Financial Aid 101

Financial Aid can seem like a different language. Here are some terms and definitions that may help as you begin navigating the financial aid process.

Understanding Grants, Scholarships, Loans and Other Financial Aid Terms

Financial Aid can seem like a different language. Here are some terms and definitions that may help as you begin navigating the financial aid process.

Financial Aid: Financial aid is any form of assistance that helps students and their families pay for college. The aid may cover help cover tuition, living expenses, books/supplies/instruments, transportation, and personal expenses. There are various forms of financial aid that students can obtain. These include scholarships, grants, student loans, work-study programs, and more.

FAFSA: Free Application for Federal Student Aid. The FAFSA is the beginning of the Financial Aid process and assists schools in determining eligibility for Federal Aid and some grants and scholarships.  A FAFSA must be submitted each academic year of attendance.

Award Letter: The student award letter lists all types of aid and the amounts for each type of aid award that is being offered to a student.

Cost of Attendance: Cost of Attendance each year is based on tuition costs, fees, books, supplies and living allowance for the entire academic year.

Loans: Loans are funds borrowed by the student. Most loans for medical students accrue interest while in school and have a time limit for repayment.

Federal Work-study: Federal work study is an on-campus job that is approved by the campus and allows a student to work rather than borrow a portion of their financial aid package.

Scholarships: Scholarships can be merit based or need based or both. These are funds that are not paid back, but included within the financial aid package. Incoming students will learn whether or not they have been awarded a scholarship as part of their admission decision letter.

Entrance & Exit Counseling: Entrance and Exit counseling is mandated by the Department of Education upon entering the program and once you exit the program (either graduating or dropping to less than half-time status).  The purpose is to provide awareness to students regarding their rights and responsibilities when borrowing federal loans.

Title IV Authorization:   Title IV Federal Aid will automatically pay your current institutional charges (i.e. tuition, fees, room and board). KSU can only use a max of $200 of current award year aid to fund prior award year charges. However, Kent State University, in compliance with federal regulations, must obtain the voluntary permission from students to apply their Federal financial aid proceeds to pay for charges related to prior and current year charges other than tuition, fees, room and board on the student’s account.