financial Aid, Leider, Anna and Robert
  A superb, concise, and comprehensive look at the financial aid process. Updated annually.
• The A’s & B’s of Academic Scholarships: 100,000 Scholarships for Top Students, Leider, Anna
  A concise, comprehensive book about competitive academic scholarships.
• Loans and Grants from Uncle Sam: Am I Eligible and For How Much?, Leider, Anna.
  This one should be looked at in conjunction with "Don’t Miss Out." An insider’s look at federal loan and grant programs.
• Scholarship Handbook (The College Board)
  A comprehensive listing of over 2,000 undergraduate scholarships, internships, and loan programs. Updated annually.

Financial Aid Links

• Massachusetts Education Financing Authority
• Colleges, College Scholarships, and Financial Aid Page
• Expected Family Contribution Calculator
• Ouch! Students Getting Stung Trying to Find $$$ for College
• College Parents of America
• FastWEB! Financial aid Search Through the Web
• Paying for College: Collegeboard
• Peterson’s Education Center: Financing Education
• Sallie Mae: Student Loan Marketing Association
• Scholarship Resource Network Express
• The Princeton Review: Articles and Advice
• The Student Guide: Financial Aid from the U.S. Department of Education
• US News and World Report: Financial Aid Calculator
• Wired Scholar

Financial Aid FAQ

Does every school require the FAFSA?

Yes! Every school to which you wish to apply for financial aid will require the FAFSA. You will enter the 6-digit code for each school to which you are applying so that they may receive your information.

How do I know which additional forms my schools require?

In order to know if there is any additional information required by your schools, you must check the printed information that the school has sent to you. In addition, you can check the list of schools on the PROFILE form to see if your school is listed as one that requires the PROFILE.

What will I receive after I file my FAFSA? How will I know if I made a mistake?

After completing the FAFSA (after January 1, 2006), you will send it online to a federal processor where your information will be entered in a database. It will take the government seven days to process your form and send you a Student Aid Report (SAR) once we have received all required signatures. Your SAR will summarize the data you report on your application. Check this information carefully to make sure it is accurate. Keep a copy of your SAR and note your Data Release Number (DRN) in the bottom left hand corner of the first page; you will need your DRN if you decide to apply to additional schools. If your FAFSA information is complete, an Expected Family Contribution (EFC) will be printed in the upper-right hand corner. Your EFC will be based on the financial information you provide on the FAFSA, and your school will use it to award your financial aid. For more information go to www.fafsa.ed.gov.

What will I receive after I file my CSS PROFILE?

After completing the CSS PROFILE online, you send it to the CSS processor, where your information will be entered into a database and sent to the schools which you indicated should receive them. The charge for this service is $18.00 per school. On the CSS web site, you can access a CSS Acknowledgement confirming that your PROFILE form was received and processed and sent to the schools that you indicated.

Does it matter when I file my forms?

Yes! Your timing is crucial! You may file the FAFSA after January 1, 2006, but you must file all forms by the Priority Filing Date suggested by your schools. You may use estimated income information. Most schools set February 1 as the Priority Filing Date. If you miss the date, a school may not be able to fund you, regardless of your need! File on time to get priority!!

What if I file on time, but do not receive a financial aid package that will allow me to attend my chosen school?

If you receive your financial aid package and you and your parents believe it is insufficient, you may appeal the financial aid decision. After discussing your questions by phone, you must put your request for an appeal in writing and send it to the college’s financial aid office. There is no guarantee that your package will change.

What if I have an unusual family circumstance and there seems to be no way to explain it on either the FAFSA or the PROFILE? What should I do?

If you have special circumstances, you and your parents should put this information in writing and direct it to the Director of Financial Aid at the schools to which you are applying. You should do this early in the process—January is preferable—so that your financial aid officer has access to this information while working on your financial aid package.

What if my parents are divorced or separated? Must I file anything special?

If your parents are divorced or separated, the parent you live with (custodial parent) should complete your FAFSA and, if required, PROFILE. If a school requires additional information from your non-custodial parent, that parent must complete the non-custodial profile. Your non-custodial parent is required to complete his/her form and return it to the school.