Glossary | WFAA

Please select the first letter of the term you are interested in learning about.

A
Ability to Benefit
To be eligible to receive federal financial aid and/or other funds, a student must demonstrate an ability to benefit from college education. The most common proof of this is high school graduation (or the GED certificate). Certain authorized placement tests can also establish this, and there are other possible means of certifying ability to benefit.

Academic Level (or Class Level)
Grade level determined by the number of accumulated credits. The academic levels which are applicable to undergraduate students are

For exact credit cutoffs for each level, check with your financial aid office. Numbers may differ, e.g., between quarter and semester systems. Note that academic level may affect aid eligibility (e.g., maximum student loan amounts).

Accrued Interest
Interest that accrues on a loan(s) and is payable by the borrower or federal government.

AFDC (or ADC)
The former Aid to Families with Dependent Children, replaced by TANF.

AGI
Adjusted gross income. Income from the tax return that reflects various adjustments and deductions.

Amortization
The gradual reduction of a loan debt by periodic installment payments (usually monthly) of principal and interest.

Award Letter
Formal written notice from the Office of Student Financial Aid and Employment detailing a student's financial aid, its terms and conditions. (Also may be called financial aid award letter, offer letter, etc.) Students receiving this letter must read it carefully and follow all directions to secure their aid.

Award Year
The academic year for which financial aid is requested or awarded.

B
Budget
Estimated cost of attendance; usually includes tuition, fees, books, supplies, room, board, personal expenses, and transportation. Think of this as the amount of money, by expense category, the average student would be expected to spend – that is the amount of the budget that needs to be covered by a combination of the student’s resources and any financial aid.

Each financial aid office may have a variety of budgets, and will apply the budget that best fits the student. For example, students who are themselves independent parents would have a different set of costs from dependent students still living at home.

C
Campus-Based Financial Aid
The Federal Perkins Loan, the Federal Supplemental Educational Opportunity Grant, and the Federal Work-Study programs. These three programs are called "campus-based" because the funds are administered directly by the school's financial aid office, which awards these funds to students using federal guidelines.

Capitalization
A loan arrangement whereby you may add unpaid interest to the principal, rather than pay the interest when it is due. In other words, the interest will be added to the principal amount of your loan, and additional interest will be based upon the higher amount. This will increase the amount you have to repay. If you choose to pay the interest as it accumulates, you'll repay less in the long run.

Citizenship (U.S.), Permanent Resident, or Eligible Non-citizen
You must be one of the following to receive federal student aid:

If you're not in one of these categories, you must have an Arrival-Departure Record (I-94) from the US Immigration and Naturalization Service (INS) showing one of the following designations in order to be eligible:

If you have only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), you aren't eligible for federal student aid. If you're in the United States on an F1 or F2 student visa only, or on a J1 or J2 exchange visitor visa only, you can't get federal student aid. Also, persons with G series visas (pertaining to international organizations) are not eligible for federal student aid.

College Board
A national membership association that supports educational transitions through programs and services in assessment, guidance, admission, placement, financial aid, and educational reform.

College Code
For a college to receive a student's data, the student must list the college's federal school code or enter the college's complete name, address, city, and state. School codes can be found in the publication the "Federal School Code List." This is available through high schools, colleges, and public libraries, and is available each fall around the same time FAFSAs are distributed. The codes can also be obtained through the Internet at www.fafsa.ed.gov.

College Costs
Also referred to as the "cost of attendance," or COA. College costs refer to the total amount a student will pay to attend college, including tuition and fees, books and supplies, housing, meals, transportation, and personal expenses (laundry, health insurance, etc.)

Consolidation Loans
Loans that let you refinance all your loans by combining them into one. A consolidation loan usually has lower monthly payments and a longer term than your combined original loans.

Cost of Attendance
The student's cost of attendance includes not only tuition and fees, but also the student's living expenses while attending school. The cost of attendance is estimated in accordance with federal regulations. Often, for public schools the budgets may be determined by a state agency. The cost of attendance is compared to the student's expected family contribution to determine the student's need for financial aid.

CPS
Central Processing System. Processor for data for financial aid applications, calculation of EFC, and so forth.

Credit Check
An electronic process by which the Direct Loan Service verifies the credit (not employment) history of a PLUS applicant and or endorser.

Debt
An amount of money owed. Both students and financial aid administrators have an interest in keeping student debt as low as possible, and ensuring proper loan management and repayment.

Default
Failure to repay a loan according to the terms agreed to when the student signs a promissory note. Default also may result from failure to submit requests for deferment or cancellation on time. The consequences of default are severe. For more information, see Borrower Responsibilities and Rights.

Deferment (or Deferral)
A formal process allowed by some loans to defer (or postpone) payments. For example, if a student is still in school, loan payments may be deferred. The deferment does not necessarily happen automatically the student must ensure that the proper offices are aware of his or her eligibility for a loan deferment, otherwise the loan payments may be due. Most federal loan programs allow students to defer their loans while they are in school at least part time. For subsidized loans, the federal government pays the interest charges during the deferment period. But for unsubsidized loans, the borrower is responsible for the interest that accrues during the deferment. You can't get a deferment on a loan that is in default. If you don't qualify for a deferment, you may be able to get a forbearance

Delinquent
A loan is considered delinquent when a payment is not made on time, and late fees may be charged. If several payments are missed, the loan goes into default.

Dependency Status
A student's dependency status is determined by guidelines established by the federal government and indicates to what degree the student has access to the parents' financial resources. To be considered for independent status, a student must be at least 24 years old as of January 1, married, a graduate or professional student, a veteran of the U.S. Armed Forces, an orphan or ward of the court (or was a ward of the court until age 18), or have a legal dependent other than a spouse. All other students are considered dependent. (A parent refusing to provide support is NOT sufficient for a student to be declared independent.)

Dependents
Any child of the student who receives more than half support from the student (the child does not live with the student), including a natural or adopted child, or a child for whom the student is legal guardian. Also, any person who lives with the student and receives more than half support from the student during the award year.

Dependent Student
A student who does not qualify as an independent student. Such students are typically still dependent on parents or guardians.

Direct Loans
The Federal Direct Loan (FDSL) Program (The formal title is the William D. Ford Federal Direct Student Loan Program.) This is a new federal program in which the school becomes the lending agency and manages the funds directly, with the federal government providing the loan funds. The goal is to provide faster turnaround time and less bureaucracy than the "bank loan" program.
The terms of the Direct Loan program are the same as for the Stafford Loan Program.

Not all schools are participating in the Direct Loan program. For more information, call the Direct Loan Servicing Center at 1-800-848-0979.

Disbursement
The process by which financial aid funds are made available to students for use in meeting educational and related living expenses. Some aid is disbursed directly to students. Other aid may be applied directly to tuition or other costs.

Disclosure Statement
Lenders are required to provide the borrower with a disclosure statement before issuing a loan. The disclosure statement provides the borrower with information about the actual cost of the loan, including the interest rate, origination, insurance, and loan fees, and any other kinds of finance charges.

DRN
Data Release Number. A number the student can provide to a school to obtain his or her information, if the application was not originally sent to the school.

E
Early Decision
Early decision plans have earlier deadlines and earlier notification dates than the regular admissions process, and are geared for applicants who are sure of and likely to be accepted by the college they want to attend. A student who applies to a school through the early decision program commits to attending that school if admitted. The drawback -- students must accept the offer of admission before they find out about their financial aid package.

You can apply early decision to only one school. You should only participate in an early decision program if the school is your first choice, and you don't want to consider other schools.

ED
U.S. Department of Education

EDE
Electronic Data Exchange. EDE can be used, for example, by schools to enter data from a FAFSA to submit the data electronically. For assistance with EDConnect software call (800) 330-5947.

Educational Opportunity Program (EOP)
A specialized program of admissions and financial aid some colleges and universities. EOP is designed to provide economically disadvantaged students with the opportunity to attend college.

Educational Testing Service (ETS)
The world's largest private educational measurement institution and a leader in educational research. ETS develops and administers achievement, occupational, and admission tests -- such as the SAT for the College Board -- for clients in education, government, and business. ETS annually administers 9 million exams in the United States and 180 other countries.

EFC
See Expected Family Contribution

e-File
An IRS system that allows tax returns to be filed electronically.

EIC
Earned Income Credit. A federal tax credit that some low or zero income
students might have received.

Eligibility Requirements
The basic criteria established by the federal government which students must meet in order to qualify for federal financial aid. To be eligible for financial aid students must:

have financial need, except for some loan programs
have a high school diploma or a General Education Development (GED) Certificate, pass a test approved by the US Department of Education, or meet other standards established by the student's home state
be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program
be a US citizen or eligible non-citizen
have a valid Social Security number (note even though the social security may not be required for admissions or registration, it is still needed and required for financial aid)
make satisfactory academic progress
sign a statement of educational purpose and a certification statement on overpayment and default both found on the Free Application for Federal Student Aid
register with the Selective Service, if required

ESAR
Electronic Student Aid Report See Student Aid Report (SAR). See also SAR.

ETS
See Educational Testing Service

Exceptional Financial Need
An eligibility criterion in the SEOG programs. Exceptional financial need for SEOG is defined in statute as the lowest expected family contributions at an institution.

Expected Family Contribution (EFC)
A figure used to determine financial aid eligibility. The EFC is determined based upon a formula developed by the United States Congress. The EFC is printed on the front of the Student Aid Report.

The EFC formula is used to determine a student's eligibility for the following federal aid:

Federal Direct Loans
Federal Pell Grants
Federal Supplemental Educational Opportunity Grants
Federal Perkins Loans
Federal Work Study

The information a student provides in the Free Application for Federal Student Aid (FAFSA) is used to determine the student's EFC. A student sends the completed FAFSA application to the federal processor which calculates the student's EFC. The EFC is recorded on the Student Aid Report (SAR) which is sent to each student to verify the accuracy of the information they provided in the FAFSA.

Unusual circumstances such as loss of employment, high medical expenses, or the death of a parent may affect ability to pay for education and should be brought to the attention of the school's financial aid advisor. He or she may be able to adjust the COA or EFC to compensate.

F
FAFSA
See Free Application for Federal Student Aid (FAFSA)

FAO
Financial Aid Office.

FAT
See Financial Aid Transcript

Federal Direct Loan
A federal loan program whereby loan funds from the federal government are channeled through the school directly to the student. No banks or lending institutions are involved with the federal direct loan program. This streamlines the lending process.

Federal Methodology
The Federal Methodology is the need analysis formula used to determine the Expected Family Contribution (EFC). It takes into account taxable and nontaxable income, assets, family size, and the number of family members in college. Unlike many Institutional Methodologies, it does not consider the net value of a family's home.

Federal Student Aid Information Center
Students and financial aid administrators can call (800) 433-3243 to order FAFSAs. Financial aid administrators can go to http://ifap.ed.gov to access an on-line FAFSA ordering system.

Federal Supplemental Educational Opportunities Grant (FSEOG)
One of the campus-based programs. This is a grant to undergraduate students with exceptional financial need who have not completed their first baccalaureate degree and who are financially in need of this grant to help pay their educational expenses. Priority for FSEOG awards is given to Federal Pell Grant recipients.

Federal Work Study
Part-time employment for students to help pay for college expenses. Eligibility for FWS is based on financial need.

Federal Work Study Confirmation Form
Form generated by the Office of Student Financial Aid and Employment and made available to students eligible for federal work study (FWS). Students take this form to an interview for a FWS job. (Note may have different names at different offices.)

Fellowship
A grant or money for postgraduate study which may require the recipient to teach or conduct research. See also the Graduate Fellowship page.

FFELP
Federal Family Educational Loan Program (e.g. Stafford Loans, etc.).

Financial Aid
Money provided to a student and/or his or her family to help pay for the student's education. Financial aid can be in the form of gift aid (grants and scholarships) or self-help aid (loans and work-study).

Financial Aid Award Letter
A letter which contains an offer of financial or in-kind assistance to a student attending college. This award letter may contain an offer of financial aid in any one of the following types

Loan
Grant
Scholarship
Student Employment

Financial Aid Package
A financial aid award to a student usually comprised of a combination of forms of financial aid (loans, grants, scholarships, and employment). (Also may be called financial aid award letter, offer letter, etc.) Students receiving this letter must read it carefully and follow all directions to secure their aid.

Financial Aid Transcript (FAT)
A form used by colleges and universities to collect data about any financial aid awards that a student received at other educational institutions if the student is a midyear transfer student.

Note this is NOT an academic transcript. Students must have financial aid transcripts sent from previous post-secondary schools in addition to any academic transcripts.

While an actual paper form used to be used, the transmission is now done electronically.

Financial Need
The difference between the student's cost of attendance and the expected family contribution.

Forbearance
A temporary postponement or reduction of student loan payments, which may be granted if the lender determines that the borrower has a financial hardship. During a forbearance, a borrower may postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans.

Free Application for Federal Student Aid (FAFSA)
The application for all federal student aid. This form is completed by the student and lists household and financial information which is used to calculate financial aid eligibility. See also our FAFSA page. For advice on filing the FAFSA, see the Federal Student Financial Assistance website at http://studentaid.ed.gov/.

Free Application for Federal Student Aid – FAFSA Express
A way to submit FAFSA by phone modem for someone who cannot access the web. Note: only available for 2001-02 for students on military bases outside the U.S.A. The program requires Windows operating system and phone modem. Program can be downloaded from www.fafsa.ed.gov.

Free Application for Federal Student Aid – FAFSA on the Web
A way for students to file the FAFSA electronically. Students can also correct any of their previously submitted data, except for SSN and date of birth. Go to www.fafsa.ed.gov. Students may call (800) 801-0576 for assistance.

Free Application for Federal Student Aid – Renewal FAFSA
Most of the data from the application the year before is already filled in. This is a benefit and time savings for students and financial aid administrators. Students must still review all data for accuracy in case of changes. The renewal FAFSA can be submitted by the student via the Web, or, if the financial aid office allows, by EDE.

Full-time Student
At many institutions, for undergraduates full-time means 12 semester or quarter credits per term. However, the definition can vary, and at some institutions full-time for financial aid purposes may be higher than this. Students should read the definitions and Satisfactory Academic Progress standards for their school carefully.

FWS
See Federal Work Study

G
Gift Aid
Student financial aid that does not have to be repaid and that does not require the recipient to be employed (for example, grants and scholarships). Although gift aid is the most attractive form of financial aid, it is also the most limited. Don't count on paying for college entirely with grants and scholarships.

Grace Period
The period of time that begins when a loan recipient ceases to be at least half-time and ends when the repayment period begins. During the grace period interest does not accrue on the loan. In addition, no principal payments on the loan principal are required during the grace period.

Grant
Financial award for which there is no expectation of repayment or services to be performed. See also the grants page.

Grants and scholarships, also known as gift aid, do not have to be repaid. Grants are usually awarded on the basis of need alone, while scholarships may have certain requirements that must be met, such as maintaining excellent grade-point averages, participating in certain activities, or completing specific courses.

Gross Income
Income before taxes, deductions, and allowances have been subtracted.

Guaranty Agency
A state or private nonprofit agency that administers a student loan insurance program, for example, United Student Aid Funds (USAF). There are 41 guaranty agencies for educational loans in the United States. For the name, address, and telephone number of your state's guaranty agency, call the Federal Student Aid Information Center at 1-800-433-3243 (1-800-4-FED-AID).

Your state guaranty agency is the best source of information concerning FFELP loans in your state.

H
Half-time Student
At many institutions, for undergraduates half-time means 6 semester or quarter credits per term. However, the definition can vary, and at some institutions full-time for financial aid purposes may be higher than this. Students should read the definitions and Satisfactory Academic Progress standards for their school carefully.

Household Size
This affects the EFC of the student (or from the dependent student's parents). It is important to read the FAFSA directions carefully to make sure the household size is reported accurately.

I
I-9 Form
Employment form required by the Immigration and Naturalization Service. Students seeking a FWS job or temporary service job will be asked to complete an I-9 form prior to beginning employment. See also the I9 Form page.

Income
The amount of money received from employment (salary, wages, tips), profit from financial instruments (interest, dividends, capital gains), or other sources (child support, Social Security, pensions, disability).

Independent Student
For federal student aid purposes, students who meet at least one of the following criteria are considered independent

Born before January 1 of the applicable cutoff year (students should check with their FAO)
Married (as of the day student filed the FAFSA)
Veteran of the US Armed Forced
Ward of the court (until age 18) or both parent deceased
Legal dependents (other than spouse)
Additional criteria as specified by the college’s FAO

In-Kind Income, Not Reported on FAFSA
Income that due to its nature and federal rules in effect, may not need to be reported. Check current regulations. Examples: Food Stamp Program, WIC, etc.

Institutional Methodology
A formula, other than the federal methodology, used by a college or university to determine financial need for the allocation of said school's financial aid funds.

Interest
The amount a lender charges a borrower for the privilege of using the lender's money (in the form of a loan). Interest is usually calculated as a percentage of the principal balance of the loan. That rate may be fixed for the life of the loan or it may be variable, depending on the terms of the loan. As of Oct. 1, 1992, all new federal loans use variable interest rates based on the cost of US Treasury bills.

ISIR
Institutional Student Information Record. An output document from the CPS showing the information the student originally provided. It is sent electronically to the school.

J
No entries at this time.

K
No entries at this time.

L
Lender
The bank, credit union, or other financial institution that provides funds to a borrower (student of parent) for an educational loan.

Loan
An award made to a student with a formal agreement for repayment with interest.

M
Matriculated
Student admitted to a degree- or certificate-granting program.

Merit-based Aid
Financial aid that is awarded based on demonstrated academic excellence, professional promise, and personal merit. Many, but not all, scholarships are merit-based.

Methodologies
Need analysis formulas used to determine eligibility for student aid. There are three financial aid methodologies the Federal Methodology, the Institutional Methodologies, and the Simplified Methodology (or Simplified Need Test).

N
Need
The difference between cost of college attendance and a student's (and the student's parents') ability to pay that cost

Cost of attendance - Expected family contribution = Financial need

Need Analysis
The process that determines a student's financial need by analyzing the financial information provided by the student and his or her parents (or spouse, if applicable) on a financial aid form. The need analysis is the first step in applying for financial aid.

All students must file a Free Application for Federal Aid (FAFSA) to apply for need-based federal financial aid programs . Some schools, particularly private colleges, also require students to fill out other forms (see institutional methodology) for aid funded by that college. For state financial aid programs, the FAFSA may or may not be the only form a student needs to submit -- the best bet is to check with your state agency to find out if any other application form is needed.

Need analysis forms include the Free Application for Federal Aid (FAFSA) and the CSS/Financial Aid PROFILE at www.collegeboard.com.

Need-based Financial Aid
Financial aid that relies upon financial need. Financial need is considered to be total cost minus expected family contribution, as determined by Congress and implemented by states and colleges and universities. The student is required to complete the Free Application for Federal Student Aid (FAFSA) to assess need as the criterion for financial aid eligibility.

Need-blind
In need-blind admissions, a school decides whether to offer admission to a student without considering the student's financial situation.

Non-Need-based Financial Aid
Financial aid that does not require financial need as a criterion for financial aid eligibility. Examples of non-need based financial aid include the federal direct unsubsidized loan.

Number in College
This affects the EFC of the student (or from the dependent student's parents). It is important to read the FAFSA directions carefully to make sure the number in college is reported accurately.

(Federal) Nursing Loan
A low interest (5%) loan for students enrolled in a nursing program. Repayment begins nine (9) months after graduation, upon withdrawal, or if enrollment drops to less than half-time. These loans are for graduate and undergraduate students with exceptional need. For undergraduate students, priority is given to Federal Pell Grant recipients. Maximum amounts may vary depending on academic or class level or other factors.

O
Origination Fee
A fee charged for administration of a student loan. This fee is deducted from the loan prior to disbursement. The amount of the fee is set by regulations, and may be around 3%.

Out-of-State Student
A student who does not meet the residency requirements for the state. State public colleges and universities often charge out-of-state students a higher tuition rate.

P
Parent Contribution
The amount a student's parents are expected to pay toward college expenses from their income and assets. The amount is determined by a need analysis. Some of the factors considered in this calculation are income, the number of parents earning income, assets, family size, and the number of family members currently attending college.

The Parent Contribution and the Student Contribution together constitute the Expected Family Contribution.

(Federal) Pell Grant
An award to help undergraduate students pay for their college education. The maximum amount available for the 2000-01 academic year was $3,300. The amount changes when approved by the federal government. See also the Pell Grant page.

(Federal) Perkins Loan
A low interest (5%) loan to help students pay for their education after high school. Repayment begins nine (9) months after graduation, upon withdrawal, or if enrollment drops to less than half-time. These loans are for undergraduate students with exceptional need. For undergraduate students, priority may be given to Federal Pell Grant recipients. Maximum amounts vary based upon regulations.

PIN
Personal Identification Number. Students need a PIN and other identifying information to access their Renewal FAFSA on the web. Students without PINs can request one from the PIN website at http://pin.ed.gov or www.pin.ed.gov.

(Federal) PLUS Loan
Parent Loan for Undergraduate Students. Loan for parents of undergraduate students who want to borrow funds to help pay for the child's college education. This credit-based loan is made to the parent who must begin repaying it within 60 days of the first disbursement. See also the PLUS Loan page.

PLUS Loan Questionnaire
Form used to collect parental data required to generate a PLUS loan promissory note.

Postsecondary
" After high school". Refers to all programs for high school graduates.

Principal
In reference to loans, the principal is the amount of money borrowed or remaining unpaid on a loan. Interest is charged as a percentage of the principal.

Priority Dates
Time frames set by colleges that students should try to follow when filing the FAFSA. Students filing by the priority date of a particular school have a better chance of receiving the most possible financial aid from that school. If you miss the priority date, you can still receive financial aid, but the amount may be less or the aid may be in a different form (perhaps a higher loan ratio) than if you had filed earlier.

Professiional Judgment (PJ)
Professional Judgment. Financial aid administrators may make
adjustments to certain data that affect the EFC in certain circumstances.
Such changes are made on a case-by-case basis for individual students, and
must be documented. The purpose is to allow administrators to take unusual
circumstances into account.

Promissory Note
A legal document that the borrower signs to get a loan in which the borrower promises to repay the loan, with interest, in specified installments. The promissory note will also include any information about the grace period, deferment or cancellation provisions, and the student's rights and responsibilities with respect to the loan.

Q
Quality Assurance Program
Federal financial aid program that exempts schools from collecting certain documents from students to verify the accuracy of information reported on the FAFSA. The Quality Assurance Program allows participating schools to collect data from a smaller number of students. Data collected from the sample is used the following year to address and correct errors in the FAFSA application process.

R
Renewal Free Application for Federal Student Aid (FAFSA)
Renewal form mailed to students who filed the FAFSA during the previous academic year. The renewal FAFSA reports information from the previous year's FAFSA application allowing students to update this information for the upcoming academic year. The renewal FAFSA serves the same purpose as the FAFSA.

ROTC
Reserve Officers' Training Corps program. A scholarship program in which the military pays most of the cost of tuition, fees, and textbooks, and also provides a monthly allowance. In return, scholarship recipients are expected to participate in summer training while in college and fulfill a service commitment after college.

S
Sallie Mae
See Student Loan Marketing Association

SAP
See Satisfactory Academic Progress

SAR
See Student Aid Report (SAR)

SAT
See Scholastic Assessment Test

Satisfactory Academic Progress (SAP)
To be eligible for financial aid, a student must be making satisfactory academic progress. See also the Satisfactory Academic Progress page.

Qualitative measures (e.g., GPA), and quantitative measures (such as credits completed and length of time in school) are two key factors, but are not the only ones.

Scholarship
A form of financial assistance which does not require repayment or employment and is made to the student based upon criteria established by the donor(s). See also the Scholarship page.

Scholarship Search Service
A service that charges a fee to compare a student's profile against a database of scholarship programs. Beware of these services ... few students who use them ever actually win a scholarship.

Scholastic Assessment Test (SAT I)
The SAT is one of two national standardized college entrance examinations use in the United States. The other is the ACT.

Self-help Aid
Aid in the form of loans and student employment. In other words, unlike grants and scholarships, it's not free.

Simplified Methodology (Simplified Need Test)
Need analysis used by families whose total adjusted gross incomes are under $50,000 and who are eligible to file a 1040EZ, 1040A, or who do not file a tax return. (In the case of independent students, the same criteria is applied to the student and, if applicable, the student's spouse.) The Simplified Methodology is essentially the same as the Federal Methodology, except the Simplified Methodology does not count either parent or student assets in the Expected Family Contribution calculation.

SSN
Social Security Number. Required to apply for financial aid.

(Federal) Stafford Loan Program
Formerly called the Guaranteed Student Loan (GSL), this is a federally funded program that lets students borrow funds to meet educational expenses. Stafford loans come in two forms – subsidized and unsubsidized.

Subsidized Stafford loans are awarded based on need; unsubsidized loans do not require demonstrated need. The interest on the subsidized Stafford is paid by the federal government while the student is in school and during the six-month grace period. The interest on the unsubsidized Stafford is paid by the borrower.

The amounts that may be borrowed depend on the student's year in school. Undergraduates may borrow up to $23,000 ($2,625 the first year; $3,500 the second year; $5,500 the third, fourth, and fifth years), and graduate and professional students may borrow $8,500 per year in subsidized loans and up to $10,000 in unsubsidized loans, for an aggregate limit, including undergraduate borrowing, of $65,000 in subsidized Stafford loans, plus $13,000 in unsubsidized Stafford loans.

Federal Stafford Loans have a variable interest rate set at 3.1 percent above the federal 91-day Treasury-bill rate, with a cap of 8.25 percent. The rate is adjusted annually on July 1.

Funds are borrowed directly form banks or other lending institutions, or, for colleges participating in the Federal Direct Loan Program, from the federal government.

State Need Grant (SNG)
State Need Grant. A Washington state grant program. Students need to meet a
number of criteria, such as being a needy or disadvantaged student, be a
resident of the state, and so on for various criteria as outlined under WAC
250-20-011 "Student Eligibility."

Student Aid Report (SAR)
A federal output document generated by the FAFSA processor and mailed to the student. The SAR contains the family's financial information and other information as reported by the student on the FAFSA. The student's eligibility for financial aid is indicated by the EFC printed on the front of the SAR.

Student Loan Marketing Association (SLMA)
Also known as Sallie Mae, the SLMA is the nation's largest secondary market, holding approximately one third of all educational loans.

Subsidized Loan
The government pays the interest on the loan while the student is in school, during the six-month grace period, and during any deferment periods. Subsidized loans are awarded based on financial need and may not be used to finance the family contribution. The Perkins Loan and the Subsidized Stafford Loans are subsidized loans.

Supplemental Education Opportunity Grant (SEOG)
A federal grant program that helps undergraduates with exceptional financial need. SEOGs are awarded by the school's financial aid office and provide up to $4,000 a year. To qualify, a student must also be a recipient of a Pell Grant.

SWS
State Work-Study

T
TANF
Temporary Assistance for Needy Families. State-administered plans that
replaced the former Aid to Families with Dependent Children (AFDC or ADC).

TeleFile
An IRS system that allows a tax return to be filed over the telephone.

Title IV Code
Unique code used on the FAFSA to identify each school. Students should be certain they have entered the codes correctly, so their applications reach the intended colleges and universities.

Tuition
The amount of money colleges charge for instruction and use of facilities. Room, board, and fees are charged in addition to tuition, so the terms "tuition" and "college costs" are not synonymous.

U
Unsubsidized Loan
The government does not pay the interest, making the borrower responsible for paying it from the date the loan is disbursed -- even while the student is still in school. Unsubsidized loans are not based on financial need and may be used to finance the family contribution.

V
VA
U.S. Department of Veterans Affairs.

Verification Status Codes
Codes that a college uses to report the student's verification status (for Pell grant disbursal) (N, A, W, T, C, R, S) which all have special definitions for financial aid administration.

Verification Worksheet
Colleges are required to verify the data on a certain percentage of
applications. Colleges may use a verification worksheet to guide selected
students in providing the information and documentation that is needed.

W
Work Study
Another form of self-help aid. The Federal Work-Study Program is probably the most familiar example of this type of program, although many colleges may offer similar programs. Work-study aid is money a student must earn by working a part-time job, usually at the college or university the student is attending or at a nonprofit organization. Funds for most of the wages a work-study student earns come from the Federal Work-Study Program.

X
No entries at this time.

Y
No entries at this time.

Z
No entries at this time.