Here is a "dictionary" of Financial Aid terms you may not be familiar with.

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Academic Year (AY):

A period of time in which a full-time student is expected to complete the equivalent of two semesters, two trimesters, or three quarters at institutions using credit hours or at least 900 clock hours of training for each program at institutions using clock hours.

Allocation:

The federal student aid funds made available to an institution each year to award to eligible students.

Anticipated Graduation Date:

The date indicated by the school at the time the student applies for a Stafford loan, as the date on which he/she will graduate from that school.

Award Letter:

The document issued to a student financial aid recipient that indicates the type, amount, and disbursement dates of the funds awarded from the various financial aid programs, and the conditions which govern the award.

Award Modification:

An action by the Student Financial Aid office resulting in an increase, decrease, program substitution, or cancellation of a recipient’s award. This may be necessitated by a change in the student’s dependency status, or change in financial circumstances of the family or student, etc.

Award Year:

The period of time between July 1 of one year and June 30 of the following year.

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Campus-Based Financial Aid Programs:

Financial aid programs administered by postsecondary institutions. Includes: National Direct Student Loan, supplemental Education Opportunity Grant, and College Work-Study Programs. These programs are referred to as "campus-based" because they are managed directly by schools rather than by ED.

Citizen of the United States:

A citizen of the United States or an eligible non-citizen who owes permanent allegiance to the Unites States.

Collection Agency:

An organized business that accepts loan accounts that have become delinquent or are in default from lenders and attempts to collect on those accounts. A fee is charged for this service.

College Work-Study Program (CWSP or CWS):

Part-time employment program, authorized by Title IV-C of the Higher Education Act, for U.S. citizens and permanent residents who are at least half-time students and demonstrate financial need. The maximum amount a student can earn under this federal program is determined by the financial need.

Commuting Students:

Usually refers to a student who resides with his/her parents or family. (See also “Resident Student.”)

Cost of Attendance/Education:

Historically, this includes the tuition and fees applicable to a student, together with the institution’s estimation of other expenses related to attendance, including but not limited to, the cost of room and board, reasonable transportation and commuting costs, and costs for books and supplies.

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Default:

See “Loans – Default”

Deferment of Loan:

See “Loans – Deferment”

Delinquent Notice:

See “Loans – Delinquent”

Deobligation Notice:

Schools might not use their total allocations of campus-based funds during an award year. If they do not, they are required to return unexpended allocations of federal funds to ED so that the money can be reallocated to schools that need additional campus-based funds as supplemental allocations. This release of unexpended allocated funds is called "deobligation."

Department Scholarship:

An award of gift assistance that is specially designated for a recipient in a particular department within the College or University.

Dependent Student:

A student who is dependent upon his/her parent(s) for financial support or who does not meet the criteria for classification as an independent or self-supporting student. (See the independent student definition.)

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Educational Expenses (or Costs):

Those expenses that are necessary and allowable for the student to attend the institution. See “Student Expense Budgets” for a fuller description.

Emergency Loans:

Those funds advanced to students for a short term to resolve unanticipated financial needs.

Entrance Interview:

See “Loan – Interviews”

Exit Interviews:

See “Loan – Interviews”

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Federal Insured Student Loan (FISL):

See “Guaranteed Student Loan Program” also known as the Stafford Loan

Federal Register (F.R.):

The daily publication of the U.S. Government which contains proposed, interim, or final rules/regulations/guidelines for the implementation of Federal legislation.

Financial Aid Administrator (FAA):

An individual at an institution of higher learning for preparing and communicating information pertaining to student loans, grants or scholarships, and employment programs, and for advising, awarding, reporting, counseling and office functions related to student financial aid. He/she is accountable to the various publics which are involved, is a manager or administrator who interprets and implements federal, state, and institutional policies and regulations and is capable of analyzing student and employee needs and makes changes where needed.

Financial Aid Award:

An offer of financial assistance, either gift aid or self help aid, to help a student meet postsecondary educational expenses.

Financial Aid Package:

A financial aid award to a student from a combination of two or more forms of financial aid ( i.e., scholarships + grants + work study + loans).

Financial Aid Transcript (FAT):

A document used to collect information about financial aid a student may have received at a previous education institution. It can be viewed on the Student Aid Report.

Financial Need:

The difference between a School’s cost of attendance and a family’s expected family contribution.

Fiscal Year (FY):

The period of time, twelve months in length, over which the fiscal activities and accounting of financial aid office are conducted.

Full-Time Student (FT):

Generally, a student is considered full-time if he/she is carrying any combination of courses, research, or special studies which, according to the standards and practices of the institution in which the student is enrolled, and is considered full-time study. At the under graduate level normally 12 credit hours constitutes full time

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Gift Aid:

Student financial aid that does not require repayment of that work performed. This generally includes grants and scholarships.

Good Standing:

The eligibility of a student to continue attending the institution in which he/she is enrolled in accordance with the standards of the institution.

Grace Period:

A 6 to 9 month period before the borrower enters the repayment period.

Graduate or Professional Student:

A student enrolled in an academic program of study above the baccalaureate level at an institution of higher education, including a) A program leading to a first professional degree if the institution requires at least 3 years of study at the college level for entrance into the program; and b) The fifth and later years of any program requiring more than 4 years of study at the college level.

Guarantee Agency:

A state agency or private, non-profit institution or organization which administers a student loan insurance program.

Guaranteed Student Loan Program (GSLP):

Low-interest educational loans made pursuant to Title IV-B of the Higher Education Act, to students attending postsecondary educational institutions. These loans, also referred to as Stafford Loans, are available through banks, credit unions, savings and loan associations, and state and guarantee agencies, etc.

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Independent, Self-Supporting Student:

A student who for the calendar year(s) of the award year for which aid is requested or the calendar year before the first calendar year of the award year needs to meet the following criteria: 1) Cannot be claimed as an exemption for Federal income tax purposes by his /her parent(s) for any one of these years; 2) Is married or has a dependent. 3) Is over 24 years old. 4) Is a veteran 5) Is a ward of the court 6) Has an undergraduate degree.

Loans:

Money provided to students and parents which they promise to repay. Plus, Stafford, Perkins and alternative are the most common loans.

Loan – Billing:

Institutions may use a billing service (an outside agency or organization) to contact borrowers, send billings regularly, receive payments and provide information when required.

Loans – Cancellation:

The forgiveness of all or part of a loan by fulfilling certain terms contained in the promissory note, i.e., teaching, military service, etc.

Loans – Collections:

When a borrower repays his/her loans to the lender the monies coming back to the lender are referred to as collections. In many cases these funds are re-lent to other students.

Loans – Defaults:

Generally, when a student borrower fails to make an installment payment when due or does not comply with some terms note so the Commissioner of Education can reasonably conclude that the borrower no longer intends to repay the loan.

Loans – Deferments:

When a student borrower meets conditions for postponing his/her loan principal and interest payments for a specified period of time it is referred to as deferred.

Loans – Delinquent:

A student loan which is more than 120 days past due in the case of loans repayable in monthly installments, or more than 180 days in the case of loans repayable in less frequent installments.

Loans – Interviews:

Meetings with the borrower to discuss his/her rights and responsibilities for repayment of the loan and to gather information about the borrower which may assist in collecting the loan. Generally these are held before the loan is disbursed (entrance interview) and when the student leaves the institution (exit interview). These are mostly done online, however Perkins loan interviews are done in person by the student.

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Matured Loans:

The total principal amount of all loans made minus the principal amount of the loans to students who are a) Enrolled as at least half-time students in institutions of higher education; or b) Still in their grace period (the grace period is the 9 month period beginning when a student ceases half-time attendance in an institution of higher education).

National Direct Student Loan Program (NDSL):

The student loan program by Title IV-E of the Higher Education Act. The act that encourage colleges to act as lenders.

Need Analysis:

The process used to evaluate an applicant’s financial situation to determine how much student aid he/she needs to help meet postsecondary educational expenses. This analysis involves both an evaluation of institutional costs and total resources available to the student. This can use the Federal Methodology or Institutional Methodology. There is the possibility that there will be a third formula used by the Ivy League schools.

Nonprofit Institutions:

An institution owned and operated by one or more nonprofit corporations or associations where no part of the net earnings of the institution benefits any private shareholder or individual.

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Parent:

A student’s natural, step or adoptive mother or father.

Parents’ Contribution:

The part of the expected family contribution which the parent(s) are expected to provide according to the need analysis.

Pell Grant:

The federal entitlement grant program authorized by title IV-A-1 of the Higher Education Act and awarded on the basis of exceptional demonstrated financial need.

Promissory Note:

The legal document that binds the borrower to the repayment obligations, the terms of the act, and the federal regulations and policies which govern the program. Recognized equivalent of a higher school diploma: a) A general Education Development Certificate (GED); or b) A state certification received after passing a state authorized examination, which that state recognizes as the equivalent of a high school diploma.

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Refund:

The amount a student who withdraws or fails to pursue his/her course of study receives when funds have been paid to the institution.

Repayment Schedule:

A plan, which should be attached to the promissory note at the time a borrower ceases at least half-time study, which sets forth the principal and interest due on each installment and the number of payments required to pay the loan in full.

Resident Student:

A student who does not live at home (with parent(s) or guardian) during the academic year. An off-campus resident student is one who lives in institutionally-provided housing. An on-campus resident student is one who lives in housing facilities owned and/or maintained by the institution.

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Satisfactory Progress:

The condition in which a student is making measurable progress toward the completion of a course of study, according to the standards of the institution in which the student is enrolled.

Scholarship:

A from of financial assistance which does not require repayment or employment and is usually made to a student who shows potential for distinction, usually in academic, athletic, performance or art in the institution. Also called Merit Aid or Gift Aid.

Self-Help Assistance:

Funds provided through the work and effort of the student him/herself, including savings from present earnings or a lien on future earnings.

Student Contribution:

For dependent students; the amount the student is expected to contribute from summer earnings, previous savings, and other resources such as Social Security, Veterans and War Orphans benefits. For Independent students; the student contribution represents the total funds considered to be available to the student after meeting living expenses and that can be directed toward educational costs during the year.

Student Aid Report:

A student’s official notification of the results of processing his/her Pell application. This document is the result of the information provided on the Free Application For Federal Student Aid ( FAFSA).

Student Expense Budget:

All expenses which are reasonably related to a student’s attendance at a postsecondary institution for a specified period of time. The components of student expense budgets include: tuition and fees, cost of room and board, cost of books and supplies, cost of transportation, and personal expenses. Other costs which may be included, depending on the individual student’s circumstances, are for example: costs related to handicap child’s education costs, child maintenance/care, etc.

Student Financial Aid (SFA):

Funds awarded to a student to help meet postsecondary educational expenses. These funds are awarded on the basis of financial need and include scholarships, grants, loans, and employment.

Student Resources:

The funds available to the student to meet educational costs from sources such as student employment, savings, trust accounts, real estate, checking accounts, child support, alimony, V.A. benefits, Social Security benefits, personal loans, welfare, Aid to dependent Children; or spouse’s earnings for married students.

Supplemental Educational Opportunity Grant (SEOG):

Grants to students who have exceptional financial need. These grants are awarded by the institution directly to the student as authorized by Title IV-A-2 of the Higher Education Act. These grants are usually in conjunction with a Pell Grant.

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Total Educational Costs:

The amount of funds the institution of postsecondary education has determined will be required by a student to complete a given academic year, term, semester, quarter, etc. (Usually referred to as the student budget).

Totally and permanently disabled:

Unable to engage in any substantial gainful activity because of a medically determinable impairment that is expected to continue for a long and indefinite period of time or to result in death.

Truth-in-Lending Statement:

The document provided to loan recipients that states the interest rate and other information relative to the loan the student has received. The use of the statement is required by the Consumer Credit Act.

Undergraduate Student:

A student enrolled in an undergraduate course of study at an institution of higher education who a) Has not been awarded a bachelor or first professional degree; and b) Is in an undergraduate course of study that usually does not exceed 4 years, or is enrolled in a 5-year program designed to lead to a first degree. A student enrolled in any other length program is considered an undergraduate student for the first 4 years.

Unmet Need:

The difference between resources sufficient to meet the measured needs of students in postsecondary education and the total available resources.

Validation:

The U.S. Office of Education Selects certain Pell Grant SAR’s for verification of the information contained on the application. This selection process is both at random and by reviewing the data submitted for accuracy. Each SAR must be reviewed individually and confirmed by the institution before payment may be made to the student.

Veteran:

A person who served on active duty in the U.S. Armed Forces and was discharged or released under conditions other than dishonorable.

Work-Study Authorization:

The dollar amount which is awarded to a student for a specific academic period, to be earned through employment either in the institution or in a public non-profit community organization. The authorization may include employment during summer months or other periods when classes are not in session.

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