Glossary
| Term | Description |
|---|---|
| A.A. |
This stands for an "associate of arts" degree, which can be earned at most two-year colleges |
| A.A.S. |
This refers to an "associate of applied science" degree, which can be earned at some two-year colleges |
| ACT |
This is a test published by American College Testing. It measures a student's aptitude in English, mathematics, reading, and science reasoning. Many colleges in the South and Midwest require students to take this test and submit their test scores when they apply for admission. Some colleges accept this test or the SAT I. (See below for explanation of SAT I.) Most students take the ACT or the SAT during their junior or senior year of high school. |
| B.A. or B.S. |
B.A. stands for "bachelor of arts," and B.S. stands for "bachelor of science." Both degrees can be earned at four-year colleges. Some colleges only grant B.A.s and others only grant B.S.s – it depends on the kinds of courses offered at the particular college. |
| Default Rate |
The default rate is the percentage of students who took out Federal student loans to help pay their expenses but did not repay them properly. |
| Dividends |
Dividends are payments of part of a company's earnings to people who hold stock in the company. |
| EFC (Expected Family Contribution) |
An amount, determined by a formula that is specified by law, that indicates how much of a family's financial resources should be available to help pay for school. Factors such as taxable and non-taxable income, assets (such as savings and checking accounts), and benefits (for example, unemployment or Social Security) are all considered in this calculation. The EFC is used in determining eligibility for Federal need-based aid. |
| Fees |
These are charges that cover costs not associated with the student's course load, such as costs of some athletic activities, clubs, and special events. |
| Financial Aid |
Financial aid refers to money available from various sources to help students pay for college. |
| Financial Aid Package |
The total amount of financial aid a student receives. Federal and non-Federal aid such as grants, loans, or work-study are combined in a "package" to help meet the student's need. Using available resources to give each student the best possible package of aid is one of the major responsibilities of a school's financial aid administrator. |
| Financial Need |
In the context of student financial aid, financial need is equal to the cost of education (estimated costs for college attendance and basic living expenses) minus the expected family contribution (the amount a student's family is expected to pay, which varies according to the family's financial resources). |
| General Educational Development (GED) Diploma |
The certificate students receive if they have passed a high school equivalency test. Students who don't have a high school diploma but who have a GED will still qualify for Federal student aid. |
| Grant |
A grant is a sum of money given to a student for the purposes of paying at least part of the cost of college. A grant does not have to be repaid. |
| Interest |
This refers to the amount that your money earns when it is kept in a savings instrument. |
| Investment |
An investment refers to using your money to invest in something that will enable you to earn interest or dividends over time. |
| Liquidity |
A term that refers to how quickly you can gain access to money that you invest or deposit in some kind of savings instrument. |
| Loan |
A loan is a type of financial aid that is available to students and to the parents of students. An education loan must be repaid. In many cases, however, payments do not begin until the student finishes school. |
| Merit-based Financial Aid |
This kind of financial aid is given to students who meet requirements not related to financial needs. Most merit-based aid is awarded on the basis of academic performance or potential and is given in the form of scholarships or grants. |
| Need-based Financial Aid |
This kind of financial aid is given to students who are determined to be in financial need or assistance based on their income and assets and their families' income and assets, as well as some other factors. |
| Open Admissions |
This term means that a college admits most or all students who apply to the school. At some colleges It means that anyone who has a high school diploma or a GED can enroll. At other schools it means that anyone over 18 can enroll. "Open admissions," therefore, can mean slightly different things at different schools. |
