Financial Aid 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
Select the first letter of the word from the list above to jump to appropriate section.
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ACADEMIC YEAR: A period of at least 30 weeks of instructional time during which a full-time student is expected to complete at least 24 semester or trimester hours, or at least 36 quarter hours, at an institution that measures program length in credit hours; or at least 900 clock hours at an institution that measures program length in clock hours.
ACCRUAL DATE: The day interest charges on an educational loan begin to accrue.
AID CHANGE FORM: The form a student can submit to change their housing status; decline, increase, or reduce aid for a semester or entire year. Student can also submit outside aid on this form.
AID YEAR: Financial aid for each academic calendar year includes Fall, Spring, and Summer term.
ALTERNATIVE LOAN: Private Loans, also known as Alternative Loans, help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete. Private loans tend to cost more than the loans offered by the Federal government.
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BUDGET TUITION PLAN: Tuition payment plans are short-term installment plans that split your tuition into equal monthly payments.
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CAPITALIZATION: The process of adding unpaid interest to the principal balance of an educational loan, thereby increasing the total amount to be repaid.
CITIZEN/ELIGIBLE NONCITIZEN: You must be one of the following to receive federal student aid:
- U.S. Citizen
- U.S. national (includes natives of American Samoa or Swain's Island)
- U.S. permanent resident with an I-151, I-551, or I-551C (Alien Registration Receipt Card)
If you're not in one of these categories, you must have an Arrival-Departure Record (I-94) from the U.S. Immigration and Naturalization Service (INS) showing one of the following designations:
- Refugee
- Asylum Granted
- Indefinite Parole and/or Humanitarian Parole
- Cuban-Haitian Entrant, Status Pending
- Conditional Entrant (valid only if issued before April 1, 1980)
- Other eligible non citizen with a Temporary Resident Card (I-688)
Permanent residents of the Trust Territory of the Pacific (Pall) may be eligible for federal student aid. Citizens of the Federated States of Micronesia and the Marshall Islands are eligible for Pell Grants, SEOG, or Work Study only. You are NOT eligible for federal financial aid if you only have a Notice of Approval to Apply for Permanent Residence (I-171 or I-464A), or if you are in the U.S. on an F1, F2, J1, J2, or G series visa.
CONSOLIDATION: A loan program that allows a borrower to combine various educational loans into one new loan. By extending the repayment period (up to 30 years depending on the loan amount) and allowing a single monthly payment, consolidation can make loan repayment easier for some borrowers.
COST OF ATTENDANCE (COA): The total amount it should cost a student to go to school--usually expressed as a yearly figure. The cost of education covers tuition and fees, on-campus room and board (or a housing and food allowance for off-campus students),and allowance for books and supplies, transportation, and miscellaneous expenses. Certain other items may be added at the discretion of the Financial Aid Administrator (FAA). Your COA can be affected by your enrollment status.
COUNSELOR: A person who guides and informs parents and students about their financial needs in order to meet the college cost. Financial aid counselors are available on a walk-in and appointment basis. A counselor conducts on-campus workshops during the year to help educate the student body about financial aid.
CSAP (College Scholarship Assistance Program): College Scholarship Assistance Program. Funding partially comes from the Federal State Student Incentive Grant (SSIG), therefore additional federal regulations must be considered. The student must have a high school diploma or its recognized equivalent; not owe a refund on a grant awarded under Pell, SEOG, or CSAP; not be in default on any type of federal student loan; and not have borrowed in excess of annual federal loan limits in the FFELP or Direct Loan programs. Restricted to in-state, undergraduate first-degree students with total EFC that are less than one half of their total COA. The maximum award amount is $5000 ($2500 maximum per semester) and the minimum award amount is $400 ($200 per semester), neither to exceed the student’s financial need. Students must be enrolled full time.
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DEFAULT: Failure to repay a student loan according to the terms agreed to when you signed a promissory note. If you default, your school, the organization that holds your loan, the state, and the federal government can all take action to recover the money, including notifying national credit bureaus of your default. Your wages and/or tax returns may be garnished, and you will no longer be eligible to receive federal financial aid.
DEFERMENT: An authorized period of time during which a borrower may postpone principal and interest payments. Deferments are available while borrowers are in school at least half time, enrolled in a graduate fellowship program or rehabilitation training program, and during periods of unemployment or economic hardship. Other deferments may be available depending on when and what you borrowed. Contact your lender for additional details.
DELAYED DISBURSEMENT: The release of loan funds to the school for delivery to the borrower. The payment will be made co-payable to the student and the school. If a promissory note is not completed or signed this can cause a delay in the disbursement
DEPENDENT STUDENT: For a child or other person to be considered your dependent, they must live with you and you must provide them with more than half of their support. Spouses do not count as dependents in the Federal Methodology. You and your spouse cannot both claim the same child as a dependent.
DIRECT DEPOSIT: Authorizes CWC to transfer the full amount of the financial aid awarded to students, after deductions for tuition, fees, and other debits due CWC, to the bank for deposit in my checking account. The bank is authorized to credit and/or debit the same such amount.
DIRECT LENDING: This program replaces the FFELP program and allows the federal government to act as your lender for Stafford and PLUS loans.
DISBURSEMENT: The release of loan funds to the school for delivery to the borrower. Disbursements for most loans are made in equal multiple installments.
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EARLY DECISION: A program with earlier deadlines and earlier notification dates than the regular admissions process. Students who apply to an early decision program commit to attending the school if admitted (thus, early decision can be applied to only one school). Unfortunately, this means the student has accepted the offer of admission before they find out about the financial aid package. You should only participate in an early decision program if the school is your first choice and you won't want to consider other schools.
ELECTRONIC FUNDS TRANSFER (EFT): Used by some schools and lenders to wire funds for Stafford and PLUS loans directly to participating schools without requiring an intermediate check for the student to endorse. The money is transferred electronically instead of using paper, and hence is available to the student sooner.
ELECTRONIC SIGNATURES: Done using PINs, which are given by the Department of Education to sign FAFSA’sand Master Promissory Notes online. Replaces the traditional signed page as the official, binding signature.
ELIGIBLE NON-CITIZEN: Someone who is not a US citizen but is nevertheless eligible for Federal student aid. Eligible non-citizens include US permanent residents who are holders of valid green cards, US nationals, holders of form I-94 who have been granted refugee or asylum status and certain other non-citizens. Non-citizens who hold a student visa or an exchange visitor visa are not eligible for Federal student aid.
EMANCIPATED: To release a child from the control of a parent or guardian. Declaring a child to be legally emancipated is not sufficient to release the parents or legal guardians from being responsible for providing for the child's education. If this were the case, then every parent would "divorce" their children before sending them to college. The criteria for a child to be found independent are much stricter. See Dependency Status.
ENROLLMENT STATUS: An indication of whether you are a full-time or part-time student. Generally you must be enrolled at least half-time (and in some cases full-time) to qualify for financial aid.
ENTRANCE/EXIT INTERVIEWS: Counseling sessions borrowers are required to complete an entrance interview before receiving their first loan disbursement and an exit interview before leaving school. These requirements are intended to inform borrowers about their rights and responsibilities with regard to borrowing student loans. This appears on Hokie SPA as “ENTINT”.
EXPECTED FAMILY CONTRIBUTION (EFC): The amount of money that the family is expected to be able to contribute to the student's education, as determined by the Federal Methodology need analysis formula approved by Congress. The EFC includes the parent contribution and the student contribution, and depends on the student's dependency status, family size, number of family members in school, taxable and nontaxable income and assets. The difference between the COA and the EFC is the student's financial need, and is used in determining the student's eligibility for need-based financial aid. If you have unusual financial circumstances (such as high medical expenses, loss of employment or death of a parent) that may affect your ability to pay for your education, tell your financial aid administrator (FAA). He or she can adjust the COA or EFC to compensate. See Professional Judgment.
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FEDERAL PROCESSOR: The organization that processes the information submitted on the Free Application for Federal Student Aid (FAFSA) and uses it to compute eligibility for federal student aid. There are two different federal processors serving specific geographic regions.?
FEDERAL WORK-STUDY (FWS): Program providing undergraduate and graduate students with part-time employment during the school year. The federal government pays a portion of the student's salary, making it cheaper for departments and businesses to hire the student. For this reason, work-study students often find it easier to get a part-time job. Eligibility for FWS is based on need. Money earned from a FWS job is not counted as income for the subsequent year's need analysis process. This appears on Hokie SPA as “FAFWS”. ?
FELLOWSHIP: A form of aid given to graduate students to help support their education. Some fellowships include a tuition waiver or a payment to the university in lieu of tuition. Most fellowships include a stipend to cover reasonable living expenses (e.g., just above the poverty line). Fellowships are a form of gift aid and do not have to be repaid.?
FINANCIAL AID: Money provided to the student and the family to help them pay for the student's education. Major forms of financial aid include gift aid (grants and scholarships) and self-help aid (loans and work).
FINANCIAL AID ADMINISTRATOR (FAA): A college or university employee who is involved in the administration of financial aid. Some schools call FAAs "Financial Aid Advisors" or "Financial Aid Counselors".?
FINANCIAL AID PACKAGE: The complete collection of grants, scholarships, loans and work-study employment from all sources (federal, state, institutional and private) offered to a student to enable them to attend the college or university. Note that unsubsidized Stafford loans and PLUS loans are not considered part of the financial aid package, since these financing options are available to the family to help them meet the EFC.?
FINANCIAL NEED: The difference between the Cost of Attendance and the Estimated Family Contribution. This amount is your total eligibility for aid from all sources, and is used in determining what your aid package will be.?
FIRST-TIME BORROWER: A first-year undergraduate student who has no unpaid loan balances outstanding on the date he or she signs a promissory note for an educational loan. First-time borrowers may be subjected to a delay in the disbursement of the loan funds. The first loan payment is disbursed 30 days after the first day of the enrollment period. If the student withdraws during the first 30 days of classes, the loan is canceled and does not need to be repaid. Borrowers with existing loan balances aren't subject to this delay.?
FORBEARANCE: During a forbearance the lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. The borrower must continue paying the interest charges during the forbearance period. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. You can't receive a forbearance if your loan is in default.?
FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA): Form used to apply for Pell Grants and all other need-based aid. As the name suggests, no fee is charged to file a FAFSA.
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GRACE PERIOD: A short time period after graduation during which the borrower is not required to begin repaying his or her student loans. The grace period may also kick in if the borrower leaves school for a reason other than graduation or drops below half-time enrollment. Depending on the type of loan, you will have a grace period of six months (Stafford Loans) or nine months (Perkins Loans) before you must start making payments on your student loans. The PLUS Loans do not have a grace period.
GRADE POINT AVERAGE (GPA): An average of a student's grades, converted to a 4.0 scale (4.0 is an A, 3.0 is a B, and 2.0 is a C). Some schools use a 5.0 scale for the GPA.
GRADUATE ASSISTANTSHIP: There are two types of graduate assistantships: teaching assistantships (TA) and research assistantships (RP). TAs and RPs receive a full or partial tuition waiver and a small living stipend. TAs are required to perform teaching duties. RAs are required to perform research duties, not necessarily related to the student's thesis research.
GRADUATE STUDENT: A student who is enrolled in a Masters or PhD program.
GRADUATED REPAYMENT: A schedule where the monthly payments are smaller at the start of the repayment period and gradually become larger.
GRANT: A type of financial aid based on financial need that the student does not have to repay.
GROSS INCOME: Income before taxes, deductions and allowances have been subtracted.
GENERAL SCHOLARSHIP: Application handled by the Office of Scholarships and Financial Aid that is due on the same date as the FAFSA and generally awarded during the months of September except for new freshman. The dollar amounts are $500-$1000. The application is available from the main page of our website.
GIFT AID: Any grant or scholarship aid that does not have to be repaid.
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HALF-TIME: Most financial aid programs require that the student be enrolled at least half-time to be eligible for aid. Some programs require the student to be enrolled full-time.
HEALTH PROFESSIONS STUDENT LOAN (HPSL): A low interest loan administered by the US Department of Health and Human Services (HHS). It is now known as the Primary Care Loan (PCL). This appears on Hokie SPA as “FAHPSL”.
HOLDS: Placed on a student’s account usually because of billing charges. This hold can keep a student from adding, dropping, or viewing their account. It will be there until the account is brought up to date.
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IN-STATE STUDENT: A student who has met the legal residency requirements for the state, and is eligible for reduced in-state student tuition at public colleges and universities in the state. For more information on residency, please see http://www.registrar.vt.edu/regi/residency.html.
INCOME: The amount of money received from employment (salary, wages, tips), profit from financial instruments (interest, dividends, capital gains), or other sources (welfare, disability, child support, Social Security and pensions).
INCOME CONTINGENT REPAYMENT: Under an income contingent repayment schedule, the size of the monthly payments depends on the income earned by the borrower. As the borrower's income increases, so do the payments. The income contingent repayment plan is not available for PLUS Loans.
INDEPENDENT: An independent student is at least 24 years old as of January 1 of the academic year, is married, is a graduate or professional student, has a legal dependent other than a spouse, is a veteran of the US Armed Forces, or is an orphan or ward of the court (or was a ward of the court until age 18). A parent refusing to provide support for their child's education is not sufficient for the child to be declared independent. (See also Dependent.)
INFORMATION RELEASE FORM: Signed statement by a student that lists all individuals, besides the student, who have permission to receive financial aid details on a student’s account.
INSTITUTIONAL QUALITY ASSURANCE PROGRAM (IQAP): see “Quality Assurance Program”
INSTITUTIONAL STUDENT INFORMATION REPORT (ISIR): The electronic version of SARs delivered to schools by EDExpress.
INTEREST: Amount charged to the borrower for the privilege of using the lender's money. Interest is usually calculated as a percentage of the principal balance of the loan. The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan. All federal loans issued since October, 1992 use variable interest rates that are pegged to the cost of US Treasury Bills.
INTERNAL REVENUE SERVICE (IRS): Federal agency responsible for enforcing US tax laws and collecting taxes.
INTERNSHIP: Part-time job during the academic year or the summer months in which a student receives supervised practical training in a their field. Internships are often very closely related to the student's academic and career goals, and may serve as a precursor to professional employment. Some internships provide very close supervision by a mentor in an apprenticeship-like relationship. Some internships provide the student with a stipend, some don't.
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LENDER: A financial institution (bank, savings and loan, or credit union) that provides the funds for students and
parents to borrow educational loans. For example, the federal government is the lender for Direct Loans
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MPN (MASTER PROMISSORY NOTE): The binding legal document that must be signed by the student borrower before loan funds are disbursed by the lender. The promissory note states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy and cancellations. The student should keep this document until the loan has been repaid.
MERIT BASED SCHOLARSHIPS: Scholarships that are merit-based depend on your academic, artistic or athletic merit or some other criteria, and do not depend on the existence of financial need. Merit-based awards use your grades, test scores, hobbies and special talents to determine your eligibility for scholarships. (See your department for more information.)
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NEEDS ANALYSIS: A process of reviewing a student's aid application to determine the amount of financial aid for which a student is eligible. Completing a needs analysis form is the required first step in applying for most types of financial aid.
NEW BORROWER: A borrower who has no outstanding (unpaid) loan balances on the date (s)he signs the promissory note for a specific educational loan. New borrowers may be subject to different regulations than borrowers who have existing loan balances.
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ORIGINATION FEE: A fee charged by the lender and deducted from loan proceeds before disbursement to partially offset administrative costs of the loan program; 3% for Stafford loans disbursed after 8/15/99 and 4% for Plus loans.
OSFA: Office of Scholarships and Financial Aid.
OUTSIDE SCHOLARSHIP: A scholarship that comes from sources other than the school and the federal or state government.
OVERAWARDS: A situation caused when more aid has been awarded than a student is eligible to receive under the federal awarding regulations. If this is an issue on your account, please contact your financial aid counselor for further details.
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PELL GRANT: A federal grant program based solely on a student’s EFC from their FAFSA. This award appears on Hokie SPA as “PELL”.
PERKINS LOAN: A federal loan program with a fixed 5% interest rate and 9 month grace period. CWC uses this loan for out-of-state students.
PIN NUMBER (Personal Identification Number): This number is used by the Department of Education to uniquely identify students for application and signature purposes. The PIN Registration website is http://www.pin.ed.gov.
PLUS (Parent Loan for Undergraduate Students) LOAN: A federal educational loan taken in a parent’s name to help fund a student’s education. This award appears on Hokie SPA as “FAPLUS”.
PREPAID TUITION PLAN: A college savings plan that is guaranteed to rise in value at the same rate as college tuition. For example, if a family purchases shares that are worth half a year's tuition at a state college, they will always be worth half a year's tuition, even 10 years later when tuition rates will have doubled.
PRINCIPAL: The amount of money borrowed or remaining unpaid on a loan. Interest is charged as a percentage of the principal. Insurance and origination fees will be deducted from this amount before disbursement.
PROFESSIONAL JUDGEMENT: The ability of an institution to make adjustments to a student’s FAFSA information or his/her Cost Of Attendance, with supporting documentation in the student’s file. If you believe this could be an option for you, please contact your financial aid counselor for further details.
PROMISSORY NOTE: The binding legal document that must be signed by the student borrower before loan funds are disbursed by the lender. The promissory note states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy and cancellations. The student should keep this document until the loan has been repaid.
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QUALITY ASSURANCE PROGRAM: A program that involves the verification of financial aid application information. Participants are randomly selected out of all aid recipients and required to submit various documentation. QAP provides a means to do a systematic, detailed analysis of procedures determining eligibility, management policies, general financial aid office policies and procedures, and collection of required supporting documents, as well as helping institute corrective action measures for the future.
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RAP - REASONABLE ACADEMIC PROGRESS: see Satisfactory Academic Progress
REFUND: Money returned to a student as a result of an overpayment through loans or other funds, or as the result of a decrease in charged costs resulting in an overpayment.
RELEASE OF INFORMATION FORM: see Information Release Form
REPAYMENT SCHEDULE: A statement from the lender disclosing the monthly payment, interest rate, total repayment obligation, payment due dates and the term of the loan.
RESOURCES: Any aid or benefits from outside of CWC that a student receives towards their educational costs.
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SATISFACTORY ACADEMIC PROGRESS: A school's written standard of satisfactory progress. By the end of their second academic year, students must maintain a "C" average (2.0 GPA) or have an academic standing consistent with their school's graduating requirements in order to receive federal student aid. Students may also not exceed 150% of the standard timeframe for their individual program of study and remain eligible for federal aid.
SECONDARY MARKET: An organization established to purchase education loans from lenders. This allows lenders to replenish capital to fund new loans. Selling loans is a common practice among lenders and does not affect the terms and conditions under which the loan was originally made.
SEOG (Supplementary Educational Opportunity Grant):Federal grant program for undergraduate students with exceptional need. SEOG grants are awarded by the school’s financial aid office, and provide up to $4,000 per year. To qualify, a student must also be a recipient of a Pell Grant.
SHORT-TERM LOAN: These student loans are interest-free loans ranging from $50 - $600 with a processing fee of $5.00 that is included in the loan. The loans are used primarily for emergency-type school needs. Short term loans are made to the students only while classes are in session and must be paid back within 60 days or the end of the semester. The loan processing time is within 5 working days. Students may borrow from this program once per academic term.
STUDENT AID REPORT (SAR): A form sent to the student after submitting the FAFSA to the federal processor. The SAR shows the information that was processed and indicates the amount of Pell Grant Eligibility. The SAR should be forwarded to the financial aid office at the school where you intend to enroll.
SUBSIDIZED LOAN: A need-based loan on which the interest is set by Congress.
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TITLE IV SCHOOL CODE: When you fill out the FAFSA you need to supply the Title IV Code for each school to which you are applying. This code is a six-character identifier that begins with one of the following letters: O, G, B, or E. The Financial Aid Information Page provides a searchable database of Title IV School Codes. The school code for VT is 003754.
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UNMET NEED: The amount of financial aid eligibility that is not provided by the OSFA, defined as COA-EFC= unmet need.
UNSUBSIDIZED LOAN: A non need-based loan on which interest is not paid by the federal government. Borrowers are responsible for interest on all unsubsidized loans from the date the loan is disbursed.
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VARIBLE INTEREST: In a variable interest loan, the interest rate changes periodically. For Stafford and PLUS loans, this occurs once a year on July 1st.
VERIFICATION: A process of review to determine the accuracy of the information on a student's financial aid application. Student applications are selected by the Federal Processor for review. CWC is not required to participate in the standard verification program due to our participation in the Institutional Quality Assurance Program.
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WORK STUDY: see “Federal Work Study”
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