Key Terms and Definitions

Scholarships and Grants – gift assistance based on financial need that never has to be repaid.

Work-study Earnings – monthly payments you will receive for the hours you work in the Labor Program. These earnings are considered scholarships/grants, not taxable wages.

Expected Family Contribution (EFC) – the federal government’s assessment of a family’s ability to contribute to your education for a given academic year. this amount is determined from information provided on the FAFSA.

Financial Need – demonstrated eligibility for financial aid as determined by comparing a school’s Cost of Attendance (COA) with the Expected Family Contribution (EFC). This figure establishes the maximum amount of need-based financial aid that can be provided to you from all sources.
COA – EFC = Financial Need.

Free Application for Federal Student Aid (FAFSA) – the aid application all students must file to qualify for federal, state, and the College’s need-based aid programs.

Loans – financial assistance to help you meet your educational expenses while in school. Al of the money you borrow must be repaid, with interest if applicable, and loan repayments usually begin six months after graduation.

Payroll deduction – provides you with an option of paying your term bill by having a portion of your monthly work-study earnings applied to your bill.

Summer Savings – earnings that are saved from summer employment. You are encouraged to save $800 to $1000 that you can apply toward educational costs for the upcoming year.

Term Bill – a bill issued to you that consists of housing, meals, and fees, charged to your Berea College account.

Cost of Attendance (COA) – the total annual amount it should cost a student to attend school. the cost of attendance includes:

  • tuition
  • mandatory fees
  • on-campus housing and meals (or a housing and food allowance for off-campus students)
  • costs for books and supplies
  • transportation
  • personal expenses

COA = direct costs + indirect costs

Direct Costs – includes expenses such as tuition, housing, meals, and fees.

Indirect Costs – includes expenses such as books and supplies, transportation, and personal fees.