Financial Aid and Scholarships Flashcards

What is a 'gapping' strategy some colleges use in financial aid?

Answer: Intentionally not meeting a student's full demonstrated financial need

Gapping occurs when a college's aid package does not fully cover the difference between COA and EFC, leaving the student with an unmet need gap.

Which strategy is MOST appropriate when a family wishes to appeal a financial aid award?

Answer: Submit a formal professional judgment request with documentation of special circumstances

A professional judgment (PJ) appeal, supported by documentation of unusual circumstances, is the proper channel to request a revised aid offer.

The FAFSA uses the 'prior-prior year' (PPY) tax data. For the 2025–26 FAFSA, which tax year is used?

Answer: 2023

The prior-prior year rule means the 2025–26 FAFSA uses 2023 tax data (two years prior), enabling earlier completion with finalized tax returns.

An educational planner's client is a divorced student whose custodial parent remarried. Whose income is reported on the FAFSA?

Answer: The custodial parent and stepparent if they are married

FAFSA requires the custodial parent's information, and if that parent is remarried, the stepparent's financial data must also be included.

What does Satisfactory Academic Progress (SAP) typically require for federal aid eligibility?

Answer: Meeting minimum GPA, pace of completion, and maximum timeframe standards

SAP policies require students to maintain a minimum GPA, complete a percentage of attempted credits, and finish their degree within 150% of the normal program length.

Which type of scholarship is awarded specifically to students enrolled in education preparation programs who agree to teach in high-need fields or schools?

Answer: TEACH Grant

The TEACH Grant awards up to $4,000 per year to students who commit to teaching in high-need subject areas at low-income schools; failure to complete service converts it to a loan.

A family's home equity is reported on the CSS Profile but not on the FAFSA. This difference means:

Answer: Institutional aid packages at CSS Profile schools may be lower for families with significant home equity

Because the CSS Profile counts home equity as an asset, families with high home values may receive less institutional aid from schools using the CSS Profile formula.