Award year

The period of time between the beginning of the fall term of one year through the end of the summer term of the following year (Fall-Spring-Summer).

Budget

The total estimated cost of attending a postsecondary institution for one academic year. AACC establishes standard budgets based on housing status and enrollment level. These standard budgets include estimated tuition, fees, room, board, books, supplies, transportation, and personal expenses.

Expected Family Contribution (EFC)

The amount a student and his/her spouse and/or family are expected to pay toward his/her cost of attendance. The U.S. Department of Education determines this value by applying a federal formula to the student's FAFSA data.

Financial Need

Financial need is defined as the difference between your estimated educational expenses including direct costs (tuition, fees, book, supplies) and indirect costs (transportation and living expenses) and your family’s ability to contribute toward those expenses. Your family’s ability to contribute is determined by the US Department of Education using the information provided on the Free Application for Federal Student Aid (FAFSA).

Cost of Education - Expected Student/Family Contribution = Financial Need

Grant

A financial aid award that is usually based on financial need and does not have to be paid back.

Independent Student

A student who has attained age 24, or who has not attained age 24 but:

• is an orphan
• is a ward of the court or was a ward of the court until age 18
• is a veteran
• is married
• is a graduate or professional student
• has legal dependents other than a spouse
• has been declared independent by appealing to a college financial aid office.   For more information, see Dependency Appeal.

Loan

Financial aid which must be repaid. Student loan programs have varying interest rates and repayment provisions.

Scholarship

A financial aid award that is usually based on academic merit or achievement and does not have to be paid back.

Unmet Need

The difference between a specific student’s total available resources and the total cost for the student’s attendance at a specific institution.

Verification

Schools must ask a portion of students to verify the accuracy of their FAFSA data verifies that the student provided accurate information on the FAFSA by asking the student to submit a Verification Worksheet and signed copies of Federal tax returns and, if applicable, parent's and spouse's tax returns. If the U.S. Department of Education selected the student for verification, the student's SAR includes a verification comment. If the school selects the student, they send the student a letter. School cannot offer any aid until all documents are received. Once the school receives the corrected data, they check the data and make any required corrections to the FAFSA data. Once the corrections are complete, the school can notify the student of his/her eligibility.

Veteran

There are two relevant definitions:

• To qualify for independent status when applying for federal financial aid, a veteran is a person who has served on active duty in the Army, Navy, Air Force, Marines or Coast Guard, and who was discharged other than dishonorably. There is no minimum length of service requirement.  
• To be considered a Veteran by the Veteran's Administration, which is required to receive Veterans benefits, individuals must have served on active duty for a minimum of 180 days.