Any taxable income as reported on your U.S. income tax return.

Temporary tax credit for tax years 2009 and 2010 created by federal stimulus legislation which replaced the Hope Credit for most taxpayers. The American Opportunity Tax Credit, which was to expire at the end of 2012, was extended through December 2017 by the American Taxpayer Relief Act of 2012.

The American Opportunity Credit is more generous than the Hope Credit and is partially refundable (up to $1,000). The credit, worth up to $2,500 per student in 2010, can be claimed for 100% of the first $2,000 in qualified higher education expenses and 25% of the next $2,000 in college costs. 

A taxpayer whose modified adjusted gross income is $80,000 or less ($160,000 or less for joint filers) can claim the credit for the qualified expenses of an eligible student. The credit is reduced if a taxpayer’s modified adjusted gross income exceeds those amounts. A taxpayer whose modified adjusted gross income is greater than $90,000 ($180,000 for joint filers) cannot claim the credit.

The student must also be enrolled at least half-time, be pursuing an undergraduate degree or other recognized academic credential, and is only available for the first four years of post-secondary education.  

Refer to the IRS website for a list of FAQ's concerning the American Opportunity Tax Credit

An apprenticeship is where a novice works with an expert in the field to gain experience and practical knowledge. In addition to working directly with an expert in the field, apprenticeships also sometimes require some classroom time. Some of the best features of apprenticeships are: you don’t rack up as much debt as many college students do, you often get paid during your apprenticeship, almost all of the training is hands-on, and you receive a career-specific certification upon graduation of the apprenticeship. According the United States Department of Labor, the Registered Apprenticeship program offers apprenticeships in approximately 1,000 careers, and they specifically highlight the most popular ones:

• Able Seaman
• Carpenter
• Chef
• Child care development specialist
• Construction craft laborer
• Dental assistant
• Electrician
• Elevator constructor
• Fire medic
• Law enforcement agent
• Over-the-road truck driver
• Pipefitter

To learn more about apprenticeships and the U.S. Department of Labor’s Registered Apprenticeship programs, go here: http://www.doleta.gov/oa/apprentices_new.cfm

A commuter student is one who does not live on campus, and instead either lives at home with parents or off campus in their own apartment or house.

The COA (Cost of Attendance) is the sum figured by each institution for one year of attendance. Each college calculates this differently, but they are required to include:

• Tuition and fees payable to the institution
• Books and supplies
• Room and board
• Personal expenses, transportation 

The CSS/Profile (College Scholarship Service Profile) is a secondary financial aid form required by some colleges and collects family information not contained on the FAFSA, thus giving participating colleges an additional and closer look into a family’s financial background. There is a fee for the CSS/Profile and the form changes every year. Colleges using the CSS/Profile also run the Institutional Methodology for use in allocating institutional financial aid.

The difference between a college’s Cost of Attendance and the student’s Expected Family Contribution (EFC).

For federal aid purposes, all students who do not meet one of the qualifying criteria for Independent Student status are considered Dependent Students and must report both parent and student financial information on the Free Application for Federal Student Aid, or FAFSA.

(Formerly Stafford Loan) Federal student loans awarded on the basis of financial need that is not met by federal Pell Grants, Federal Supplemental Educational Opportunity Grants, state grants, or other forms of financial aid. Financial need is determined by completion of the FAFSA. With Direct Subsidized Student Loans, the student does not have to pay any principal while in school more than half time and the government pays the interest during this time. 

(Formerly Stafford Loan) Federal student loans awarded without regard to financial need. The FAFSA must be filed in order to obtain this loan; there is no qualifying income for parents or students. Unlike Direct Subsidized Student Loans, the student is charged interest from the time the loan is disbursed until it is paid in full, including in-school, grace and deferment periods. However, students typically have the option of compounding interest during these periods and adding that to the loan principal that is paid back after graduation or upon leaving school, or dropping below half-time status.

In general, a person may be considered a dislocated worker if he or she:

• is receiving unemployment benefits due to being laid off or losing a job and is unlikely to return to a previous occupation;
• has been laid off or received a lay-off notice from a job;
• was self-employed but is now unemployed due to economic conditions or natural disaster; or
• is a displaced homemaker. A displaced homemaker is generally a person who previously provided unpaid services to the family (e.g., a stay-at-home mom or dad), is no longer supported by the husband or wife, is unemployed or underemployed, and is having trouble finding or upgrading employment.

If a person quits work, generally he or she is not considered a dislocated worker even if, for example, the person is receiving unemployment benefits.

The Early Action option enables students to receive a college’s admission decision early but it is not a “binding” agreement to enroll. Students still may apply to other colleges. A student may accept the offer early or wait as late as the spring to finalize their decision.

The Early Decision option is for students who are certain of the college they wish to attend. This choice is considered a morally “binding” commitment to enroll if accepted to the college, and if it offers an adequate financial aid package. Students interested in financial aid typically will submit an early financial aid form and are notified of the financial aid award at the time they are accepted. Students will still be required to file the FAFSA after January 1 for the upcoming academic year, and new financial aid awards may be provided based upon the FAFSA information. Students may be released from this commitment ONLY for financial reasons.

Generally, you are an eligible noncitizen if you are (1) a permanent U.S. resident with a Permanent Resident Card (I-551); (2) a conditional permanent resident (I-551c); or (3) the holder of an Arrival-Departure Record (I-94) from the Department of Homeland Security showing any one of the following designations: "Refugee," "Asylum Granted," "Parolee" (I-94 confirms that you were paroled for a minimum of one year and status has not expired), "Victim of human trafficking," T-Visa holder (T-1, T-2, T-3, etc.) or "Cuban-Haitian Entrant."

Indiana Code  31-34-20-6

Emancipation of child; findings; terms

Sec. 6.
(a) The juvenile court may emancipate a child under section 1(5) of this chapter if the court finds that the child:

1. wishes to be free from parental control and protection and no longer needs that control and protection;
2. has sufficient money for the child's own support;
3. understands the consequences of being free from parental control and protection; and
4. has an acceptable plan for independent living.

(b) If the juvenile court partially or completely emancipates the child, the court shall specify the terms of the emancipation, which may include the following:

1. Suspension of the parent's or guardian's duty to support the child. In this case the judgment of emancipation supersedes the support order of a court.
2. Suspension of the following:
   1. The parent's or guardian's right to the control or custody of the child.
   2. The parent's right to the child's earnings.
3. Empowering the child to consent to marriage.
4. Empowering the child to consent to military enlistment.
5. Empowering the child to consent to:
   1. Medical;
   2. Psychological;
   3. Psychiatric;
   4. Educational; or
   5. Social;
      services.
6. Empowering the child to contract.
7. Empowering the child to own property.

(c) An emancipated child remains subject to the following:

1. IC 20-33-2 concerning compulsory school attendance.
2. The continuing jurisdiction of the court.

Total amount of money a student/family is supposedly able to contribute toward college costs in a given academic year according to the Federal Methodology

. Your EFC is calculated each year after filing the FAFSA, and is used by the federal government, your state, and colleges to determine eligibility for need-based gift aid. Typically the lower the EFC, the higher the need-based gift. Remember that the federal formula used to calculate the EFC doesn't just look at parent income and assets, but also looks at the student's income and assets. To determine your need, a college will look at the total Cost of Attendance (COA) and subtract your EFC. So, for instance:

COA=$20,000
EFC=$5,000
Total Need= $15,000 

Again, to get your EFC you must file the FAFSA (www.fafsa.gov). Everyone thinking of going to college should file a FAFSA.  

The federal Social Security and Medicare taxes taken out of workers’ wages.

The federal formula that is used to determine a student’s EFC.

• Formula used to figure a student’s eligibility for federal grants, loans and/or work-study programs.
• Many states use the same formula to determine a student’s eligibility for state grants, and many colleges use it to award their need-based scholarships.

The FSEOG Program provides need-based grants (up to $4,000 per year) to low-income undergraduate students to promote access to postsecondary education. Institutional financial aid administrators at participating institutions have substantial flexibility in determining the amount of FSEOG awards to provide students who are enrolled or accepted for enrollment. Priority is given to those students with "exceptional need" (those with the lowest Expected Family Contributions at the institution) and those who are also federal Pell Grant recipients.

A campus-based part-time employment program which provides jobs for undergraduate and graduate students who are in need of such earnings to meet a portion of their educational expenses. Note: these are job-related earnings that are excluded from the Federal Methodology in calculating a student’s EFC for the next academic year.

This is a document that a college or university will send you that outlines the types and amounts of aid that you can use to fill the gap between the net price of the institution and your EFC. For example, if the college costs $20,000 per year, and your EFC is $5,000, the college will try to fill the remaining $15,000 with grants, scholarships and/or loans. Not all colleges will fill the entire difference between the net price and your EFC, though.  When they don't, this is called "gapping."

You also typically have the option of declining some of the sources of financial aid that the college packages in the award letter. If you decline some sources of financial aid, don't expect the other sources to go up. For instance, if you decline the sub/unsubsidized loans, don't expect the institutional grant money to increase.

Keep an eye out for financial aid award letters to come in the mail around late March or early April.

The Frank O'Bannon Grant (formerly the Indiana Higher Education Grant) Program is designed to provide access for Hoosier students to attend eligible postsecondary institutions. The grants, targeted to tuition and regularly assessed fees, are "need-based" and do not require repayment. The program receives its funding through appropriations made by the Indiana General Assembly. Due to variations in appropriations, the number of filers and the "need" of the filer base, the dollar value of state grants may vary from year to year. To qualify, students must:

• Be an Indiana resident by December 31st the year prior to applying 
• Be a U.S. Citizen or eligible noncitizen
• Be a high school graduate or hold a GED
• Attend, or plan to attend, an eligible college or university.
• Be enrolled, or plan to enroll, in a course of study leading to an associates or first bachelors degree;
• Be a full-time student, or plan to enroll as a full-time student (defined as at least 12 credit hours per term); and
• Fill out the FAFSA - by March 10 of the academic year preceding the academic year the applicant plans to enroll

Note: A separate part-time state grant is available for students enrolled on a part-time basis. It is specifically designed to help those undergraduates who are taking at least 3 but less than 12 credit hours per term at an eligible institution. The students must meet State residency requirements, have filed a FAFSA and otherwise qualify for State aid. The part-time grant is a need-based award.

Federal form a student must file in order to qualify for federal funds, state grants and college need-based financial aid.

• This form must be filed each year beginning in the spring of a student’s senior year of high school.
• The information provided on the FAFSA is used to calculate a student’s Expected Family Contribution, or EFC.
• The information used to fill out the FAFSA should be taken from tax return information from the calendar year prior to the academic year for which the student is applying for financial aid (e.g., 2015 calendar year tax information for the 2016-2017academic year). 
• To file the FAFSA, you go to www.fafsa.gov

Gapping occurs when the financial aid package offered by an individual college does not satisfy all of the demonstrated financial need of a student. In turn, this creates a “gap” of money that could possibly be added to a student’s EFC.
For example:

A trademarked acronym used for the General Educational Development Tests, a battery of examinations administered by states and jurisdictions to measure the skills and knowledge similar to a high school course of study. GED graduates earn a GED credential. The type of credential issued, diploma or certificate, varies by state.

Whenever you see the term "gift aid" you should immediately understand that this form of financial aid does not have to be repaid--it is a gift to you. Grants and scholarships are examples of gift aid.

For those families that own a home, they may be able to borrow against the net worth of the home or the “home equity.” (Home equity is defined as the home’s value minus any debt still owed against it.) If you consider this option, the lender that holds the current mortgage on your home may be the best place to start since you already have a credit relationship established. You should also discuss with your accountant the possible tax benefits of a home equity loan used to help pay for college costs.

Homeless: Lacking fixed, regular and adequate housing.
At risk of being homeless: Housing may cease to be fixed, regular, and adequate e.g. student is being evicted and has been unable to find fixed, regular, and adequate housing.  

Tax credit that can be used for the first two years of undergraduate study which was replaced by the American Opportunity Credit in 2009 for most students, except those attending an eligible institution in a Midwestern disaster relief area

The Hope Credit is a non-refundable credit worth up to $1,800 ($3,600 if a student is in a Midwestern disaster area) per eligible student. In 2009, the Hope Credit was phased out for taxpayers with modified adjusted gross income (AGI) between $50,000 and $60,000 (single filers) and between $100,000 and $120,000 (married filing jointly). The Hope Credit is not available for tax year 2010, as it was temporarily replaced by the American Opportunity Credit.

One of the most costly expenses when talking about college is housing. There are three housing types: on campus, off campus, and off campus with parents—each with its own cost and financial aid formula. Some colleges will offer all three, others will require all freshmen to live on campus their first year (or all four years), and other colleges are non-residential. Make sure you know the policy of the school you plan to attend. If you plan to live at home and commute, make sure that is an option before you make your final decision. Assuming the college you plan to attend does offer the option to live off campus you will also need to see if doing so will change the financial aid award. Parents may assume the award will remain the same and just deduct the room & board costs, but that could be a costly mistake. Do your homework! Contact the financial aid office and see what changes, if any, occur if your student forgoes staying in on-campus housing. The answer to this question could be a deal breaker for some students, so make sure to call the financial aid office before you make any assumptions.

Independent Students are considered independent of their parents for financial aid purposes. Generally, a student is deemed independent if they meet one or more of the following criteria: 

• Is at least 24 years old as of December 31st of the academic year for which the FAFSA is filed.
• Is married or separated (but not divorced) as of the date of the application.
• Is a graduate or professional student (not an undergraduate student). 
• Is currently serving on active duty in the U.S. Armed Forces for purposes other than training.
• Is a veteran of the U.S. Armed Forces.
• Has children who will receive more than half of their support from you.
• Has dependents (other than your children or spouse) who live with the student and who receive more than half of their support from the student during the academic year in question.
• At any time since the student turned age 13 both parents have become deceased (even if subsequently adopted), student was in foster care, or was a dependent or ward of the court.
• Are or were an emancipated minor as determined by a court in Indiana the day the student turned 18 (or the day you file the FAFSA if not yet 18 years of age).
• Are or were in legal guardianship (of someone other than a biological parent) as determined by a court in Indiana the day the student turned 18 (or the day the student files the FAFSA if not yet 18 years of age).
• Has been, at any time on or after July 1, 2014, classified by a high school or school district homeless liaison, the director of an emergency shelter or transitional housing program, or the director of a runaway or homeless youth center as an unaccompanied youth who was homeless or at risk of homelessness.  

Note: A Financial Aid Administrator can make a determination of independence with documentation of special circumstances, even if the student initially filed as a dependent student. This is called a Professional Judgement. If you filed as a dependent student, but think your situation has changed, please contact the financial aid office at the school(s) you are applying to or attend. 

A second financial aid formula used by some colleges and universities that looks at additional assets and/or resources in a student’s household and assesses income and assets in a different manner than the Federal Methodology. 

• Use of an “Institutional Methodology” won’t affect federal or state need-based grants but it may mean the college will expect more (or less) money overall from a family.
• Colleges using an Institutional Methodology typically will require students to complete a second financial aid form, usually the CSS/Profile or a specific institutional form.  

Internships are another good way to acquire experience in a job-related setting and connect the classroom and the workplace. Not all internships are paid, but those that are become an additional financial resource for the student and family.

A person appointed by a court to have the care and custody of a child and/or the child's estate.

Tax credit available for an unlimited number of years which can be used for all years of postsecondary education and for courses to acquire or improve job skills.

The Lifetime Learning Credit is a nonrefundable credit worth up to $2,000 (20% of the first $10,000 in qualified education expenses) per tax return. The Lifetime Learning Credit is phased out for taxpayers with modified adjusted gross income (AGI) between $50,000 and $60,000 (single filers) and between $100,000 and $120,000 (married filing jointly). A student does not have to be enrolled in a degree program to qualify for this credit. 

Financial aid based on a student’s talents, performance, academic merit and/or other select characteristics. Depending on the college, merit-based scholarships may be awarded for academics, athletics, extracurricular involvement, art, theatre, music, journalism and more. Residency, future job plans, alumni ties and other factors also can be criteria for awarding some merit-based financial aid. Merit-based financial aid also is available from private sources such as community foundations, service organizations and others.

Financial aid based on student/family financial circumstances. Residency, future job plans, alumni ties and other factors also can be criteria for awarding some need-based grants and scholarships.

Why do I need to know about Net Price Calculators? Have you ever wondered what it might cost to go to a particular college? Have you ever wondered how much scholarship a school might give you, given your financial and academic history? Wait no more! As of October 29, 2011 the federal government required that all colleges accepting first-time, full-time students must post Net Price Calculators to their websites. They are did this to try and increase transparency about how much it will actually cost to attend an institution.

Wait, But What is a Net Price Calculator? The Net Price Calculator must, at a minimum, show consumers a historical (historical=data from an entire prior year) median net price after gift aid for that institution. To get to that median net price, the colleges must first determine their COA (cost of attendance). Every college in the country must show students and families the cost of attendance, broken up into:

• Tuition and fees
• Room and board
• Books and supplies
• Transportation and miscellaneous expenses (ex: laptop fee)

Where Can I Go to Learn More?

• If you would like to learn more about Net Price Calculators you can visit the National Center for Educational Statistics website at: nces.ed.gov/ipeds/netpricecalculator/

Contribution expected from the income and assets of the parent(s) and/or stepparent in the student’s household.

A need-based federal grant given to undergraduate students based on the student’s Expected Family Contribution (EFC), which must be below a specified threshold; can be used at eligible colleges around the country.

The Federal Perkins Loan Program provides low-interest (5%) loans to help needy students finance the costs of postsecondary education (up to $5500 per year for undergraduates). Institutional financial aid administrators at participating institutions have substantial flexibility in determining the amount of Perkins loans to award to students who are enrolled or accepted for enrollment, but priority is given to those students with “exceptional need” (those with the lowest Expected Family Contributions) and those who are also federal Pell Grant recipients.

A U.S. resident who is the holder of a Permanent Resident Card (I-551).

Loans available to parents who are credit-worthy. Student must be a dependent undergraduate student enrolled at least half-time for parent PLUS borrowing.  Loans dispersed on or after July 1, 2015 are currently fixed at a 6.84% interest rate. Also:  

• The annual borrowing limit = student’s cost of attendance minus any other financial aid received.
• Students whose parents cannot obtain a PLUS loan may be eligible to take out additional funds through the Direct Student Loan program. 

Professional Judgement refers to the authority of a school's financial aid director to take into account unusual personal (e.g., job loss) or financial (e.g., unusual medical expenses) circumstances and to make adjustments to the data elements on the FAFSA, potentially change the students EFC and to override a student's dependency status. A Professional Judgement made by a financial aid director would only apply to their particular college or university.

This type of financial aid includes the various types of loans (Federal Direct Loan, PLUS Loan, Perkins Loan, etc.) that the student will be required to pay back and Federal Work Study, which are funds that the student will be required to earn through working.

Special report that is processed and sent to a student after the FAFSA is filed, showing the student’s EFC and the data elements provided on the FAFSA that were used to calculate the EFC.

• Copies of the report also are sent to the student’s state grant agency and the colleges the student lists on the FAFSA.  

Contribution from any assets (cash, checking, savings, investments, trust fund, etc.) in the student’s name (and/or Social Security number).

Contribution expected from student income (if the student earns more money in a calendar year than the amount allowed under the Federal Methodology).

Tax deduction for interest paid on student loans exclusively used to cover qualified higher education expenses

The Student Loan Interest Deduction can reduce taxable income up to $2,500 for interest paid during a given tax year on a student loan taken out specifically for college costs. The deduction is phased out for taxpayers with modified adjusted gross income (AGI) between $60,000 and $75,000 (single filers) and between $120,000 and $150,000 (married filing jointly). The student for whom the loan was taken out must be enrolled at least half time in a degree program to qualify for this deduction. 

Many times, schools will do what is called “superscoring,” which means they will take the best test scores from each section and combine them. For instance, if on your first attempt at the SAT you get a 400 on verbal, 400 on reading and 600 on math, and then on your second attempt at the test you get a 500 on verbal, 500 on reading and a 500 on math, they will take the highest, so your score at a school that superscores would be: 500 on verbal, 500 on reading, and 600 on math. This is also why a student should consider taking the test(s) more than once.

This program is called the Teacher Education Assistance for College and Higher Education Grant. Students interested in teaching must:

• Fill out the FAFSA;
• Have at least a 3.25 GPA or qualifying score on the admissions test;
• Agree to teach full time at a school serving a high percentage of low income students for at least 4 years within 8 years of graduating;
• Agree to teach a specific subject.

Undergraduates are eligible for a maximum of $4,000 each year ($16,000 aggregate limit). If a student receives a TEACH grant and then decides not to fulfill the program requirements, the grant funds will turn into a Direct Subsidized Loan.

This is a special scholarship program for Indiana undergraduate students who are income-eligible in 7^th or 8^th grade and who enroll in the program by the end of their 8^th grade year.  Students must fulfill a pledge of good citizenship to the state and in return are guaranteed up to the cost of four years of undergraduate college tuition and mandatory fees at any participating public college or university in Indiana.  If the student attends a private institution, the state will award an amount comparable to that of the public institution.  To be eligible for the Twenty-first Century Scholars Program, students must:

• Be a resident of Indiana as an applicant and award recipient (determined by residency of parent/legal guardian) and be a U.S. citizen or eligible non-citizen.

• Be enrolled in 7^th or 8^th grad at a charter school, freeway school or other Indiana school recognized by the Indiana Department of Education.

• Class of 2016, graduate with a diploma (Core 40 recommended), from a high school recognized by the Indiana Department of Education (GED and home school programs are excluded) with a cumulative GPA of a 2.5 on a 4.0 scale.

• Starting with the Class of 2017, must graduate with at least a Core 40 diploma from a high school recognized by the Indiana Department of Education (GED and home school programs are excluded) with a cumulative GPA of a 2.5 on a 4.0 scale.

• Eligibility for enrollment will be based on household income or placement in foster care.

• Applications can be found online at www.scholars.in.gov

• Starting with the Class of 2017 students must complete the Scholar Success Program.   The program helps students plan, prepare and pay for college.  High school Scholars must complete three activities online each year.

• Students that enrolled as a Scholar AFTER 6-30-2011 will be means tested financially.  Means testing will be based on the Scholar’s Expected Family contribution (EFC) that will be evaluated annually based on information provided on the student’s Free Application for Federal Student Aid (FAFSA).  Scholars who do not demonstrate financial need will receive a one-time award of up to $2,500 if the student has not previously received the 21^st Century Scholarship.

• A Scholar must enroll as a full-time student at an eligible Indiana higher education institution within one year of high school graduation.

• Scholarship funds must be used within eight (8) years from the time a student first activates the 21^st Century Scholarship.  Note that the total scholarship amount is limited to the equivalent of four years (eight semesters) of full-time college attendance.

• As a Scholar in college, 21^st Century Scholars must complete at least 30 credits each academic year in order to receive their full scholarship award.