Financial Aid

Default

A failure to repay a student loan according to the terms of the loan agreed to in the promissory note.If you default on a federal student loan, you lose eligibility to receive federal student aid and you may experience serious legal consequences.

Pell Grant

A federal grant for low-income undergraduate students who have not yet received a Bachelor's degree, does not need to be repaid, maximum grant last year was $6095. Ms Putnam Genz's favorite grant!!

TEACH grant

A federal grant that provides up to $4,000 per year to students who agree to teach for four years at an elementary or secondary school that serves students from low-income families and to meet other requirements. If the service obligation is not met, the grant is converted to a Direct Unsubsidized Loan

Master Promissory Note

A legal document that you must sign when you get a federal student loan. It lists the terms and conditions under which you agree to repay the loan and explains your rights and responsibilities as a borrower.

Verification

A process used to make sure that the information on FAFSA is accurate. It does not mean you did anything wrong, you did it right! ⅓ students will be verified (if EFC is under $13,500 more likely to be verified) A college cannot officially award financial aid until verification is complete

Deferment

A temporary stay of payment on a loan that is allowed under certain conditions, some federal student loans that are deferred will continue to accrue interest.Any unpaid interest that accrued during the deferment period may be added to the principal balance of the loan(s).

Grants

A type of financial aid, often based on financial need, that does not need to be repaid. Given by government, schools, or organizations and awarded as part of your financial aid package.

Room and Board

An allowance for the cost of housing and food while attending college

Iowa Tuition Grant

Awarded to Iowa residents enrolled at one of Iowa's eligible private colleges and universities, given to applicants with the greatest financial need. The maximum amount is set at the average Regent tuition and fee rate. Recipients can receive grants for up to four years of full-time, undergraduate study.

Financial Need

COA - EFC The cost after your family contribution that will be covered by financial aid and out of pocket

Net Price

COA - Gift Aid cost you will actually pay for college will be paid with loans and out of pocket

COA

Cost of AttendanceThe amount it will cost you to attend your college for one school year. It will include tuition, books, supplies, fees, transportation, room and board, personal expenses, etc.

Entrance/Exit Counseling

Entrance:Mandatory info session that takes place before you receive your first federal student loan that explains your responsibilities and rights as a student borrower. Exit: Mandatory information session that takes place before you graduate or drop below half-time enrollment that explains your loan repayment responsibilities and when repayment begins.

EFC

Expected Family Contribution the amount your family can contribute to your cost of going to college based on the info you gave on the FAFSA about family income, assets, family size, and number of students in college.EFC does not change college to collegeExpected Family Contribution

FSEOG

Federal Supplemental Educational Opportunity Grant, given to students with the highest financial need.

Award Letter

Financial Aid PackageLists the types of financial aid the college will offer

Scholarships

Financial aid you can apply for from various sources like community organizations, colleges, employers, etc. Based on merit (grades or accomplishments), financial need, cultural, religious, or other affiliation.Do not need to be paid back, but may have rules to continue receiving them. Money awarded to students based on academic or other achievements to help pay for education expenses.

Kibbie Grant

For Iowa residents enrolled in specified career/technical education programs at Iowa community colleges. The maximum Kibbie Grant award is one-half of the average Iowa community college tuition and mandatory fees per year for up to two years of education.

FAFSA

Free Application for Federal Student Aid

Gift Aid

Given (scholarships and grants) with no expectation of repayment or re-earning

SAR

Student Aid Report; summary of the information you put on the FAFSA. SAR will contain your EFC

Tuition

The amount of money charged to students for instructional services. Tuition may be charged per term, per course, or per credit. This is only one part of the cost to attend college.

Enrollment Status

The number of credit-hours you're taking; ex: full-time or part-time.Some loans or aid may be available only to students with a certain enrollment status, usually half-time or more.

Disbursement

When financial aid funds are used to pay charges such as tuition, books, or housing on your college bill

Grace Period

a period of time after you leave college (graduate, leave school, or drop below half-time enrollment) when you are not required to make payments

Need-based aid

awarded if your family cannot cover the cost of your college, you need this aid in order to attend the college

Merit-based aid

awarded of basis of personal achievement or characteristics without taking financial need into consideration (ex: scholarships)

Direct Costs

billed by the college, cannot changeEx: tuition, fees, room, board

Fees

charged for anything from damaging your dorm walls to printing, to returning books late. Student Fees can also cover student services offered (career, counseling, wellness etc)

Indirect Costs

estimated costs, you have some controlEx: transportation, books, personal expenses

Work-Study

flexible hours for part time work, usually on campus There will be a maximum amount of money you can earn each semester The money is paid directly to you, not applied to your college bill, so you choose how you spend this money. The money is not considered income so it will not affect your FAFSA for the following year.

Perkins Loan

loan from the college for those with exceptional financial need, repayment starts 9 months after leaving college

Parent PLUS loan

loan from the gov in the parents' name, requires a credit check, the maximum that can be borrowed is the whatever is left for the cost of college after financial aid is applied

Loans

money that must be repaid with interest, can be through government, state, college, or private lenders (try not to take too many of these) Students can only take $5500 in loans through the government their freshman year

Self-Help Aid

money that you have to do something for... earned (through work study) or borrowed (loans)

Private Loan

non-federal loan with a higher interest rate from bank or credit union, credit check required, may have to make repayments while you are in school, take these as last resort

Unsubsidized Stafford Loan

not based on financial need, you pay the interest (grows while you are in school) repayment starts 6 months after you leave college

Subsidized Stafford Loan

the "good" kind, based on financial need, gov pays the interest (while you are in school), repayment starts 6 months after you leave college, max you can get is $3500 freshman year

Front Loading

the college offers a generous financial aid package to first-year students and then reduces it over the following years

Loan Forgiveness

won't have to repay the loan if you are working in a qualifying area for a specific length of time (ex: teachers, nurses, public servants)