Financial Aid Vocabulary

Loan Entrance Counseling

A mandatory information session, which takes place before you receive your first federal student loan. Entrance counseling explains your responsibilities, obligations, and rights as a student borrower.

Cost of Attendance (COA)

The estimate of tuition and fees, cost of living expenses, books, supplies, transportation, loan fees, and miscellaneous expenses (i.e., a personal computer), to attend college.

Loan Servicer

The organization that administers and collects loan payments used to pay for school.

Pell Grant

A grant awarded based on financial need by the U.S. federal government to help students pay for higher education.

Master Promissory Note (MPN)

A legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your loan servicer.

Deferment

A temporary postponement of payment on a loan that is allowed under certain conditions.

Loan default

Failure to pay a loan according to the agreed upon terms. It can result in legal consequences and loss of eligibility for additional student aid.

Financial Aid

Money to help pay for college or career school. It can be in the form of grants, work-study, loans, and scholarships.

Expected Family Contribution (EFC)

It is a number used by your school to calculate the amount of federal student aid you are eligible to receive.

Verification

A process to confirm that the information on the FAFSA you submitted is an accurate snapshot of your finances.

Work Study

A program that allows students with financial need to work part time while continuing their studies.

FSA ID (Federal Student Aid Identification)

Consists of a username and password which gives you access to the U.S. Department of Education's online systems and can serve as your legal signature when completing electronic documents.

Award Letter

Details (source(s) and amount(s) by quarter) of the total amount of monetary assistance a school will offer you per academic year to attend their school..

Tuition

The amount of money you owe for receiving instruction, materials, and/or supplies, or for the rental or purchase of equipment, for a course of study at your institution.

WASFA (Washington Application for State Financial Aid)

The application for Washington state financial aid for students who are not eligible for federal aid because of immigration status, including undocumented students.

FAFSA (Free Application for Federal Student Aid)

The application required for students to be considered for federal student financial aid.

Financial Aid Portal

The central location of financial aid information as it relates to your Financial Aid application (FAFSA or WASFA) that may include a list of missing documents/requirements, special messaging, and any awards of grants, loans, and/or scholarships.