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    Terms to Know

    College Scholarship Service (CSS)
    A service that provides the Financial Aid PROFILE Service (see below), which is required by some colleges.

    Cooperative Education Plan (Co-op)
    A program offered by some colleges that lets a student combine work and study. Co-op programs are either "alternating" (work and study in alternating school terms) or "parallel" (work and study scheduled within the same school term).

    Expected Family Contribution (EFC)
    This is the amount the student and parents are expected to pay toward educational expenses for the coming year. The EFC is calculated from a formula established by Congress, based on the information provided on the Free Application for Federal Student Aid (FAFSA).

    Federal Hope Scholarships
    This is actually a tax credit, rather than a scholarship. Families can claim a tax credit up to $1,500 per tax year for each eligible dependent for up to two years. The actual amount of the credit depends on the family's income and other factors.

    Federal Work-Study
    This program provides much of the money necessary for colleges to offer on- and off-campus jobs to students with demonstrated need.

    Financial Aid Package
    The Financial Aid Package tells you what grants, scholarships, loans and/or work-study your child has been awarded, and the amount of each.

    Financial Aid PROFILE Service
    Offered by the CSS, PROFILE is used by some colleges to award their private funds. You register for PROFILE with the CSS, which sends you an application packet. Your student fills out the application and returns it to CSS, which forwards the information to the colleges of your child's choice.

    Free Application for Federal Student Aid (FAFSA)
    The FAFSA is the financial aid application used by all colleges. Available at most high schools and colleges, the FAFSA is completed and returned to the U.S. Department of Education for evaluation—in your child's senior year, as soon after January 1 as possible. This can be done by mail, by e-mail through the school or by using FAFSA Express software. (FAFSA Express is available free by calling 1-800-801-0576.) Your student can also apply online at The high school guidance office can provide more information.

    Parental Contribution
    The portion of the Expected Family Contribution (EFC) you are expected to contribute toward college expenses. It's based on a variety of factors including income, family size and the number of family members in college.

    Parent Loan for Undergraduate Students (PLUS)
    A federal loan for parents of college students, provided by the Federal Family Education Loan Program. To be eligible for a PLUS loan, you will usually be required to pass a credit check.

    Pell Grants
    Awards made by the federal government that don't need to be paid back. The FAFSA serves as the Pell Grant application. Your eligibility depends on a formula set by Congress.

    Perkins Loans
    Federal loans awarded by colleges as part of their total aid package. These loans must be paid back, but payments don't start until nine months after leaving college. Colleges award these loans based on the information provided on the FAFSA.

    Special Circumstances
    A college's financial aid administrator may consider special circumstances that could affect your EFC. These circumstances may include an unemployed parent, unusual medical or dental expenses, or tuition expenses for younger children in private school. Report any such conditions to the financial aid officer at the college(s) from which you're requesting aid.

    Stafford Loans
    These are federal loans available to your child through local lenders. There are two types of Stafford Loans. For the subsidized Stafford, recipients must demonstrate need, and they pay nothing on the loan while they're in school. Unsub-sidized Stafford Loans, meanwhile, are available to non-need students, but require recipients to pay interest while still in school.

    Supplemental Educational Opportunity Grants (SEOG)
    SEOGs, part of the federal aid program, do not require repayment. They are made to students with exceptional financial need, as determined by the college.

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