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The college admissions and college funding processes can be confusing and frustrating. This is made worse by the fact that colleges and universities often speak their own languages and expect those of us trying to fight through the four or five years it takes to get our children through school to know their language up front. So, to help you become a native speaker, we’ve created a quick guide to some of the most common terms that you’ll run across in the college funding process.

Upromise - Save money for college.

529 plan - a savings program sponsored by either a state or educational institution, typically managed by a bank or financial service provider, which allows the family to save money towards eligible education expenses and receive certain tax benefits. 529 plan rules vary by state and by institution so it is important to talk to a financial professional in your area about these plans and the benefits and drawbacks for your specific circumstances.

Accreditation - accreditation is a measure of the quality of a college or university or one of its programs. Institutions are accredited by one of the six regional accrediting agencies:

The Middle States Association of Colleges and Schools - http://www.msche.org

New England Association of Schools and Colleges - http://www.neasc.org

North Central Association of Colleges and Schools/Higher Learning Commission - http://www.ncahigherlearningcommission.org

Northwest Commission on Colleges and Universities - http://www.nwccu.org

Southern Association of Colleges and Schools - http://www.sacs.org

Western Association of Colleges and Schools - www.wascweb.org).

Institutions may also have programs that are accredited by various professional organizations such as the American Bar Association which certifies legal education programs or the American Medical Association which certifies medical programs. While accreditation is not a guarantee of a quality education, an institution without accreditation is almost certainly a guarantee of a lack of quality. In addition, many scholarships, grants, and loan programs require that the student attend a regionally accredited institution (i.e. - an institution that holds accreditation with one of the agencies listed above).

Advanced Placement Credit - Advanced Placement or AP credit, is credit earned, by taking and earning a specific score on a subject matter exam. AP courses are offered by many high schools or by distance education for students who are home schooled or students whose schools do not offer advanced placement courses. In order to earn AP credit the student must meet the passing score on the AP Exam and the institution where the student is going to school must accept that AP exam for credit in one or more of their courses. Be sure to check before taking an AP course that the institutions the student is considering accept AP credit for that exam for a course the student will need to take.

Coverdell Education Savings Account - the Coverdell ESA, which was formerly called an Education IRA, is a special savings account that allows families to contribute up to a maximum amount per year per child (at the time of this writing that was $2000 per year per child). There are certain tax benefits to placing money in a Coverdell ESA, and if the money is not used for college, the funds turn into a traditional IRA for the child after he/she reaches a certain age. Coverdell ESAs may be contributed to by various family members, but each child may have no more than the maximum allowable amount contributed per year (so mom and dad can’t each contribute $2000 per child - the child can only have $2000 per year contributed into their account). It’s important to talk with a financial planner or adviser about the benefits and drawbacks of this type of savings plan.

Dual Credit - dual credit is credit awarded by a college or university for work completed in a high school course. The student also earns credit in the high school towards his/her graduation requirement. Dual credit programs vary greatly from state to state and from school to school, but in many cases dual credit is available at little or no cost to the student.

Expected Family Contribution - the EFC, is the amount the federal government (more specifically the United States Department of Education) estimates a family can commit to a child’s education based on the information the student and the family submit on the FAFSA. The EFC is used to determine federal aid eligibility as well as many state and institutional aid programs.

Free Application for Federal Student Aid - the FAFSA, is the most important document for students and parents to fill out to determine eligibility for federal financial aid. Most states and many institutions also use the data collected on the FAFSA as a means of determining eligibility for financial need based awards. While the FAFSA is still available as a paper document from some colleges and universities, many institutions now require that you complete the FAFSA online at http://www.fafsa.ed.gov. Students and their parents will also use this same web site to submit a renewal FAFSA each year they plan to attend college. The FAFSA has specific due dates, which should be obtained from http://www.fafsa.ed.gov. The institution may have FAFSA due dates that are earlier than the federal governments, so be sure to check the college or university’s FAFSA deadline to be sure your application receives priority status.

Grant - a financial award that typically does not have to be paid back and is most often awarded based on data provided by the student and the student’s parents or guardians on the FAFSA. Grants are often awarded as a part of the financial aid package from either the state or the federal government and are typically awarded to those students with the greatest financial need.

Scholarship & Grant Guide ~ Americas #1 Guide For 10 Years!

Hope Scholarship Tax Credit - the name of this one is confusing as this is not a scholarship, but a federal tax credit that is subtracted from the amount of tax a family owes (unlike a tax deduction which is subtracted from the family’s taxable income). This tax credit is available for up to two years the student is in college. Speak to your financial advisor or tax professional for more information on whether this tax credit will be available to you.

Lifetime Learning Tax Credit - a tax credit (like the hope tax credit this is subtracted from the tax owed, not taken as a deduction from income) awarded to eligible individuals who file tax returns. Unlike the Hope Scholarship Tax Credit, the Lifetime Learning Tax Credit is available every year for those who meet financial eligibility requirements (a certain adjusted gross income on the federal taxes). Speak to your financial advisor or tax professional for more information on whether this tax credit will be available to you.

Renewable Awards - a term that most often is applied to a scholarship, is an award that the student may receive multiple times, usually if they continue to meet eligibility requirements. Renewable awards may be renewable only one time or may be renewable multiple times. A non-renewable award is simply a scholarship or other award that is given only one time.

Student Aid Report - the SAR, is a document the student receives after completing the FAFSA. The SAR restates the information on the FAFSA and provides the student and his/her parents with information on eligibility for certain aid programs as well as the expected family contribution (EFC). It’s important that this is reviewed for accuracy and if there are changes that need to be made that you update the FAFSA.

Scholarship - a financial award that does not have to be repaid. Scholarships may be awarded based on academic or athletic talent as well as on financial need. Scholarships may also be awarded based on a specific achievement (winning a science award or earning a position in the top 10% of a graduating class) or because a student or their parent/guardian is a part of a population which is eligible for the award (such as because the parent is a member of the local Lion’s Club or the student is a female and is entering a male dominated field).

Transfer Credit - credit earned at one institution that will count either for a specific course or as an unassigned general credit towards the graduation requirement. Whether or not a transfer credit will be accepted is determined, in most cases, by the institution accepting the credit and institutions are often very choosy about whether or not they will accept transfer credit so it’s important to do your homework early (before you take that math class at another institution) to ensure that your institution will accept it and will accept it for the class you want and not just as unassigned general credit hours towards graduation.

Tuition Discounting - a (somewhat) controversial practice of offering different tuition prices to different students. Tuition discounting is most common in private schools, but does occur in many public colleges and universities as well. While the practice may be controversial, it never hurts to ask the financial aid representative if the institution offers different tuition rates to students who don’t qualify for other aid programs or for students who have significant financial need.

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Employers may not seem the most obvious choice to go to for tuition and education assistance, however employers are one of the leading providers for education programs and education assistance for their employees. Employers provide education assistance in a number of ways.

* Direct pay tuition assistance - the employer pays up front for the course, certificate, or degree program. The employee has no out of pocket expense.

* Reimbursed tuition assistance - the employer pays for the course, certificate, or degree program after the employee has successfully completed the program. The employer may pay after each course or only after the certificate or degree is completed.

* Educational/Professional Development travel assistance - the employer may pay for travel expenses related to travel to educational programs including courses at distant institutions or conferences/conventions.

* Time off without having to use vacation/personal days - if the employee needs to rearrange their schedule to make time for education, the employer may provide time off with pay. In addition, if the student is pursuing a distance education course or program but has to travel to campus or a residential education requirement the employer may allow the employee to attend without using vacation time. Employers may also provide time off without the need to use vacation time to attend college visits with your dependents.

* Direct Pay or Reimbursement for education supplies and tools - the employer may purchase or provide textbooks, supplies, or tools such as computing equipment.

* On the Job Training - this is training provided to the employee by the employer while the employee is working. Many employers have developed comprehensive training programs that mix classroom and experiential learning. Some employers have arranged with local community colleges to provide credit for the completion of such programs. If this is not the case with your employer, then prior learning assessment at a college or university may be an option to receive credit for on the job training.

* Assistance for spouses and dependents - some employers will even provide educational assistance for the spouses and dependents of their employers. This may include tuition assistance for private elementary or secondary education as well as assistance for postsecondary education.

* 529 College Savings Program - The employer may offer a college savings program as a part of their benefits package. As a part of this program, the employer may match contributions made by the employee into the program.

While many employers provide comprehensive details on the education assistance they provide, some either provide no details - particularly if it is a small business - or would be willing to do far more if asked. This is particularly true for employees who are pursuing education in a field of study that would help them in their present position and if the employer believes that supporting the employee’s education will cause the employee to continue with the organization for a significant amount of time after the course, certificate, or degree program is completed.

In exchange for supporting education, many employers require some benefits in return. These may include any number of things, but typically include one or more of the following:

1. The employee will seek education at an institution that is of high quality - often demonstrated through the fact that the institution is accredited by one of the regional accrediting bodies.

2. The employee will earn a certain grade in the course or a certain grade point average in the certificate or degree program. This requirement varies widely from employer to employer and may require the employee to earn a certain grade in every course. In contrast, if the employee is completing an entire degree program they may only be required to earn a certain grade point average.

3. The employee may be required to stay with the organization for a certain length of time after completing the course, certificate, or degree program. This may be a standard length of time (such as one year) regardless of the length of the education pursued or it may be a length of time based on the length of the course, certificate or degree being pursued.

4. The employee may be required to give back to the organization in the form of in service or one-on-one training for other employees.

If your employer is willing to provide educational support for you, your spouse, or your dependents, it is important to get the details of that support in writing, particularly if beginning a lengthy degree program. Even if the employer currently offers tuition assistance or other education benefits as a part of the regular benefits package it is important to discuss your educational goals with your employer and ensure that these benefits are not going to be discontinued after you have started the program. It may be beneficial to write an agreement between you and your employer - particularly if your employer is providing benefits that are not documented as part of the regular benefits program.

Even if your employer is not willing to provide educational benefits in the form of those above, every employee learns skills on the job which may be documented and used in order to earn prior learning assessment credit at a college or university. It is important that employees maintain accurate and comprehensive records on their own of training they complete on the job, new skills they gain on the job, and how these skills were gained. Whenever possible, maintain examples of work completed as a method of demonstrating the achievement of objectives for prior learning assessment.

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A majority of the scholarship dollars available are for those students graduating from high school and entering an undergraduate program. Many high schools capitalize on the availability of these scholarship dollars and provide assistance to students and their parents in earning these dollars. It is important to know up front that every high school is different in how they assist parents and students in earning scholarship dollars. Furthermore, every high school is different in what scholarships they attempt to help students earn. Some offer assistance to students only for locally available scholarship dollars that have been awarded at the school before. Others high schools will do everything they can to help students earn every dollar available for scholarships.

In the best case, students will only need to fill out one application for the locally available scholarships that the school awards every year. In this process, the student completes one application and then is compared against the requirements for many different scholarships. This program is beneficial as it streamlines the work students need to do. However, if the school makes an effort to balance the amount of scholarships dollars earned by each student then a particularly high achieving student may not receive all the dollars they would receive in a more competitive process that is not centralized.

Parents and students need to follow up regularly on the scholarship process at the high school on a regular basis. This includes learning when deadlines are, what documents the guidance department at the high school will provide, and what other documents/information the student will need to complete the application process. Scholarship application processes can begin very early - as early as the high school sophomore year.

In addition to providing guidance to students on what scholarships are available, the high school should provide some support in gathering the documents necessary to complete scholarships. These documents include:

* high school transcripts which typically provide the student’s grade point average and the student’s class rank
* PSAT, SAT, and/or ACT scores.
* Listing of awards the student has received
* Listing of activities in which the student has participated including documentation of the number of service hours earned and the activities in which these hours were earned
* Scholarship essays
* Letters of reference for the student
* Financial need statements/Financial Aid Applications (typically the FAFSA is used to demonstrate financial need and guidance offices are the key high school office for assistance with this document)

Note that the guidance department can not create or even gather all of these items. However, they may maintain records that will support you in completing scholarship applications - whether private or high school provided. They may also maintain copies of these items which you create or provide and may be willing to submit them on your behalf for scholarship applications which require only demographic information (name, address, phone) and numerical data (test scores, class rank, financial need.).

After scholarships are awarded
Students who are awarded scholarships should remember that the people and organizations which award these scholarships do so because they feel that it is important to invest in the future - and in the education of those who will lead the way in the future. However, it is appropriate to thank those who provide these awards if you receive one. The guidance department at your school should be able to provide you with sample thank you letters if you have never written such letters before and should also provide you with the names and contact information to which these letters should be sent.

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