Student+Aid+Glossary

** ACCRUAL DATE ** The day interest charges on an educational loan begins to accrue.  ** CAPITALIZATION ** The process of adding unpaid interest to the principal balance of an educational loan, thereby increasing the total amount to be repaid.

** 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 ** The student's cost of attendance includes tuition, fees, and standard allocation designed to cover reasonable living expenses while attending school. The cost of attendance is determined by the school using guidelines established by federal regulations. (also known as Cost of Education or Student Budget)

** DEFAULT ** Failure to repay a student loan according to the terms agreed to when you signed a promissory note. If you default, UOG, 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.

** DISBURSEMENT ** The release of loan funds to the school for delivery to the borrower. Disbursements for most loans are made in equal multiple installments, and made co-payable to the borrower and the school.

** ELIGIBLE PROGRAM ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A program of organized instruction or study that leads to an academic, professional or vocational degree or certificate or other recognized educational credential.

<span style="font-family: Arial,Helvetica,sans-serif;">** ELIGIBLE NONCITIZEN ** <span style="font-family: Arial,Helvetica,sans-serif;">Generally, you are an eligible noncitizen if you are one of the following: <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: small;">You can receive federal student aid if you are an eligible noncitizen. You must enter your eight or nine digit Alien Registration Number (ARN) on the FAFSA. <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: small;">If your citizenship status has changed from an eligible noncitizen to a U.S. citizen, you should contact the Social Security Administration (SSA) to update your citizenship status. If you do not update your citizenship status with the SSA, it could delay processing your student financial aid. To contact the SSA call **1-800-772-1213** or visit the Social Security Administration's Web site at [|www.ssa.gov].
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: small;">U.S. permanent resident, with a Permanent Resident Card (formerly known as an Alien Registration Receipt Card or "Green Card”)
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: small;">Conditional permanent resident (I-551C)
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: small;">Other eligible noncitizen with an Arrival-Departure Record (I-94) from the Department of Homeland Security showing any one of the following designations: “Refugee,” “Asylum Granted,” “Indefinite Parole,” “Humanitarian Parole,” or “Cuban-Haitian Entrant”
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: small;">A citizen of the Republic of Palau (PW), the Republic of the Marshall Islands (MH), or the Federated States of Micronesia (FM).

<span style="font-family: Arial,Helvetica,sans-serif;">**ENTRANCE/EXIT INTERVIEWS** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Counseling sessions borrowers are required to attend before receiving their first loan disbursement and again before leaving school.

<span style="font-family: Arial,Helvetica,sans-serif;">** EXPECTED FAMILY CONTRIBUTION (EFC) ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">An amount that a student and parents can reasonably be expected to contribute toward college costs. For federal aid purposes this is computed according to federal guidelines. EFC is subtracted from total costs of attendance to arrive at an estimate of a student's demonstrated need.

<span style="font-family: Arial,Helvetica,sans-serif;">** FEDERAL DIRECT LOAN PROGRAM ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Federally sponsored loan programs, which include the Stafford Loan, Graduate PLUS Loan, and the Parent PLUS Loan (for parents of undergraduate students).

<span style="font-family: Arial,Helvetica,sans-serif;">** FEDERAL METHODOLOGY (FM) ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">The formulas used to determine a student's eligibility for federal Title IV funds. The formulas take into account income, some assets, expenses, family size and other factors. FM is written by Congress rather than a peer community assessment and is not updated regularly.

<span style="font-family: Arial,Helvetica,sans-serif;">** FINANCIAL AID ADVISOR (FAA) ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A representative of the Financial Aid Office that reviews a student's application and awards aid, and helps the student in all aspects of the financial aid process.

<span style="font-family: Arial,Helvetica,sans-serif;">** FINANCIAL AID PACKAGE ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">The total financial aid a student receives. Federal and non-federal aid such as grants, loans, work-study, and scholarships are combined in a "package" to help meet the student's need.

<span style="font-family: Arial,Helvetica,sans-serif;">** FINANCIAL NEED ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">The difference between what it costs to attend a particular college and the amount it has been determined that a student and her/his family can afford to pay toward those expenses. The term "demonstrated financial need" is typically used to describe an assessment based on Institutional Methodology for undergraduate need-based, institutional funding. The amount that an applicant can be expected to contribute is measured according to standardized formulas. These standardized formulas include the federal and institutional methodologies, and the 568 Consensus Approach.

<span style="font-family: Arial,Helvetica,sans-serif;">** FORBEARANCE ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">An authorized period of time during which the lender agrees to temporarily postpone a borrower's principal repayment obligation. Interest continues to accrue and usually must be paid during the forbearance period. Forbearance may be granted at the lender's discretion when a borrower is willing to repay their loan but is unable to do so.

<span style="font-family: Arial,Helvetica,sans-serif;">** GRANT ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A type of financial aid award based on need or merit that is not repaid by the student.

<span style="font-family: Arial,Helvetica,sans-serif;">** GRACE PERIOD ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">The period between the time a borrower leaves school or drops below half-time and the time they are obligated to begin repaying their loans - usually six or nine months, depending on the type of loan.

<span style="font-family: Arial,Helvetica,sans-serif;">** INDEPENDENT STUDENT ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">An independent student is one of the following: at least 24 years old, married, a graduate or professional student, a veteran, a member of the armed forces, an orphan, a ward of the court, or someone with legal dependents other than a spouse.

<span style="font-family: Arial,Helvetica,sans-serif;">** INSTITUTIONAL METHODOLOGY ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A nationally accepted standard used by many colleges, universities, graduate and professional schools, and private scholarship programs for assessing a family's financial eligibility to receive funding from the school to help meet the Cost of Attendance. While similar to the federal methodology, IM includes a comprehensive review of assets, income, family size, home equity, and other factors. Institutional Methodology also permits more generous treatment of medical/dental expenses, elementary and secondary school tuition payments, and child support payments in determining a family's total available income to pay for Cost of Attendance.

<span style="font-family: Arial,Helvetica,sans-serif;">** INSTITUTIONAL STUDENT INFORMATION REPORT ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">The Institutional Student Information Report (ISIR) is the name for the electronic version of SAR's delivered to schools by the FAFSA processors.

<span style="font-family: Arial,Helvetica,sans-serif;">** INTEREST ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A fee charged for the use of borrowed money. Interest is calculated as a percentage of the principal loan amount. The rate may be constant throughout the life of the loan (fixed rate) or it may change at specified times (variable rate).

<span style="font-family: Arial,Helvetica,sans-serif;">** IRS TAX RETURN TRANSCRIPT ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A fee charged for the use of borrowed money. A detailed document obtained from the Internal Revenue Service which lists most line items from your tax return (Form 1040, 1040A or 1040EZ) as it was originally filed, including any accompanying forms and schedules. An IRS Tax Return Transcript can be ordered online at [|www.irs.gov].

<span style="font-family: Arial,Helvetica,sans-serif;">** LENDER ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A financial institution (bank, savings and loan, or credit union) that provides the funds for students and parents to borrow educational loans. Some schools are also lenders.

<span style="font-family: Arial,Helvetica,sans-serif;">** LOAN CAP PROGRAM ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Caps need-based debt at $15,000 for families with incomes between $50,000 and $100,000 per year. Once the family contribution is determined and the $15,000 loan cap is borrowed, the balance of costs will be subsidized through need-based grants. Need-based loans considered in this program are the Federal Subsidized Stafford Loan, Federal Perkins Loan, and Federal Nursing Student Loan. This program is available to dependent, full-time undergraduate students entering Emory University fall 2007 semester or later. This program assumes on-time progression toward degree completion, covering eight semesters of study.

<span style="font-family: Arial,Helvetica,sans-serif;">** LOAN REPLACEMENT GRANT ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Grant funds replace need-based loans in the initial award package for eligible dependent undergraduate students. The eligible grant amount represents the student's self-help portion normally given in the form of a loan.

<span style="font-family: Arial,Helvetica,sans-serif;">** MASTER PROMISSORY NOTE ** <span style="font-family: Arial,Helvetica,sans-serif;">The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years). There are two types of MPNs in the Direct Loan Program; one for student loans and one for parent PLUS loans.

<span style="font-family: Arial,Helvetica,sans-serif;">** MERIT-BASED AID ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Financial aid that is awarded based on a student's academic, leadership or artistic merit, or some other criteria, and does not depend on financial need. Merit-based awards may look at a student's grades, test scores, special talents, or extracurricular activities to determine eligibility. To apply for University merit-based aid, please contact your admissions office.

<span style="font-family: Arial,Helvetica,sans-serif;">** NEED-BASED AID ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Financial aid that is awarded based on a student's financial circumstance. Need-based aid can be awarded in the form of grants, loans, or work-study. Students who believe their families will need help in supporting their educational costs are encouraged to apply for need-based aid at the time they apply for admission to the University.

<span style="font-family: Arial,Helvetica,sans-serif;">** NEEDS ANALYSIS ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A process of reviewing a student's aid application to determine the amount of financial aid a student is eligible for. Completing a needs analysis form is the required first step in applying for most types of financial aid.

<span style="font-family: Arial,Helvetica,sans-serif;">** NEW BORROWER ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">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.

<span style="font-family: Arial,Helvetica,sans-serif;">** NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS) ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">The National Student Loan Data System (NSLDS) is the national database of information about loans and grants awarded to students under Title IV of the Higher Education Act (HEA) of 1965. NSLDS provides a centralized, integrated view of Title IV loans and grants during their complete life cycle, from aid approval through disbursement, repayment, delinquency and closure.

<span style="font-family: Arial,Helvetica,sans-serif;">** PARENT CONTRIBUTION ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A portion of the expected family contribution that is derived from the parents' family income, assets, state and federal taxes, an allowance for family living expenses, and the costs of other family members in college.

<span style="font-family: Arial,Helvetica,sans-serif;">** PELL GRANT ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">For undergraduate students, first baccalaureate degree only. Eligibility is based on federal methodology. The amount of the award ranges from $486 to $5,550 subject to Congressional appropriations, and will be reduced for students who enroll less than full time.

<span style="font-family: Arial,Helvetica,sans-serif;">** PERKINS LOAN ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Perkins Loans are for graduates and undergraduates who are enrolled at least half-time. Awards are based on financial need as demonstrated by the information provided on your aid application and on the availability of funds. Preference is given to students with exceptional need and meet filing deadlines.

<span style="font-family: Arial,Helvetica,sans-serif;">** PRINCIPAL ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">The amount borrowed. Interest is charged on this amount, and guaranty and origination fees will be deducted prior to disbursement.

<span style="font-family: Arial,Helvetica,sans-serif;">** PROMISSORY NOTE ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">The legal document borrowers sign when they get an education loan. It lists conditions under which the money is borrowed and the terms under which borrowers agree to repay the loan with interest. Borrowers should keep the borrower copy of their promissory notes until the loans are fully repaid.

<span style="font-family: Arial,Helvetica,sans-serif;">**REHABILITATION** <span style="font-family: Arial,Helvetica,sans-serif;">A program that enables defaulted borrowers of federal Perkins loans to bring their accounts current, to remove previously reported derogatory credit information, and to reinstate the remaining balance of privileges and benefits of the loan. Borrowers must request rehabilitation from their lender in writing. Additional information and/or rehabilitation agreements can be obtained from the Loan Office.

<span style="font-family: Arial,Helvetica,sans-serif;">**REPAYMENT SCHEDULE** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Discloses the borrower's monthly payment, interest rate, total repayment obligation, due dates and length of time for repaying the loan.

<span style="font-family: Arial,Helvetica,sans-serif;">** SELF HELP ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Financial aid self help awards are available via programs that require the student to either repay the assistance or work for the assistance. Loans and Work-Study are examples of self help awards.

<span style="font-family: Arial,Helvetica,sans-serif;">** SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (SEOG) ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">Supplemental Educational Opportunity Grant for undergraduate students, first baccalaureate degree only. Federal grant awarded based on a federal formula using data provided in your aid application. Priority is given to students who are eligible for Federal Pell Grants.

<span style="font-family: Arial,Helvetica,sans-serif;">** STUDENT CONTRIBUTION ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">In addition to the amount parents are asked to contribute, students are also expected to help meet a portion of their own educational costs each year. A student's minimum contribution may come from prior year earnings, summer employment, savings, and educational benefits.

<span style="font-family: Arial,Helvetica,sans-serif;">** STUDENT AID REPORT (SAR) ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A form sent to the student after submitting the FAFSA to the federal processor. The SAR shows the information that was processed and indicates Pell Grant Eligibility.

<span style="font-family: Arial,Helvetica,sans-serif;">** SUBSIDIZED LOAN ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">The government pays the interest on the loan while the student is in school, during the six-month grace period after the student leaves school, 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. Beginning with the 2012-13 award year, the Subsidized Stafford loan is for undergraduate students only.

<span style="font-family: Arial,Helvetica,sans-serif;">** UNSUBSIDIZED LOAN ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">With this loan, the government does not pay the interest while the student is enrolled. The student has the option to either pay the accruing interest monthly or allow the interest to capitalize (to be added to the principal). Either way, required payments do not begin until 6 months after graduation or 6 months after the student drops below half-time enrollment. Unsubsidized Stafford Loans are not based on financial need and therefore may be used to finance the family contribution.

<span style="font-family: Arial,Helvetica,sans-serif;">** VERIFICATION ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A process of review to determine the accuracy of the information on a student's financial aid application. Students are selected for verification by the federal Central Processing System (CPS) when their FAFSA applications are processed.

<span style="font-family: Arial,Helvetica,sans-serif;">** WORK STUDY ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13.3333px;">A program that allows students to work for income at school