 |
 |
FinAid Terms |
|
|
||
|
|
||
|
|
The
following are common terms and their definitions in the world of financial aid. Academic Year - A time in which a
full-time student should complete two semesters (24 hours), two trimesters, or
three quarters at a college, university, technical or vocational school. Or it
must be at least 36 quarter hours if a program is measured in credit hours. An
academic year is merely a period of time schools use to measure a quantity of
study. Different schools vary in the length of their academic year.
Cost of Education - In addition to tuition, the cost of education includes room and board (on or off campus), books, supplies, transportation and miscellaneous fees. Sometimes called the cost of attendance. Direct Lending - The Direct Lending Program is another approach to delivering educational loans to eligible student borrowers. The terms and conditions governing Direct Loans are similar to the Federal Family Education Loan Program (FFELP) program. The difference is that the federal government lends funds to eligible borrowers through the school, eliminating the role of lenders and guaranty agencies. Students repay their loans directly to the federal government. Not every school participates in this program. Check with the financial aid officer at your institution. If a school is a direct lender, it will determine how a federal student loan is obtained. Eligible Program - A program that meets the U.S. Department of Education's requirements for an eligible program. Enrollment Status - the number of credit hours being attempted by a student. Normally, students must be half-time or more to apply for scholarships. Individual programs will list this criteria. Expected Family Contribution (EFC) - Using Federal Methodology and individual family size and finances, this figure is established to set an available income that can be used by a family for the student's education. Federal Family Education Loan Programs - The Federal Family Education Loan Program (FFELP) was formerly known as the Guaranteed Student Loan (GSL) Program. The FFELP program includes the Federal Stafford Loans (subsidzied and unsubsidized), Federal PLUS Loans, and Federal Consolidation Loans. Funds for these programs are provided by private lenders and the loans are guaranteed by the federal government. Financial Aid Package - The total amount of financial aid (federal and nonfederal) a student receives. Free Application for Federal Student Aid (FAFSA) - The official document used by every college and university to determine eligibility for Federal Student Aid. A copy of this document is often required by a scholarship program. General Education Development (GED) - A certificate students receive if they've passed a specific, approved high school equivalency test. Students who don't have a high school diploma but who have a GED may still qualify for federal student aid. A school that admits students without a high school diploma must make a GED program in the vicinity of the school available to these students and must inform them about the program. Half Time - Institutions that measure progress by credit hours, semesters, trimesters, or quarters call half-time enrollment, enrollment that is at least six semester hours or quarter hours per term. Institutions that measure progress by credit hours but don't use semesters, trimesters, or quarters, call half-time enrollment at least 12 semester hours or 18 quarter hours per year. Institutions that measure progress by clock hours, call half-time enrollment at least 12 hours per week. However, schools may set their minimums higher than these. Independent Student - Must meet one of the following conditions: twenty-four years of age or older; an orphan; a ward of the court; a veteran of the U.S. Armed Forces; is married; has a child; is a graduate or professional student; has serious family circumstances. Loan Default - Failure to repay a loan according to the terms agreed to. Need Analysis - The process of analyzing the household and financial information on the student's financial aid application and calculating the amount the family can be expected to contribute to educational costs. For the federal student assistance programs, the need analysis system is defined by law and results in a number known as the Expected Family Contribution. Professional Judgement - While the method for determining the student's need for federal student aid is defined in the law, it does give the financial aid administrator the flexibility to make individual adjustments based on the administrator's professional judgement. Professional judgement can be used in three areas. The aid administrator can choose to override the student's dependency status to make the student independent, can adjust the components of the student's costs of attendance, and can adjust the data elements used to calculate the student's Expected Family Contribution. These adjustments must be made on a case-by-case basis, and the reasons for the adjustment must be documented in the student's file. Promissory Note - The binding legal document you sign when you get a federal student loan. It lists the conditions under which you're borrowing and the terms of pay back. It will include information about your rate of interest and about any provisions such as cancellation or deferment. It's very important to read this document completely and save it because you'll need it when it comes time to begin repaying your loan. Regular Student - One who is enrolled in an institution whose program's completion leads to a degree or certificate. Generally, to receive aid you must be a regular student. Renewal FAFSA Application - An application that simplifies the process of reapplying for financial aid. Some of the information from the student's previous year application is preprinted on the Renewal FAFSA application. Students do not have to enter new information if the preprinted information is still correct. Satisfactory Academic Progress - To be eligible to receive many forms of student aid, you must maintain satisfactory academic progress toward your degree or certificate. You must meet your school's standards of satisfactory progress. Check with your school to find out its standard. If you're enrolled in a program that's longer than two years, you usually must have a C average by the end of your second year of study or have an standing consistent with your school's graduation requirements. Some scholarships can be taken away if a student is not making measurable progress towards the completion of a course of study. In order to qualify for renewal scholarships, satisfactory academic progress must be maintained. Selective Service Registration - If required by law, you must register, or arrange to register, with the Selective Service to receive federal student aid. The requirement to register applies to males who were born on or after January 1, 1960, are at least 18 years old, are citizens or eligible non-citizens, and are not currently on active duty in the U.S. Armed Forces. (Citizens of the Federated States of Micronesia, the Marshall Islands, or Palau are exempt from registering.) Student Aid Report (SAR) - The federal "output document" printed by a FAFSA processor and mailed to the student. The SAR contains the family's financial and other information reported by the student on the financial aid application. The student's eligibility for aid is indicated by the EFC printed on the front of the SAR. Schools that participate in the Electronic Data Exchange and other services offered by the U.S. Department of Education can receive the information on the SAR through these services. Transcript - All classes taken and all grades received by a student. An official transcript is sent by the school with an original signature of a school official. Verification - A procedure whereby the school checks the information the student reported on the financial aid application, usually by requesting a copy of the tax returns filed by the student, and if applicable, the student's spouse and parent(s). Many schools conduct their own form of verification. In addition, schools must verify students selected through the federal central processing system, following the procedures established by regulation. The FAFSA processor will print an asterisk next to the EFC (on the Student Aid Report) to identify students who have been selected for verification. | |
