Financial Aid

Interest Rate

The percentage at which interest is calculated on your loan(s).

Principle

The total sum of money borrowed plus any interest that has been capitalized

tuition

a sum of money charged for teaching or instruction by a school, college, or university.

Direct Plus Loan (parent loan)

A federal student loan, made through the William D. Ford Federal Direct Loan Program, that eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans are types of Direct Loans.

scholarship

A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements

master's degree (MA)

A graduate degree typically requiring two or three years of study beyond a bachelor's degree; an academic degree higher than a bachelor's but lower than a doctorate.

Federal Subsidized loan

A loan based on financial need for which the federal government generally pays the interest that accrues while the borrower is in an in-school, grace, or deferment status, and during certain periods of repayment under certain income-driven repayment plans.

interest

A loan expense charged for the use of borrowed money. Interest is paid by a borrower to a lender. The expense is calculated as a percentage of the unpaid principal amount of the loan.

Federal Unsubsidized Loan

A loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan.

room and board

The cost of having a place to sleep (room) and food to eat (board) while at school.

Work Study

A federal program that provides part time employment opportunities for students with financial need, allowing them to earn money to help pay educational expenses.

FAFSA (Free Application for Federal Student Aid)

Financial aid from the federal government to help you pay for education expenses at an eligible college or career school. Grants, loans and work-study are types of federal student aid. You must complete the FAFSA form to apply for this aid.

college

post-secondary institution offering a collection of degrees in one specific area; also an undergraduate division or school in a university.

Pell Grant

Grant provided by the Federal Government to help pay for college expenses. Based on parental income

Federal Student loan

A loan funded by the federal government to help pay for your education. A federal student loan is borrowed money you must repay with interest.

Private Student loan

A non federal loan made by a lender such as a bank, credit union, state agency, or school.

Student Aid Report (SAR)

A summary of the information you submitted on your Free Application for Federal Student Aid (FAFSA) form.

Associate's Degree (A.A., A.S.)

A two-year degree that generally prepares a student for further study at a four-year institution or may provide sufficient training for a specific career.

need-based awards

A type of financial aid available for students and families who meet certain economic requirements.

bachelor's degree (BA or BS)

An academic degree which usually takes four years to earn and is awarded by a college or university.

loan

An amount of money given to the borrower for a set period of time. After the set time has passed, the money must be paid back plus the lending fee, called interest. Payments are normally made over a series of months.

Net price

An estimate of the actual cost that a student and his family need to pay in a given year to cover education expenses for the student to attend a particular school. Net price is determined by taking the institution's cost of attendance and subtracting any grants and scholarships for which the student may be eligible.

Award Letter

An offer from a college or career school that states the type and amount of financial aid the school is willing to provide if you accept admission and register to take classes at that school.

undergraduate student

An undergraduate is a student who is pursuing either a one-, two-, or four-year degree.

merit-based award

Awards based on students skills, talents and abilities. Example: Sports, GPA, Test scores, etc...)

Credit Hour

Credit given for attending one lecture hour of class each week for 15 weeks or equivalent. Most college classes are three credit hours, meaning their total meeting time for a week is three hours.

Promissory note

The binding 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. It's important to read and save this document because you'll need to refer to it later when you begin repaying your loan or at other times when you need information about provisions of the loan, such as deferments or forbearances.

Student Contribution

This is the amount a student is expected to contribute to his or her educational expenses.

Student Aid Index

This is the number that's used to determine your eligibility for federal student financial aid. This number results from the financial information you provide in your FAFSA® form, the application for federal student aid. Your SAI is reported to you on your Student Aid Report (SAR).

Cost of Attendance (COA)

Total amount it will cost you to go to school (includes tuition and fees as well as personal expenses).

Honors College

When 2 year or 4 year schools have special accommodation programs. These can be programs for those who are academically advanced.

university

a collection of colleges, has undergraduate programs which award bachelor degrees and graduate program for masters' degrees and doctorates.

grant

a financial award given by a government agency to a private individual or group in order to carry out a specific task

PhD (Doctor of Philosophy)

a research degree that requires a dissertation based on an original investigation

graduate student

a student who is studying for a degree that is higher than the one received after four years of study at a college or university

transcript

an official document showing the educational work of a student in a school or college

financial aid

any grant or scholarship, loan, or paid employment offered to help a student meet his/her college expenses. Such aid is usually provided by various sources such as federal and state agencies, colleges, high schools, foundations, and corporations.

Net cost

is the difference between total college costs and the entire financial aid package.

Priority Date or Deadline

the date by which your application must be received to be given the strongest consideration