Financial aid terms

Financial Aid Process is a vast portion which includes various terms. Below are the frequently used Financial Aid Terms.

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.

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.

Accrual date

The day interest charges on an educational loan begin to ensue.

Award letter

It is a official document offered by the Financial Aid Office listing of expected family contribution and cost of attendance.

Capitalization

It is a process of adding the unpaid interest to the principal balance of an educational loan.

Citizen/eligible non citizen

People who are having US social security number are considered as US citizens.

Consolidation

It is loan program, which offers various educational loan programs into a one new loan program.

Cost of attendance

This is the total amount of expenses such as tuition, fees, and standard allocation while attending school.

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.

Deferment

An official period of time to postpone the principal and interest payments of a educational loan

Disbursement

The delivery of financial Aid loans to the borrower.

Eligible program

Students will be having financial aid options and need to choose as per their eligibility.

Entrance/exit interviews

Interviews attended by the borrowers before their loan disbursement.

Expected family contribution (efc)

An amount that a student and parents can reasonably be expected to contribute toward college costs.

Free application for federal student aid (fafsa)

The Federal Aid Application.

Federal family education loan program (ffelp)

These are the Education loans provided by private lenders and guaranteed by the federal government.

Federal methodology (fm)

These are tools used by the federal government to determine a student's eligibility.

Financial aid advisor (faa)

An official person from the Financial Aid Office to review the student Financial Aid Applications.

Financial aid package

The total amount of Financial Aid a student receives.

Financial need

The difference between the Cost of Attendance and Expected Family Contribution.

Forbearance

Grant

One of the Financial Aid Awards, based on the financial need of the applicant.

Grace period

The duration between the day leaving and repaying period.

Guaranty agency

It's an agency which administers the Federal Stafford Loan and Federal plus Loan programs in your state.

Guaranty fee

Institutional methodology

It is a method using in the process of eligibility determination.

Institutional student information report

It is the electronic version report delivered by the FAFSA processors.

Interest

Lender

Loan cap program

Loan replacement grant

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

Need-based aid

If a Financial aid is awarded based on a student's Financial situations is called as NEED-BASED AID

Needs analysis

Review process financial aid application to determine the Financial Aid Eligibility.

New borrower

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.

Origination fee

It is a financial aid process fee.

Parent contribution

A part of educational costs expected from the parents income and assets.

Pell grant

It is Federal Grant Award offered to the undergraduate students.

Perkins loan

These are assigned to the graduates and undergraduates, who are enrolled at least half-time.

Principal

Promissory note

Repayment schedule

Secondary market

Self help

Smart grant

A federal grant award offered to the third and fourth year undergraduate students based on the federal government their eligibility criteria

Supplemental educational opportunity grant (seog)

SEOG is planned for undergraduate students only.

Student contribution

Student aid report (sar)

Subsidized loan

Unsubsidized loan

Verification

Work award

It is equal to the program of Federal Work Study.

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