Financial Aid Basics Flashcards
6 cards from real COLLEGE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Financial Aid Basics flashcards as text
What does FAFSA stand for?
Answer: Free Application for Federal Student Aid
FAFSA stands for the Free Application for Federal Student Aid, the form used by U.S. students to apply for federal grants, work-study, and loans.
What is the key difference between a scholarship and a student loan?
Answer: A scholarship does not need to be repaid, while a loan must be repaid, usually with interest
Scholarships are gift aid that does not need to be repaid, whereas loans are borrowed money that must be repaid over time, typically with interest.
What does the term 'cost of attendance' (COA) include beyond tuition?
Answer: Estimated costs such as housing, food, books, transportation, and fees in addition to tuition
Cost of attendance is a comprehensive estimate that includes tuition and fees plus indirect costs like housing, food, books, supplies, and transportation, used to calculate financial need.
What is a 'subsidized' federal student loan?
Answer: A loan where the government pays the interest while the student is enrolled at least half-time
With a subsidized federal loan, the U.S. Department of Education pays the interest that accrues while the student is in school at least half-time, during the grace period, and during deferment.
What is a Pell Grant?
Answer: A federal need-based grant for undergraduate students that does not need to be repaid
The Pell Grant is a federal, need-based grant awarded to undergraduate students who demonstrate significant financial need, and unlike a loan, it generally does not require repayment.
Why is it generally recommended that students file the FAFSA as early as possible after it opens each year?
Answer: Some aid programs, especially state and institutional aid, are awarded on a first-come, first-served basis with limited funds
Many state and school-based financial aid programs have limited funding and distribute it on a first-come, first-served basis, so filing the FAFSA early can increase a student's chances of receiving certain aid.