Financial Aid and Scholarships Flashcards

What is the primary purpose of the FAFSA?

Answer: To calculate federal financial aid eligibility

The FAFSA determines a student's eligibility for federal financial aid including grants, loans, and work-study opportunities.

What is a merit-based scholarship?

Answer: Based on achievements and talents

Merit-based scholarships are awarded based on academic, artistic, athletic, or other achievements, not financial need.

What does the Expected Family Contribution (EFC) indicate?

Answer: How much the family is expected to pay

The EFC estimates how much a family can contribute toward a student’s education, influencing aid eligibility.

Why is it important to meet financial aid deadlines?

Answer: To ensure full consideration for financial aid

Missing deadlines can result in loss of financial aid eligibility or reduced funding availability.

What is a Pell Grant?

Answer: A federal grant for low-income students

The Pell Grant is a need-based federal grant that does not require repayment and supports low-income undergraduate students.

What type of aid must be repaid with interest?

Answer: Student loans

Federal and private student loans must be repaid, typically with interest over time.

What is a private scholarship?

Answer: Funded by private groups or organizations

Private scholarships are awarded by organizations outside the government and colleges, often based on various criteria like background, interest, or performance.

What is work-study?

Answer: A part-time employment program for students with need

Work-study provides part-time jobs for students with financial need, allowing them to earn money for educational expenses.

What should students consider when comparing financial aid packages?

Answer: Gift aid, loan amounts, and overall cost of attendance

Students should compare the total cost, gift aid vs loans, and any conditions attached to scholarships or aid.