FAFSA Information

Types of Financial Aid

Grants

A source of financial aid that does not have to be repaid and is based on demonstrated need in your FAFSA. These come in the form of Federal, State, College, or Community Foundation awards.

Scholarships

A source of financial aid that does not have to be repaid. Scholarships are based on a wide range of criteria such as academics, athletics, talents, affiliations with community groups, or career aspirations.

Work Study

A needs-based student employment program in which eligible students work part-time and earn payroll wages to help fund their education-related expenses. These are Federal awards.

Loans

Loans are an option funding source for students and their parent(s) and must be repaid to

Check out your Financial Aid Options through the State of Michigan

Financial Aid Explained
FAFSA ( Free Application for Federal Student Aid)

Financial Aid Explained

Financial Aid Glossary

Link: https://www.nasfaa.org/glossary

In early March 2024 the glossary was updated once again to reflect NASFAA's alignment with the College Cost Transparency Initiative. It contains universally accepted definitions of language typically contained on financial aid offers given to current and prospective students by colleges and universities. The intent of this glossary is:

To provide colleges community-defined and accepted definitions of common terms used on institutional financial aid offers
To provide greater clarity and understanding by students through consistency in the use and meaning of terms on financial aid offers across all colleges and universities
To allow prospective students to more easily compare information from multiple schools because terms used have common definitions

Financial Aid Offer	A financial aid offer is a document sent by a postsecondary institution to a student that outlines the amounts and details of the financial aid being offered to the student, which may include scholarships, grants, loans, employment, or other forms of financial assistance to pay for college expenses. Sometimes schools refer to these as financial aid “awards”, although this term is outdated. Schools should refer to these as financial aid offers.
Cost of Attendance	The Cost of Attendance consists of the sum of educational costs payable to the school (also referred to as direct or billable costs) and costs paid to others (or indirect, non-billable or discretionary) costs. The Cost of Attendance represents the highest dollar amount of financial aid a student can receive during an award year.
Costs Paid to Others	Costs paid to others (also referred to as indirect, non-billable, or additional costs), are other expenses not paid directly to the school, but associated with receiving an education. These expenses are estimated by the school and may differ from student to student based on their individual circumstances. These expenses may include books, course materials, supplies, equipment, transportation and parking, personal expenses, childcare costs, computer costs, disability expenses, licensure expenses and off-campus rent and food.
Costs Payable to the School	Costs Payable to the school (also referred to as direct or billable costs) generally include tuition, fees, housing, and meals/food (for students residing on campus), health insurance (if minimum insurance coverage is not documented), or any other expenses paid to the school for enrollment.
Educational Loan	Money borrowed from the federal government, a college or university, or a private source like a bank or financial institution to pay for educational expenses and must be paid back with interest.
Federal Loan	Also known as the Direct Loan Program, which allows eligible students and parents to borrow directly from the U.S. Department of Education at participating colleges or universities. Federal student loans include Direct Subsidized, Direct Unsubsidized and the Direct PLUS programs for parents of dependent students and graduate or professional students.
Federal Direct Subsidized Student Loan	A Direct Subsidized Loan is an undergraduate federal student loan based on financial need and offers students a reduced, fixed interest rate and flexible repayment terms. Interest is subsidized, meaning it does not accrue to the borrower, while in an in-school, grace, or deferment period. Annual and aggregate limits apply.
Federal Direct Unsubsidized Student Loan	An unsubsidized loan offers students a fixed interest rate and flexible repayment terms. It is not based on financial need. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins. Annual and aggregate limits apply.
Federal Direct Graduate PLUS Loan	Direct Graduate PLUS Loans are federal loans that graduate or professional students use to help pay for education expenses. A credit check for adverse credit history is required for eligibility. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins.
Federal Direct Parent PLUS Loan	Direct Parent PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay for education expenses. Parents must pass a credit check for adverse credit history to qualify for PLUS loans.
Private Loan	A student or parent loan from a bank, credit union, private company, a nonprofit or state-affiliated lender, or from the college or university directly to pay for educational costs. Interest begins to accrue when the loan is disbursed, and repayment begins while the student is still enrolled in school.
Enrollment Status	The number of credits, clock hours, or classes the student is enrolled in, or whether they have withdrawn, graduated, etc. Enrollment status affects eligibility for and the amount of financial aid a student may receive. It also affects when student loans enter repayment status.
Federal Pell Grant	The Pell Grant is a federal grant program designed to assist undergraduate students in low- and moderate-income households to pay for college. The award amount is based on the cost of the institution, SAI, and enrollment status, and is subject to an aggregate limit.
Federal Supplemental Educational Opportunity Grant (FSEOG)	A federal grant provided by the institution to qualified undergraduate students who demonstrate exceptional financial need and does not need to be repaid. The amount of funding from this program varies by institution.
Federal Work-Study (FWS)	Federal Work-Study provides funding for part-time jobs for undergraduate and graduate students with financial need. Unlike grants and loans, FWS is paid to students as they earn the funds by working.
Grants & Scholarships	Any money provided to students that does not have to be repaid. They can be called grants, scholarships, tuition remissions, gift aid, or tuition waivers. Grants and scholarships are provided based on many different factors.
Need	The student's Cost of Attendance minus their Student Aid Index.
Need-based Aid	Financial assistance provided to students based on their financial situation, determined by completing the FAFSA. Need-based financial aid can take different forms, including grants, scholarships, work-study programs, and low-interest loans, like the federal direct subsidized loan.
Net Price	The difference between the cost of attendance and all grants and scholarships. Net price reflects what the student is expected to pay for their education on their own and can be covered through a variety of sources, including savings, student employment, institutional payment plans, or education loans.
Other Funding Options	Funding options outside of grants and scholarships that a student and their family may use to pay any remaining costs or expenses. This may include loans, student employment, institutional payment plans, or personal savings.
Student Aid Index (SAI)	The SAI is the eligibility index used to determine your eligibility for federal, and in some instances, state and institutional need-based student financial aid. Generally, students with a higher SAI are eligible for less need-based financial aid. It is based upon the information provided by the student and their family on the FAFSA.
Verification	A federally mandated process to confirm the accuracy of data provided by selected applicants on the FAFSA. To complete the verification process, the student, their parent(s), or spouse, if applicable, are required to provide certain documents to the school for review. If the documentation the student provides the institution doesn't match what was reported on the FAFSA, verification can result in changes to the student's financial aid eligibility, and/or financial aid offers.

Visit the Department of Education's website for more information on the types of Federal Student Aid.

Publication Date: 3/25/2024

Department of Education's website

FAFSA ( Free Application for Federal Student Aid)

FAFSA Free Application for Federal Student Aid (STUDENT FINANCIAL AID)

You could lose out on thousands of dollars for college. Don't let that happen!
To get the most, you need to submit the Free Application for Federal Student Aid (FAFSA) by March 1st.

FAFSA form is available online October 1st each year at https://studentaid.gov/h/apply-for-aid/fafsa.

Changes to Your Family’s Financial Situation

If your or your family’s financial situation has changed significantly from what is reflected on your federal income tax return (for example, if you’ve lost a job or otherwise experienced a drop in income), you may be eligible to have your financial aid adjusted. Complete the FAFSA questions as instructed on the application (including the transfer of tax return and income information), submit your FAFSA form, then contact the school you plan to attend to discuss how your current financial situation has changed. Note that the school's decision is final and cannot be appealed to the U.S. Department of Education.