Financial aid terms
Financial Aid Process is a vast portion which includes various terms. Below are the frequently used Financial Aid Terms.
1. Academic competitiveness grant (acg)
ACG is a federal need-based grant offered to the Federal Pell Grant eligible students in their first and second year students.
2. Academic year
It is duration of at least 30 weeks of academic period and the student is expected to complete at least 24 semesters in clock hours.
3. Accrual date
The day interest charges on an educational loan begin to ensue.
4. Award letter
It is a official document offered by the Financial Aid Office listing of expected family contribution and cost of attendance.
5. Capitalization
It is a process of adding the unpaid interest to the principal balance of an educational loan.
6. Citizen/eligible non citizen
People who are having US social security number are considered as US citizens.
7. Consolidation
It is loan program, which offers various educational loan programs into a one new loan program.
8. Cost of attendance
This is the total amount of expenses such as tuition, fees, and standard allocation while attending school.
9. Default
If a student fails to pay the loan amount, by default school, or college can take all the actins to recover the loan amount.
10. Deferment
An official period of time to postpone the principal and interest payments of a educational loan
11. Disbursement
The delivery of financial Aid loans to the borrower.
12. Eligible program
Students will be having financial aid options and need to choose as per their eligibility.
13. Entrance/exit interviews
Interviews attended by the borrowers before their loan disbursement.
14. Expected family contribution (efc)
An amount that a student and parents can reasonably be expected to contribute toward college costs.
15. Free application for federal student aid (fafsa)
The Federal Aid Application.
16. Federal family education loan program (ffelp)
These are the Education loans provided by private lenders and guaranteed by the federal government.
17. Federal methodology (fm)
These are tools used by the federal government to determine a student's eligibility.
18. Financial aid advisor (faa)
An official person from the Financial Aid Office to review the student Financial Aid Applications.
19. Financial aid package
The total amount of Financial Aid a student receives.
20. Financial need
The difference between the Cost of Attendance and Expected Family Contribution.
21. Forbearance
22. Grant
One of the Financial Aid Awards, based on the financial need of the applicant.
23. Grace period
The duration between the day leaving and repaying period.
24. Guaranty agency
Its an agency which administers the Federal Stafford Loan and Federal plus Loan programs in your state.
25. Guaranty fee
An insurance fee deducted in the process of Financial Aid.
26. Institutional methodology
It is a method using in the process of eligibility determination.
27. Institutional student information report
It is the electronic version report delivered by the FAFSA processors.
28. Interest
29. Lender
30. Loan cap program
31. Loan replacement grant
32. Merit-based aid
If a Financial aid is awarded based on a student's academic, leadership or artistic merit is called as MERIT-BASED AID
33. Need-based aid
If a Financial aid is awarded based on a student's Financial situations is called as NEED-BASED AID
34. Needs analysis
Review process financial aid application to determine the Financial Aid Eligibility.
35. New borrower
36. National student loan data system (nslds)
It is a official information about loans and grants of financial aid under Title IV of the Higher Education Act (HEA) of 1965.
37. Origination fee
It is a financial aid process fee.
38. Parent contribution
A part of educational costs expected from the parents income and assets.
39. Pell grant
It is Federal Grant Award offered to the undergraduate students.
40. Perkins loan
These are assigned to the graduates and undergraduates, who are enrolled at least half-time.
41. Principal
42. Promissory note
43. Repayment schedule
44. Secondary market
45. Self help
46. Smart grant
A federal grant award offered to the third and fourth year undergraduate students based on the federal government their eligibility criteria
47. Supplemental educational opportunity grant (seog)
SEOG is planned for undergraduate students only.
48. Student contribution
49. Student aid report (sar)
50. Subsidized loan
51. Unsubsidized loan
52. Verification
53. Work award
It is equal to the program of Federal Work Study.