The world of scholarships and financial aid has its own language, which can be confusing. For a list of commonly used terms and their definitions, see below.
Academic Year
A period of at least 30 weeks of instructional time, traditionally August or September through May.
Accredited
Accreditation of educational institutions in the U.S. is done by regional and specialized accrediting associations. The U.S. Department of Education recognizes accrediting bodies for purposes of institutional financial aid eligibility and other areas in which the federal government has an interest.
Cost of Attendance
The total cost of attending college: tuition and general fees, room and board, lab fees, books, travel costs, and sometimes child care. Currently in Oregon, these are approximately $14,000 per year at community colleges; $19,000 per year at state universities; and $35,000 or more at private institutions.
Cost of Tuition & Fees
Tuition and general fees (excluding housing, etc.). Currently these are approximately $3,500 per year at community colleges; $6,500 per year at state universities; and $25,000 or more at private institutions.
Direct Loan Program
Schools generally participate in either the Direct Loan Program or the FFELP but sometimes participate in both. Under the Direct Loan Program, funds for the loan come directly from the federal government rather than a private lender. Eligibility rules and loan amounts are identical under the FFELP and the Direct Loan Program, but repayment plans may differ.
Expected Family Contribution (EFC)
The amount determined by the federal government through the FAFSA as the figure a family can afford to contribute toward college costs, based on family income and assets.
Federal Aid
See "Title IV Funds."
FAFSA
See "Free Application for Federal Student Aid."
Federal Family Education Loan Program (FFELP)
Schools generally participate in either the FFELP or the Direct Loan Program but sometimes both. Funds for the FFELP come from a bank, credit union, or other private lender. Eligibility rules and loan amounts are identical under to those of the Direct Loan Program, but repayment plans may differ.
Financial Need
The difference between the cost of attendance at a college and the Expected Family Contribution.
Free Application for Federal Student Aid (FAFSA)
The FAFSA is a form used by the federal government to assess financial need, set an amount for the family to contribute from their own resources, and verify a student's eligibility for aid in the form of federal grants, loans and work study. All applicants for need-based aid must complete this form every year. Home equity, for the purposes of calculating student need, is not considered part of the family's assets. Within a month of submitting the FAFSA, the student should receive a Student Aid Report (SAR). Although some of the information needed for the FAFSA is based on income taxes, you should not wait until you have completed your tax forms to submit the FAFSA. You may use income estimates for the FAFSA and then correct errors later.
Full Time
Generally a student who is enrolled for 12 credits or more is considered at full-time enrollment.
Graduate Student
A student who holds a bachelor's degree and is studying for an advanced degree.
Higher Education
This term refers to all programs for high school graduates, including vocational and technical schools and programs at two- and four-year colleges and universities.
Hope Scholarship Tax Credit
A federal tax credit (that is, a reduction in the taxes owed by a family) to help low-income families with out-of-pocket tuition expenses, up to $1,500 per student for each of the first two years of post-secondary education. [Note: A family cannot claim this tax credit and the Lifetime Learning Tax Credit for the same student in the same year.]
Lifetime Learning Tax Credit
A federal tax credit (that is, a reduction in the taxes owed by a family) for low-income families equal to 20 percent of the first $10,000 of out-of-pocket tuition expenses, to a maximum of $2,000 per student per year. [Note: A family cannot claim this tax credit and the Hope Scholarship Tax Credit for the same student in the same year.
Oregon Opportunity Grant
A grant awarded through a program funded by the State of Oregon and the federal government to help low-income families. The program is administered by the Oregon Student Assistance Commission and does not require a separate application. It is only for low-income undergraduate students attending an educational institution in Oregon. Students may receive the grant for four academic years. Eligibility is determined at the college's financial aid office.
Oregon Student Assistance Commission (OSAC)
A state agency charged with the responsibility for administering a statewide scholarship program. OSAC works closely with high schools and colleges to ensure that application information is available to students. Also, OSAC provides a single application process for students seeking scholarships from a number of sources, including most of OCF's scholarships.
Part Time
Generally a student who is enrolled for less than 12 credits per term is considered part time. Some scholarships allow part-time attendance, but most do not.
Pell Grant
A federal grant awarded to undergraduate students based on the program funding, Expected Family Contribution, and cost of attendance. Pell grants do not need to be repaid by students.
Perkins Loan
A low-interest loan offered by the federal government to students with exceptional financial need, for a maximum of $5,500 per undergraduate year of study or $8,000 per graduate year of study.
PLUS (Parent Loan for Undergraduate Students)
A federal program offering loans to parents of undergraduate students – and to graduate students. With this program, repayment may begin immediately or the borrower may seek to defer payment until the student has finished school.
SAR (Student Aid Report)
A document generated for a student by the federal application processor. The SAR contains financial aid and other information reported by the student on the FAFSA. The student's Expected Family Contribution (EFC) is printed on the front of the SAR and is the figure used by colleges to determine eligibility for aid.
Scholarships
Funds used to pay for higher education which do not have to be repaid. Scholarships may be awarded based on any number of criteria, such as academic promise or achievements, special talents, participation in particular groups or activities, or career goals.
Stafford Loan
A federal program offering loans to students for their educational costs, with up to 10 years from graduation to pay the balance. For subsidized Stafford Loans, the federal government pays the interest. For unsubsidized Stafford Loans, the student pays the interest.
Supplemental Education Opportunity Grant
A federal program offering grants to undergraduate students, with awards dependent on (1) the student's financial need, (2) the availability of these funds, and (3) the amount of other aid the student received.
Title IV Funds
Federal financial aid programs authorized under the Higher Education Act of 1965 (as amended), including federal subsidized and unsubsidized Stafford Loans, Parent Loans for Undergraduate Students, federal Pell Grants, and Federal Supplemental Educational Opportunity Grants.
Transcripts
A list of all courses that a student has taken at a particular high school or college, with the grades the student earned in each course.
Undergraduate Student
A student who has graduated from high school and is studying for a bachelor's degree.
Work Study
A program centered at a college through which students work part-time to help fund their education. A student's earnings through work-study programs generally are subject to federal and state income tax but exempt from FICA taxes if the student is enrolled full time and working less than half time.