Student Financial Aid emerged as an important form of financing higher education during the 1970's, when the Educational Amendments of 1972 authorized an expansion of funding and also established a program to encourage states to become involved or to do more in assisting their students with their educational costs. Well over half of all college students rely on one or more forms of financial aid during their educational careers.
Following the National Defense Education act of 1958, through the Higher Education Act of 1965, the Education Amendments of 1972, 1976, and 1980, and the Middle Income Student Assistance Act of 1978, a system of grants, loans and work study jobs was designed to make it possible for students with ability and desire who needed financial assistance to go to college.
Academic year-The measure of academic work to be accomplished by
a
student each year as
defined by the school. For example, at a school that uses
terms, an academic year must contain at least 30
weeks of instructional time
where a full-time
student is expected to complete at least 24 semester
hours, 36
quarter hours, or 900 clock
hours.
Borrower-Person responsible for repaying a loan who has
signed and agreed
to the terms in the
promissory note.
Loan-Money that is borrowed that must be
repaid.
Promissory note-A legally binding contract between a lender and
a
borrower. The note contains the terms and
conditions of the loan, including how
and when the loan
must be repaid.
Interest-A loan expense charged by the lender and repaid by
the borrower.
The expense is
calculated as a percentage of the loan amount (principal), and is
charged for the use of borrowed money.
Variable interest-Rate of interest on a loan that is tied to a stated
index and
changes annually every July 1 as the index
changes.
Capitalizing interest-Adding unpaid
accumulated interest to the loan
principal. Capitalizing interest increases the
principle amount of the loan and,
therefore, the total cost of the loan.
Family contribution-The amount of money the family of a student
is
expected to contribute toward college expenses. The family includes the
student,
siblings, and their parents in the case of a dependent student, or the student
(and
spouse and children, if any) of an independent student. This contribution
is
analyzed by the FAFSA through a standardized formula.
Financial need-The difference between the student's educational
expenses
and the amount of money
the family is expected to contribute. In general, this
formula is Cost of Attendance minus Family Contribution minus Financial
Aid.
Cost of Attendance-The total cost of attending your college of
choice.
This usually includes
tuition, room and board, fees, books, and other incidental
costs, such as transportation. This cost
can be obtained by contacting your
college of choice.
Financial aid package-A combination of financial aid resources
put
together by the college
financial aid administrator designed to meet, a closely as
possible, a
student's financial
need.
FAFSA-Free Application for Federal Student Aid. Sent
out by the US
Department of Education, this form must be filled out in order to qualify
for
federal financial aid.
SAR-Student Aid Report. After filling out and
returning the FAFSA, the US
Department of Education will calculate what aid you
qualify for and send you a
report of this aid,
the SAR.
Federal Financial Aid
1. Grants-Gifts and scholarships that do not have to
be
repaid.
2. Loans-Money borrowed to cover school
costs, which
must be
repaid.
3. Federal Work
Study (FWS)- Employment which allows a
student to earn a portion of
school costs.
Outside Aid
1. Scholarships and Grants.
2.
Loans
Federal Financial Aid
How to Apply for Federal Aid
Outside Aid
Repayment
Deferments and Forbearance
Resources and Evaluation
Questions about this site? mailto:mdiodato@arches.uga.edu or mailto:baderj@arches.uga.edu