Student Financial Aid Terms & Definitions
Academic Year: Time that makes up year that school is in session; usually a Fall & Spring semester.
ACT (American College Testing Service): Exam for entering colleges in the Midwest. Also accepted by schools in the West & South.
Assets: Parts that make up one’s financial worth; includes home equity, stocks, bonds, and savings.
Central Processor: The federal government’s computer system that analyzes the information on your FAFSA, calculates how much you can pay toward college, and sends out the Student Aid Report; also called federal student aid processor.
Citizen/Eligible Noncitizen: A U.S. citizen, U.S. national (includes natives of American Samoa and Swain’s Island), or a U.S. permanent resident who has an Alien Registration Receipt Card. Other eligible noncitizens are those who have an Arrival-Departure Record from the U.S. Immigration and Naturalization Service showing one of the accepted designations, or a Temporary Resident Card. Citizens of the Federated States of Micronesia, the Marshall Islands and Palau are eligible for Pell Grants, Federal Supplemental Educational Opportunity Grants or Federal Work-Study only.
Cost of Attendance (COA): Student budget or total costs of college.
Default: Failure to make loan payments or otherwise honor a loan’s terms; reported to credit bureaus and can influence future credit.
Dependent Student: Any student under 24 years old who doesn’t qualify as an independent student; student whose parental income and asset information is used in calculating his/her expected family contribution.
Direct Loan Program: Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution
Expected Family Contribution (EFC): portion of a family’s financial resources that should be available to help pay educational costs.
FAFSA: Free Application for Federal Student Aid.
Federal Family Education Loan Program (FFELP): Consists of the Federal Stafford, PLUS and Consolidation loans; these loans are made by commercial lenders—this may be changing; all Federal loans may soon be coming from Federal Goverment.
Financial Aid Package: An offer of financial aid, usually a combination of grant, loan and/or work aid.
Financial Aid Transcript (FAT): A record of federal student aid received.
Financial Need: the difference between the expected family contribution and school costs; the amount of aid you’re eligible to receive; also known as financial aid eligibility.
Full-time Student: Enrolled in a minimum of 12 hours each semester.
GED: General Educational Development score used to measure academic achievement to the high school graduate level.
GPA: Grade point average.
Guarantee: A promise to pay a debt if the borrower fails; the government guarantees student loans made by banks.
Guaranty Agency: The organization that administers the FFELP. In Wisconsin the guarantor is Great Lakes Higher Education.
Home Equity: Current home value minus the amount still owed.
Independent College: A nonprofit, private college, not run by a government organization.
Independent Student: Student who supports him or herself financially.
Interest: The fee charged to borrowers by lenders for using loan money.
Need Based: Student must demonstrate a financial need.
Nontraditional Student: A student who experienced an interruption in education between high school and college years; older students, or other circumstances.
Part-time Student: Enrolled less than 12 hours each semester.
PSAT (Preliminary Scholastic Aptitude Test): Taken by students who are sophomores in high school and plan to take the SAT.
Promissory Note: A legally binding contract between a borrower and lender listing all terms and conditions of a student loan.
SAT (Scholastic Aptitude Test): College entry exam taken by most students in the East or students who intend to attend colleges in the East. Schools in the West and South may accept the SAT.
Satisfactory Academic Progress: The progress you must maintain toward a degree or certificate to receive financial aid; your school’s written standard of satisfactory progress.
Scholarship: A grant awarded based on grades or other achievement; not always based on financial need.
Selective Service Registration: If required by law, a student must register, or arrange to register, with the Selective Service to receive federal student aid; applies to males born on or after January 1, 1960, who are at least 18 years old, citizens/eligible noncitizens, and not currently on active duty in the Armed Forces. (Citizens of the Federate States of Micronesia, the Marshall Islands, or Palau are exempt from registering.)
Service to Receive Federal Student Aid: Applies to males born on or after January 1, 1960, who are at least 18 years old, citizens/eligible noncitizens, and not currently on active duty in the Armed Forces.
Student Aid Report (SAR): The report summarizing the information submitted on your FAFSA.
Student Budget: the total cost of attending a college; cost of attendance.
Vocational School: an institution offering a course of study beyond high school to teach specific job skills; also called a trade school.
Just like there are dozens of definitions and words to understand, there are hundreds of different kinds of scholarships. The Free Scholarship & Grant Guide can help you find free money for school. Simply request information from a Top-Colleges school. There is no cost or obligation!
