A
Academic Credit
The unit of measurement an institution gives to a student
when (s)he fulfills course or subject requirements as determined
by the institution.
Academic Year
This is a measure of the academic work to be accomplished
by a student. The school defines its own academic year, but
the federal regulations set minimum standards for the purpose
of determining student financial aid awards. For instance,
the academic year at a term school must be at least 30 weeks
of institutional time in which a full-time student is expected
to complete at least 24 semester or trimester hours or 36
quarter hours or 900 clock hours.
Achievements
This series of tests evaluates a student's knowledge of certain
specific subjects. Check with each college or university to
see which ones require the Achievements for entrance. See
SAT II.
ACT
This exam is administered by American College Testing. It's
widely used in the West and Midwest for purposes of evaluating
your preparedness for college.
AP
These are advanced placement tests, which are administered
by the Educational Testing Service. They're given every spring
in a variety of subjects. Scores earned on AP tests may often
be applied towards college credits.
Assets
Cash on hand in checking and savings accounts; trusts, stocks,
bonds, other securities; real estate (excluding home), income-producing
property, business equipment, and business inventory. Considered
in determining expected family contribution (EFC) under the
regular need analysis formula for financial aid.
Award Letter
This is a specific notification listing the amount of financial
assistance offered to a student through financial aid programs
to pay for education costs.
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B
Byrd Scholarship
A federally sponsored, merit-based scholarship for academically
outstanding high school students.
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C
Campus-Based Programs
The term commonly applied to those US Department of Education
federal student aid programs administered by institutions
of post-secondary education. It includes Federal Perkins Loans,
Federal Supplemental Educational Opportunity Grants (FSEOG),
and Federal Work-Study Program.
College Work-Study Program
This program is a federal
or institutionally-funded employment program that provides
jobs, generally 10-15 hours per week, for students who are
in need of earnings to meet a portion of their educational
expenses
Cooperative Education
Some college programs offer paid opportunities to gain professional,
full-time work experience while in college.
Cost of Attendance
This is the total amount of time needed to cover educational
expenses, including tuition, fees, housing, food plan, books,
supplies, transportation, and personal expenses.
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D
Deferment of Loan
A period during which the repayment of the loan is suspended
because the borrower meets certain eligibility requirements.
Dependency Status
Students are classified as either dependent (requiring parent
financial information) or independent (requiring only the
student/spouse financial information.
Disbursement
The process by which financial aid funds are made available
to students for use in meeting educational and related living
expenses. Funds may be disbursed directly to the student,
or applied to the student's account.
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E
Early Admission
This is a program under which gifted high school juniors who
have exhausted what their school can offer academically, skip
their senior year and go on to college.
Early Decision
This is a program under which a student applies to a school,
usually prior to the normal application deadline, and agrees
to attend, if admitted, assuming the financial package is
acceptable.
Enrollment Status
At those institutions using semesters, trimesters, quarters,
or other academic terms and measuring progress by credit hours,
enrollment status equals a student's credit hour workload
categorized as either full-time, three-quarter-time, half-time,
or less than half-time.
Expected Family Contribution (EFC)
The amount of the family's resources (income and assets) that
the federal financial aid formula deems is available to help
pay for school.
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F
Federal Parent Loan for Undergraduate Students (PLUS)
A federally guaranteed, low-interest loan for parents to assist
with college costs. Eligibility is based on credit-worthiness.
(Some colleges participate in a similar option called the
Direct Loan Program.)
Federal Pell Grant
Federal grant program for undergraduate students who demonstrate
financial need and have not yet completed a first baccalaureate
course of study.
Federal Perkins Loan
A low-interest federal loan (5%) for students with exceptional
financial need (as determined by the college.)
Federal Stafford Loan
Federally guaranteed, low-interest rate loan for students.
There are two types of Federal Stafford Loans, a subsidized
(need-based) and unsubsidized (non-need-based). Both types
allow deferment of payments until a student leaves school.
The interest on a subsidized loan is paid by the government
while the student is in school, whereas with unsubsidized
loans, the interest begins when the loan is funded but payments
can be deferred until principal payments begin. (Some colleges
offer a similar option called the Direct Loan Program.
Federal Supplemental Educational Opportunity Grant (FSEOG)
Federal grants for students with exceptional financial need
(as determined by the college). Approximately 5% of undergraduates
are recipients of FSEOG.
Financial Aid Administrator
An individual responsible for preparing and communicating
information pertaining to student loans, grants, or scholarships
and employment programs, and for advising, awarding, reporting,
counseling, and supervising office functions related to student
financial aid. (S)he 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 making changes while necessary.
Financial Aid Package
This is the amount of financial aid a student receives. Most
types of need
and non-need-based aid such as grants, loans, and work-study
are listed on an award letter. Generally, the award letter
gives students the opportunity to accept or decline the aid
offered.
Financial Need
This is the difference between the total college costs and
a family's expected family contribution (EFC).
Free Application for Federal Student Aid (FAFSA)
Thiis form is required of all students to apply for aid and
determines need-based and other forms of financial aid.
FAFSA Express
New electronic method for students to apply directly to the
Department of Education for Title IV aid.
Full-time Student
Generally, one who takes a minimum of 12 semester or quarter
hours per academic term in the institutions with standard
academic terms, or 24 clock hours per week in institutions
which measure progress in terms of clock hours.
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G
Gift Aid
Types of financial aid that do not require either repayment
or work to be performed.
Grace Period
The period of time that begins when a loan recipient ceases
to be at least half-time and ends when repayment starts. Loan
principal need not be paid, and generally, interest doesn't
accrue during this period.
Grant
A type of financial aid that does not need to be repaid; usually
awarded on the basis of need, possibly combined with some
skills or characteristics the student possesses.
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I
Independent Student
A student who has attained age 24, or who has not attained
age 24 but who:
- is an orphan
- is a ward of the court
- is a veteran
- is married or is a graduate or professional student
- has legal dependents other than a spouse
- presents documentation of other unusual circumstances
demonstrating independence to the student financial aid
administrator.
Internships
Part-time and full-time opportunities to gain professional
work experience while in college. Some interns are paid; others
gain college credits.
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L
Loan
An advance of funds which is evidenced by a promissory note
requiring the recipient to repay the specified amount(s) under
prescribed conditions.
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M
Merit-Based Assistance
Any form of financial aid awarded on the basis of merit and
not based on a demonstrated financial need.
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N
Need Analysis
The process used by a college to evaluate an applicant's financial
resources and determine how much the student or family can
pay toward the cost of education.
Need-Sensitive
A college takes into consideration an applicant's ability
to pay before admitting him/her. Most schools admit the bulk
of their classes on the strength of the applicant's record,
not ability to pay. However, some colleges become need-sensitive
when they consider certain applicants.
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P
Parents' Contribution
A quantitative estimate of the parents' ability to contribute
to post-secondary educational costs.
Part-Time Student
One who attends an institution on less than a full-time basis
as defined by the institution.
Paul Douglas Teacher Scholarship
Scholarship program administered by the states to enable and
encourage outstanding high school graduates who demonstrate
an interest in teaching to pursue teaching careers at the
elementary and secondary levels.
PLAN
This is the preliminary ACT. It'll prepare you for the ACT
and it includes a variety of questions that may help further
define your interests and abilities in a variety of areas.
PROFILE
The CSS/Financial Aid PROFILE application is used by many
colleges to gather information to help them award private,
non-federal student aid funds
Promissory Note
A legally binding document a student signs before receiving
loan funds. The Promissory Note defines the terms of the loan
and obligates the borrower to repay the funds.
PSAT/NMSQT
This is the Preliminary Scholastic Aptitude Test and National
Merit Scholarship Qualifying Test. It prepares you for the
SAT, and it must be taken your junior year in order for you
to be considered for National Merit Scholarships.
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R
Repayment Schedule
List of monthly loan repayments that outlines both principal
and interest charges.
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S
SAT I
This test replaced the SAT in March 1994. It's a reasoning
test that measures your general readiness for college, rather
than your knowledge of a specific subject matter.
SAT II
This test replaced the Achievements beginning with March 1994
test date. See Achievements.
Scholarship
A form of financial assistance which does not require repayment
or employment and is usually made to students who demonstrate
or show potential for distinction, usually in academic performance,
at the institution.
Scholarships for Disadvantaged Students (SDS)
A federal scholarship program designed to assist disadvantaged
students enrolled in certain health professions disciplines.
Self-Help Assistance
Funds provided through the work and effort of the student,
including savings from past earnings, income from present
earnings, or a loan to be repaid from future earnings.
Self-Help Expectation
The assumption that a student has an obligation to help pay
for a portion of his/her education.
Simplified Needs Test
An alternate method of calculating the expected family contribution
for families with adjusted gross incomes of less than $50,000,
who have filed or are eligible to file an IRS Form 1040A or
1040 EZ, or are not required to file an income tax return.
Excludes all assets from consideration.
State Student Incentive Grant (SSIG)
State scholarship or grant assistance for postsecondary students
with substantial financial need.
Statement of Educational Purpose
Statement signed by the student financial aid recipient indicating
his or her agreement to use all of the financial aid funds
awarded for education or educationally-related purposes only.
Statement of Selective Service Registration
A document male students must sign for federal, need-based
assistance in which students notate that they have registered
with the Selective Service if required to do so.
Student Aid Report (SAR)
The official 2/3 part notification sent to the student as
a result of filing the FAFSA. Students may be required to
submit this document to the financial aid office at the college
they decide to attend.
Student Contribution
A quantitative estimate of the student's ability to contribute
to postsecondary education expenses.
Student Financial Aid
Funds awarded to a student to help meet postsecondary education
expenses. These funds are generally awarded on the basis of
financial need and include scholarships, grants, loans, and
employment.
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T
TOEFL
This is a test of English as a Foreign Language. It's designed
to evaluate international students' abilities to communicate
in and understand English.
Tuition Discounting
This term, normally applied to merit awards, reduces the cost
of attending an institution. However, any grant can be viewed
as a discount from a school's published tuition.
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V
Verification
The process of confirming information submitted on student
aid applications thorough the comparison of specified documents
to the data on the Student Aid Report or other applications
for student aid. Many schools conduct their own verification.
Veterans Educational Benefits
Assistance programs for veterans and service person for education
or training.
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W
Ward of the Court
A person who is under the care of the court.
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