GLOSSARY

 

 

 

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

 

Academic Probation   Undergraduate students are placed on academic probation when their cumulative grade point average drops below 2.0, usually based on six or more credit hours. Students placed on academic probation must maintain a grade point average of 2.0, or higher, per semester, until the cumulative grade point deficiency is removed or they will be placed on academic suspension.

 

Academic Suspension   An undergraduate student who has been placed on academic probation and fails to meet the terms of probation is suspended from the college or university for the succeeding semester/term. The student must obtain readmission approval from the appropriate dean before they can reenroll in classes. Approval for future awards of both federal and nonfederal grants and loans will be greatly jeopardized.

 

Academic Year   A period of time in which a student must complete a specific number of semester hours as dictated by the school. The length of an academic year may vary from school to school, and from program to program.  

 

Accelerated Payment/Prepayment   Paying in advance all or part of a loan before it is due (does not take the place of regularly scheduled payments).

 

Accrued Interest   The amount of money that accumulates on the unpaid principal balance of the loan from the day the loan is dispersed.

 

ACT   This is a three-hour entrance exam given by colleges to measures achievement in English, math, reading, and science. The American College Testing program administers the ACT. An average score on each section is about 21.

 

Advanced Placement Credit   While still in high school, students take college level courses taught by their high school teachers and receive college credit for the class. The Educational Testing Service offers the tests in the spring.

 

Advanced Placement Tests   These are tests given at the conclusion of study in an Advanced Placement course. Certain colleges award college credit or advanced standing when students achieve sufficiently high scores.

 

Application Process   When filing an application for financial aid, timing is crucial in order to obtain the maximum amount of money possible. Specific steps must be completed in a specific order that varies depending on the type of assistance sought. Students should seek advice from the financial aid office, at least one year prior to enrollment, at the college/university they plan to attend.

 

Associate's Degree   A degree given by a college or university to a person who has completed a specific course of undergraduate study. Usually requires two years of study and ranks below a Bachelor's degree.

 

Auditing a Class   Attending a class without receiving credit for the course or eligibility for taking the advanced standing examination for the course. Auditing can be used to review a difficult course prior to attending the course for credit.

 

Awards   Financial awards are given for specific achievements; usually given for winning some type of contest, and do not have to be repaid. The dollar amount can vary from a couple of hundred to several thousand dollars.

 

Award Letter   The official document describing the financial aid package and the amounts of aid offered to the student.

 

Bachelor's Degree   A degree given by a college or university to a person who has completed a four-year course of undergraduate study. Ranks above an Associate's degree and below the Master's and Doctoral degrees.

 

Bankruptcy   A person is legally declared bankrupt when they are unable to pay debts. Whatever real property the person owns may be sold and the money gained divided among creditors. Federal loans made to students are not relieved through bankruptcy.

 

Borrower   The person who receives a loan and is legally responsible for repayment.

 

Budget   A plan that adjusts expenses during a certain period of time to match the estimated or fixed income for that period of time.

 

Campus-Based Aid   Federal money allocated annually to individual colleges and universities to finance three educational loan programs. They are the Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study Program (FWS), and the Federal Perkins Loan Program. The programs are administered directly by the financial aid office at each participating school. Not all schools participate in all three programs.

 

Capitalization of Interest   If the interest is not paid on a loan each month, that interest amount will be added (capitalized) to the principal amount (original total) of the loan, and the additional interest will be based upon the higher amount. If interest is capitalized, it will increase the amount the student will have to repay.

 

CLEP Test   College-Level Examination Program is a great way to help reduce college costs by gaining credit for advanced knowledge in certain subject areas. High school students can apply to take any CLEP test and obtain college credits without taking formal courses. Numerous study guides for these tests can be purchased at larger bookstores.

 

Cost of Attendance (COA) The total amount it will cost a student to attend a school. The COA is usually expressed as a yearly figure and is determined by a standard formula established by the U.S. Congress. The COA includes tuition, fees, room/board, food, books, supplies, and miscellaneous expenses.

 

College Board   A nonprofit 100-year-old membership association of more than 3,800

colleges, universities, and other educational associations. The College Board provides information on the PSAT/NMSQT and the SAT, test dates and deadlines, and other forms of information that students and parents need to plan for the transition from high school to college.

 

College Class Rankings

College Financial Aid Officer   The person who manages federal and nonfederal financial aid programs. Contacting this person at the college or university the student plans to attend will be their best source for financial information. Some schools may call this person the Financial Aid Administrator or the Financial Aid Counselor.

 

Consequences of Default   Action taken against a borrower who fails to repay a loan as promised. Lender or agency that holds the loan may choose to take legal actions to recover the loan money.  The lender may notify the national credit bureaus of the student’s default; may have their employer garnish their wages; may have the Internal Revenue Service withhold their income tax refunds; or may file legal changes against them.

 

Consolidation   Refinancing (combining) multiple education loans into one new loan. Consolidating multiple loans will restructure the payment schedule, loan terms, and possibly the interest rate.

 

Cooperative Work-Study Education Program   Students alternate terms between full-time school enrollment and full-time employment that is related to the student’s course of study. Co-op allows the student to earn money to offset the cost of school. The co-op program will add one year of college time (five years to complete a Bachelor’s degree instead of four) and will give the student work experience in their field of study prior to graduation. 

 

Cosigner   The person who signs the loan agreement or promissory note along with the borrower. If the borrower fails to repay the loan, then the cosigner must do so.

 

Credit-worthy   A person that has a positive credit history.

 

Deadline Dates   Almost everything involved with college has some sort of deadline date that students must comply with in order to be eligible for whatever it is they are seeking. Since dates change, it is useless to list them. What a student must do is start researching well in advance (a year is not too soon!) of their desired college start date.  Learn the application deadlines for college applications, Federal and State loans, housing lists, health exams, and so forth.

 

Default   Failure to repay a loan according to the terms agreed to when the borrower signed the promissory note.

 

Deferment   Allows the borrower to temporarily postpone payments on an educational loan. A subsidized loan will not be charged interest during the deferment. An unsubsidized loan will be charged interest that will be capitalized if not paid monthly. (This is the same as forbearance.)

 

Deferred Admission - Students who have alternate plans for the year following high school may apply to many colleges for deferred admission. The application process and timetable remain the same as for regular admission. The college usually requires an explanation of how the student plans to spend the year away from college and the benefits the student expects to derive from it. The information will be used to justify holding a seat for the student.

 

Delinquency   Failure to make monthly loan payments as scheduled and is effective with the first missed payment.

 

Dependent Student   A student who is under 24 years of age, has no legal dependents, is not married, is not a ward of the court, is not an orphan, is not in the U.S. Armed Forces, and whose parents provide more than half of their financial support.

 

Direct Loan Program   Consists of Federal Direct Consolidated Loans, Federal Direct Plus loans, and both subsidized and unsubsidized Federal Direct Stafford Loans. The federal government makes loans directly through participating schools, not private lenders, which manage the funds. The official name for this program is the William D. Ford Federal Direct Loan Program but it is more commonly known as the Direct Loan Program. 

 

Disclosure Statement   A legal document provided by the lending institution that shows a detailed statement of the total cost of the loan, interest rate, and any additional fees being charged.

 

Disbursement of Funds   For a Direct Loan, the U.S. Department of Education will pay a student through their school. For a FFEL Stafford Loan, the lender will send the loan funds to the student’s school. In most cases, the loan will be disbursed in at least two installments, no installment being greater than half the amount of the loan. The loan money must first be used to pay for tuition, fees, room, and board. If loan money remains, the student receives the funds by check or in cash unless you give the school written permission to hold the funds until later in the enrollment period.

 

Doctoral Degree   A degree given by a university to a person who has completed a specific course of graduate study. Ranks above Associate's, Bachelor's, and Master's degrees.

 

Early Action   Students indicate a first choice college and receive a decision in the senior year well in advance of the normal response date in the spring. However, students are not committed to enroll if accepted. It is not good protocol to apply to more than one college at a time on this plan.

 

Early Admission   Some colleges accept exceptional students applying for entrance directly after their junior year of high school. With early admission, the college application and admission process is accelerated and simplified.

 

Early Admission Decision   Students who have demonstrated sound academic ability apply for admission to their first choice college during the summer or very early in their senior year.

Notification of admission is usually given in December or January instead of the traditional March or April dates. Generally, if you apply early decision, you must also sign a commitment to attend the college if accepted and to withdraw any applications submitted to other colleges.

 

Educational Loans   Loans that are made, by a variety of sources, and must be repaid with interest. Loans may be obtained from the federal government, state government, and private lenders regardless of financial needs. These loans are established with lower interest rates, and most may be repaid after graduation.

 

Eligible Non-Citizen   Someone who is not a U.S. citizen but is eligible for Federal student aid. Non-citizens must have arrived in the US with an I-94 and show one of the following designations in order to be eligible for student aid:  Refugee, Asylum Granted, Indefinite Parole, Humanitarian Parole, Cuban-Haitian Entrant Status Pending, or Conditional Entrant issued before April 1, 1980. If you have only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), student visas, or an exchange visitor visa, you are not eligible for federal student aid.

 

Eligible Program   A course of study that leads to a degree or certificate and meets the requirements set forth by the U.S. Department of Education.

 

Employer Assistance   Many companies now offer tuition assistance programs to employees and even to family members of employees. Employees are reimbursed on a structured scale based on grades; usually something like 100% for “A”, 75% “B” and so forth. Family members may work part-time for the employer in exchange for tuition assistance.

 

Endowment   A gift of money or property to a college/university to provide income to support the institution. Portions of endowment income are often given as financial aid gifts to eligible students. 

 

Enrollment Status   A student’s level of educational involvement in an institution most commonly defined as part-time or full-time

 

Entrance Interview   Students accepting educational loans are required to meet with a financial aid administrator before they receive their first loan disbursement, and again, in an exit interview, before they graduate to discuss the loan details. This may also be referred to as a loan interview.

 

Exchange Contract (2:1 Contracts)   Private companies may contract with the student to pay for their college education. In exchange, the student will repay the cost by agreeing to work for the company for a specific amount of time, usually two years for each year of college. This type of contract can be tricky and can quickly create a financial hardship because the student must immediately repay any money given to them if they change their major, quit college, or don’t work for the company after graduation.

 

Exit Interview   Students accepting educational loans are required to meet with a financial aid administrator before they graduate to discuss the loan repayment details.

This may also be referred to as a loan interview.

 

Expected Family Contribution (EFC)   The financial amount a family is believed capable of contributing to a student’s education. The EFC is calculated using a nationally standardized formula that is established by Congress.

 

Extended Repayment Plan (ERP)   The Direct Loan Program offers four repayment plans that are available to borrowers of Direct Stafford Loans. This repayment plan allows the student to extend loan repayments over a period that is generally 12 to 30 years, depending on the loan amount. The monthly payment may be lower than that under the Standard Repayment Plan, but the student will repay a higher total amount of interest because the repayment period is longer than it is under the Standard Repayment Plan. The minimum monthly payment is $50.

 

FAFSA (Free Application for Federal Student Aid)   The official form that must be completed by students and/or parents applying for Federal Title IV student aid.

 

Federal Family Education Loan Program (FFELP)   Stafford, Plus, and Consolidation loans are financed by private lenders and guaranteed by the federal government.

 

Federal Student Aid Information Center   The main agency able to provide students with state appropriate phone numbers, addresses, and other information regarding Federal loans.

 

Federal Student Financial Assistance (SFA) Programs   Financial support provided by the Federal Government for students enrolled in a college or university. SFA programs are based on financial need and have deadlines for the application process. All programs may not be available at some institutions. The college or university Financial Aid Officer controls all Federal Assistance Programs. Contacting this person would be the student’s best source for information.

 

Federal Supplemental Educational Opportunity Grant  (SEOG)   Grants ranging from a hundred to several thousand dollars per year for undergraduates showing exceptional financial need.

 

Fellowship   Gift aid which does not have to be repaid and is awarded to graduate students to assist financially with further education in a specific field of study. There is a wide variety of fellowships available and range in assistance from tuition waivers to paying for tuition, as well as providing a small monthly stipend.

 

Financial Aid   Financial assistance obtained for a student’s college/university education. May be in the form a financial awards, scholarships, grants, work-study programs, and educational loans.

 

Financial Aid Administrator/Counselor   The person who manages federal and non-federal financial aid programs. Contacting this person at the college or university the student plans to attend will be their best source for financial information. Some schools may call this person the College Financial Aid Officer or the Financial Aid Counselor.

 

Financial Aid Package   The total amount of financial aid a student receives. The package includes both federal and non-federal financial aid offered to the student.

 

Financial Aid Transcript   The official record of all educational financial federal aid received by a student at each school attended.

 

Financial Need   The financial aid administrator calculates the student’s cost of attendance (COA) and subtracts the amount they and their family are expected to contribute (EFC) toward that cost. If there is any cost left over, the student is considered to have financial need.

 

Fixed Interest   Interest rate remains the same throughout the life of the loan.

 

Forbearance   Allows the borrower to temporarily postpone payments on an educational loan. A subsidized loan will not be charged interest during the deferment. An unsubsidized loan will be charged interest that will be capitalized if not paid monthly. (This is the same as deferment.)

 

General Education Development (GED) Certificate   Official certificate students receive in lieu of a high school diploma if they pass the GED equivalency test. A student with a GED is eligible for federal and non-federal financial aid.

 

Gift Aid   Financial aid to support a student’s college education. Gift aid money does not need to be repaid and may be in the form of an award, grant, scholarship, or fellowship.

 

Grace Period   After a student graduates, leaves school, or drops below half-time enrollment; they have six months before they begin repayment of federal student aid loans. This is called a "grace period."

 

Grade Point Average (GPA)   The accumulation of points for grades earned in educational institutions. The GPA is calculated by dividing the total number of grade points by the total number of credits attempted, and only involves those credits that count toward graduation.

 

Graduate Student   A student attending a university (postsecondary institution) who is enrolled in a master’s or higher-level degree program.

 

Graduated Payment Plan (GPP)   The Direct Loan Program offers four repayment plans that are available to borrowers of Direct Stafford Loans. With this plan the student’s payments will be lower at first and then increase generally every two years. The length of the repayment period will generally range from 12 to 30 years, depending on their loan amount. The monthly payment may range from 50 percent to 150 percent of what it would be if they were repaying the same total loan amount under the Standard Repayment Plan. However, the student will repay a higher total amount of interest because the repayment period is longer than it is under the Standard Repayment Plan.

 

Grants   Similar to awards in that they are given for specific reasons and do not have to be repaid. A grant may be awarded based on organizational membership, financial need, minority status, etc.

 

Gross Income   Family income before taxes and other deductions are subtracted.

 

Guaranty Agency   The organization that administers the Federal Family Education Loan (FFEL) Program for each state. Each agency is free to set its own limitations based on federal guidelines so individual state agencies should be contacted for information.

 

Half Time Student   At least 6 hours per term for schools using the semester, trimester, or quarter system; at least 12 semester hours or 18 quarter hours per year for schools using credit hours; at least 12 hours per week for schools using clock hours.

 

Health Education Assistance Loans (HEAL)   Loans that is available to graduate students in any health profession.

 

Health Professions Student Loans (HPSL)   Low interest loans for graduate students in any health profession and who demonstrate an exceptional financial need.

 

Holder   The private or public institution that owns the loan and controls the loan’s legal agreement.

 

Income   All money received by an individual/family from employment services, pensions, disability pay, Social Security, Welfare, child support, from property investments and/or operations, and other sources.

 

Income Contingent Repayment Plan (ICRP)   The Direct Loan Program offers four repayment plans that are available to borrowers of Direct Stafford Loans. This plan bases your monthly payment on your yearly income, family size, and loan amount. As the student’s income rises or falls, so do the payments. After 25 years, any remaining balance on the loan will be forgiven, but the student may have to pay taxes on the amount forgiven.

 

Independent Undergraduate Student   A student who is either 24 years of age or older, is married, has legal dependents other than a spouse, is a ward of the court, is an orphan, or is a veteran of the U.S. Armed Forces.

 

Institutional Methodology   A formula developed by an individual institution and used to determine financial need for allocation of the school’s own financial aid funds.

 

Insurance Fee   A one-time fee charged by guarantee agencies and is used to ensure against defaulted loans.

 

Interest Capitalization (same as capitalization of interest)   If the interest is not paid on a loan each month, the monthly interest amount will be added (capitalized) to the principal balance of the loan and the additional interest will be based upon the higher amount (principal balance). If interest is capitalized it will increase the amount the student will have to repay.

 

Interest Only Payment   A monthly payment that covers the accrued interest of a loan and not the principal balance.

 

Interest Rate   The amount charged by an agency that lends money. The interest rate on federal student aid loans will not exceed 8.25%, but private lending company rates may vary.

 

Internship   A program in which students receive supervised practical training in their field of study. The program may be part of the required curriculum or a part-time job held during the academic year.

 

JJ - no terms listed

 

KK - no terms listed

 

Lender   The financial institution or school that provides the money to make a loan to the borrower.

 

Loan   Money that is accepted as financial aid and must be repaid with interest to the lending institution.

 

Loan Forgiveness   Many states will let a student end their loan payments permanently if they enter certain professions the state is trying to develop, or professions where there is a critical shortage of workers in the state. The most common professions in the loan forgiveness areas are in education and healthcare.

 

Loan Interview   Students accepting educational loans are required to meet with a financial aid administrator before they receive their first loan disbursement and again before they graduate to discuss the loan repayment details. This may also be referred to as an entrance interview and exit interview.

 

Master's Degree   A degree given by a college or university to a person who has completed a specific course of graduate study. Ranks above Associate's and Bachelor's degrees and below the Doctoral degree.

 

Merit-Based   A means of determining eligibility for certain types of financial aid rather than evaluation of financial need. Areas of merit include specific personal achievements, awards, personal character, and talents.

 

National Merit Scholarship Corporation (NMSC)   An independent not-for-profit organization that operates without government assistance. NMSC conducts privately financed annual competitions for recognition and college undergraduate scholarships. Thousands of scholarships are awarded annually making this company one of the best sources for gift aid.

 

Need   The difference between the Expected Family Contribution (EFC) and the Cost of Attendance (COA) is the student’s financial need.

 

Need-Based   A means of determining eligibility for certain types of financial aid using financial need as the determining factor.

 

Nellie Mae   Largest non-profit provider of educational loans, not based on financial need.

 

Net Income   Income after taxes, deductions, and allowances have been subtracted.

 

Nonresident   For tuition purposes, is defined as an individual 18 years of age or older, or a dependent that has not lived in the state for a 12-month period immediately proceeding the date of registration.

 

Oath of Residency   For the purpose of tuition, before a student may register at an institution of higher education, the student must affirm under oath to the appropriate individual of that institution that they are a resident of the state and, if necessary, provide proof.

 

Open Admission   When colleges accept most or all of the students who apply for admittance. The students must meet or exceed the basic admission standards. Most often used by junior and community colleges.

 

Origination Center/Location   The location where the initial loan application, processing, and disbursement of funds occur.

 

Origination Fee   A fee paid by the borrower and deducted from the principal of a loan prior to the borrower receiving the money. This fee covers the cost of administering and insuring loan programs.

 

Over-award   The amount of a loan that exceeds the borrower’s educational need.

 

Parent Loans for Undergraduate Students (PLUS)   Federally insured loans available through the William D. Ford Federal Direct Loan Program and the Federal Family Education Loan (FFEL) Program. Most of the benefits to parent borrowers are identical in the two programs.

 

Parent’s Contribution (PC)   The amount of income a student’s parents can be expected to contribute to the student’s annual education cost as determined by the Federal Methodology.

 

Pell Grant   The largest federal grant program with awards made only to undergraduate students who have not earned a bachelor's or professional degree. Amount of award is determined by the U.S. Department of Education who uses a standard formula, established by Congress, to evaluate the information reported on the student’s application.

 

Perkins Loan   A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Using funds provided by the government, the school makes the loan.

 

Poor Credit Risk   A person who has a credit record showing: payment delinquencies on bills, car payments, credit cards, or loan accounts; repossessions of purchases; foreclosures; bankruptcy; and other such derogatory marks.

 

Postsecondary   Refers to official educational school programs that can be taken by high school graduates and includes colleges, universities, technical schools, and vocational schools. The educational outcome of a postsecondary school is a certificate, diploma, or degree.

 

Prepayment/Accelerated Payment   Paying in advance all or part of a loan before it is due, does not take the place of regularly scheduled payments.

 

Principal Balance   The actual amount of money borrowed, this is also the amount on which the interest is calculated.

 

Private Loan   Loans made by banks, credit unions, and other financial institutions and are not sponsored or insured by government agencies.

 

Profile   Colleges having their own funds to disburse may require this customized financial aid application in order to review a student’s financial need more in-depth. Since profiles take a closer look at family finances there is an increased possibility of receiving higher awards.

 

PhD   Doctorate of Philosophy.

 

Promissory Note   Document that outlines the conditions under which the money is borrowed and the terms under which the borrower will repay the loan. This is a legal and binding document signed by the borrower.

 

Proprietary School   Private postsecondary school that is legally permitted to make a profit.

 

PSAT/NMSQT   Preliminary Scholastic Assessment Test (PSAT) and the National Merit Scholastic Qualifying Test (NMSQT) measure reading, math problem solving, and writing skills developed throughout a student’s life. It does not measure personal creativity. This is a co-sponsored program between the College Board and the National Merit Scholarship Corporation (NMSC).

 

QQ - no terms

 

Regular Admission Decision  This is the most common admission practice used by institutions. The college accepts applications from prospective students and delays the admission decision until all applications have been reviewed. Decision letters are mailed to all applicants on the same day, traditionally in March or April.

 

Regular Student   A student enrolled in an institution to obtain a degree or certificate.

 

Renewal Application   After the initial FAFSA application has expired; renewal applications are then file yearly as needed.

 

Reserve Officer Training School (ROTC)   Scholarship program that combines military education with a baccalaureate degree study. The Department of Military Science provides a program of leadership development that prepares college men and women for service as officers in the United States Military. After graduation, they serve as commissioned officers on active duty, or as an officer in a military Reserve or National Guard unit.

 

Resident   For tuition purposes, is defined as an individual 18 years of age or older or a dependent that has lived in the state for a 12-month period immediately proceeding the date of registration.

 

Rolling Admission   As soon as an application is complete and fees are paid, a decision is made and the student is notified of their admission status. It is generally advantageous for students to apply well in advance of the posted deadline because it is impossible to know how quickly the available spaces are being filled.

 

SASE   Self Addressed Stamped Envelope. If a student has a request for an SASE and they do not enclose one in their correspondence they will not receive a reply.

 

SAT I   Test administered in the junior and senior high school grades that measure general math, problem solving, and verbal comprehension skills of the student. An average score on each section is about 500. Thus, a combined score of about 1000 is an average score.

 

SAT II   Different from the SAT I in that these test evaluate knowledge in a particular subject area and are taken in one hour instead of three hours. Currently, there are 19 test subjects offered. About a third of all colleges requiring the SAT I scores will also require two or three of these subject test, usually an additional math, writing, and one test of the student’s choice. The SAT-II tests are very important to students applying on an early decision basis to selective colleges.

 

SSN   Social Security Number. An individual number assigned by the Social Security Administration Office. The SSN is use to keep a record of an individual’s earnings. The SSN is obtained by completing an application and providing documents that show the persons name, birthplace, and birth date.

 

Satisfactory Academic Progress   Meeting a school’s written standard of academic progress. A condition that must be met by the student in order for the student to be/remain eligible for federal aid.

 

Selective Service Registration   Registration for the military draft. This registration is required by law and applies to males who were born on or after January 1, 1960 and are not currently on active duty status with the US Armed Forces. It is also a requirement for eligibility to receive federal student aid.

 

Scholarships   Are generally awarded for specific achievements in academics or sports and do not have to be repaid. It is important to understand that a student does not have to be a straight “A” student, win every contest, or be a “Jock” to receive a scholarship. There are literally thousands of scholarships available.

 

Self-Help Aid   Financial aid obtained by a student to assist with their educational cost. The aid may be in the form of loans or money obtained from the student’s employment

 

Special Career Programs   Some states offer grants and subsidized loans if a student enters a program of study in a career field showing critical shortage for the state. Some programs will assume part or all of an educational loan debt in exchange for public service for a certain number of years (similar to loan forgiveness programs). The most common service areas are in education, public health, and healthcare.

 

Stafford Loan   Educational loans, both subsidized and unsubsidized, guaranteed by the federal government. Direct and FFEL Stafford Loans are the major forms of self-help aid.

 

Standard Repayment Plan (SRP)   The Direct Loan Program offers four repayment plans that are available to borrowers of Direct Stafford Loans. These repayment plans requires the student to pay a fixed amount each month, at least $50, for up to 10 years. The length of the actual repayment period will depend on the loan amount.

 

State Aid   Every state awards aid based on need, and some aid based on merit, to help fill the financial aid gap. To get information on state aid the individual state’s educational agency must be contacted.

 

Statement of Educational Purpose   A legal document, signed by the student borrower, in which the student agrees to use all the financial aid received for educational expenses only.

 

Student Aid Report (SAR)   The official document, sent by the application processor, that notifies a student of their eligibility for federal aid. The SAR acknowledges receipt of the FAFSA and confirms its information, so it must be read carefully and the information corrected where needed. 

 

Subsidized Loans   The federal government subsidizes the interest rate of the student aid loan so that no interest is charged to the loan before the student begins repayment of the loan. Subsidized loans are awarded based on financial need to students enrolled at least halftime.

 

TASP   The Texas Academic Skills Program test measures reading, math, and writing skills of students entering Texas public colleges and universities. Under certain conditions the TASP is waived. The two most common waivers are previously earned college credits and sufficiently high scores on the SAT-I or the ACT.

 

Test of English as a Foreign Language (TOEFL)   English proficiency test for international students planning to study in the United States, Canada, and other countries where English is used in an academic environment.

 

Transcript   An official document, maintained by educational institutions, listing all the courses that a student has taken at a particular school, and the grade earned for each of the courses.

 

Tuition   The amount of money charged by an institution for instruction of a student and use of the institution’s facilities.

 

Tuition Reciprocity   Some states allow students from other states to pay the reduced tuition that in-state residents pay.

 

Undergraduate Student   A degree seeking student attending a college or university who has not earned a bachelor’s degree.

 

United States Department of Education (may see it listed as ED, DOE, USED, DE)  The governmental agency that administers the federal student aid programs, including the Federal Pell Grant, the Federal Perkins Loan, the Federal Family Education Loan Program, and the Federal Direct and Stafford Loan Programs.

 

United State Department of Health and Human Services (may see it listed as DHHS, HHS)   Government agency that administers several low interest health education loan programs. The most prominent programs are the Health Professions Student Loan Program, the Nursing Student Loan Program, and the Health Education Assistance Loan Program.

 

Unsubsidized Loans   Loans that are not based on financial need. With unsubsidized loans, interest is charged on the loan from the day the loan is dispersed until the day the loan is paid in full. The borrower may choose to pay the interest while in school or the interest will be capitalized.

 

Variable Interest   Interest rate changes periodically as established by the lending institution.

 

Verification Worksheet   An official worksheet. Student Aid Report applications are chosen at random by the U.S. Department of Education to verify information provided is correct. The verification worksheet must be completed and sent with other documents to the college finance aid office.

 

Veteran   A former member of the U.S. Armed Forces who served on active duty and was honorably discharged.

 

Veteran Dependent   Spouse and/or children, meeting the criteria of dependent status, of a former member of the U.S. Armed Forces who served on active duty and was honorably discharged.