Financial Aid Glossary

    Academic Progress - A student must maintain a certain grade point average and complete at least two-thirds of attempted credits to show academic progress. Academic progress is checked on all cumulated and attempted credits on the student's academic transcript. All withdraws and incomplete grades are counted as non-completed course work.

    Academic Year - A period of time schools use to measure a quantity of study during which a student must complete 24 semester hours. Academic years vary school to school.

    Accrued Interest - The interest that accumulates on the unpaid principal of a loan.

    Annual Percentage Rate (APR) - The interest maintained on a loan for a one-year period.

    Assets - The amount of money a person has in savings and investments.

    Capitalization - The addition of unpaid accrued interest applied to the principal balance of a loan which increases the total debt outstanding.

    Conditional Standing - When academic progress requirements are not being met, the student is no longer eligible for financial aid.

    Consolidation - Combing numerous education loans into a new loan with a new payment schedule and interest rate.

    Cost of Attendance (COA) - The total amount it will cost a student to go to school - usually expressed as a yearly figure.

    Default - The failure to repay a loan in accordance with the terms of the promissory note. Default occurs after 270 day on non-payment on an account.

    Deferment - An approved temporary suspension of loan payments based on certain events and criteria.

    Delinquency - The failure to make scheduled monthly loan payments when they are due.

    Disbursement - A transaction that occurs when a lender releases loan funds.

    Eligible Noncitizen - You must be one of the following to receive federal student aid:

      U.S. Citizen
      U.S. National
      U.S. Permanent Resident (Alien Registration Receipt Card)
      Refugee
      Asylum Granted
      Indefinite Parole and/or Humanitarian Parole
      Cuban-Haitian Entrant, Status Pending
      Conditional Entrant (valid only if issued before April 1, 1980)
      Citizens of Micronesia, Republic of the Marshal Islands and Republic of Palau

    Eligible Program - A course of study that leads to a degree or certificate and meets the U.S. Department of Education's requirements for an eligible program.

    Entrance Seminar - A seminar regarding information about students rights and responsibilities regarding student loans. Seminar/Counseling can be completed online at http://www.educaid.com and http://www.pheaa.org or by attending seminar at school.

    Exit Seminar - Counsel regarding student loan payment process. Seminar/Counseling can be completed online at http://www.educaid.com and http://www.pheaa.org or by attending seminar at school.

    Expected Family Contribution (EFC) - The amount that each family is expected to pay to attend a postsecondary institution that is calculated using guidelines set by federal law.

    FDSLP - The Federal Direct Student Loan Program that provides loans to students and is administered by the postsecondary school.

    Federal Pell Grant - This is money awarded to undergraduate students based on need, and does not have to be repaid. The federal government awards this money to people with the greatest financial need.

    Federal Plus Loan -This is a loan made through a bank, credit union or savings and loan association for the parents of dependent students. Although this is a federal program, it is administered by the state (AES/PHEAA) for parents of dependent, undergraduate students.

    Federal Stafford Loan - This is a low interest loan made through a bank, credit union or savings and loan association for undergraduate or graduate level study. Although this is a federal program, it is administered by the state (AES/PHEAA).

    Federal Supplemental Educational Opportunity Grant (FSEOG) - This money is awarded to undergraduate students based on need, and does not have to be repaid. The postsecondary institution awards this money to people with the greatest need.

    FFELP - The Federal Family Education Loan Program that provides loans to students. In Pennsylvania, this program is administered by PHEAA.

    Financial Aid - This is monetary assistance to help cover the cost of education.

    Financial Aid Academic Progress Policy - Students must be in good academic standing as reflected in the College's academic progress table and must be making satisfactory academic progress by successfully completing two-thirds of all attempted credits. Based on the number of credits attempted, the student must maintain a certain Grade Point Average in order to retain eligibility for financial aid. Students have the right to appeal a determination of ineligibility for financial aid based on lack of academic progress.

    Financial Aid Package - The total amount of financial aid (federal and nonfederal) a student receives.

    Financial Need - The difference between the cost to attend a postsecondary institution and the Expect Family Contribution (EFC).

    Forbearance - The approved temporary suspension of loan payments due to financial hard-ship, during which interest continues to accrue.

    Free Application for Federal Student Aid (FAFSA) - The free application form used to apply for federal, state and institutional aide.

    General Educational Development (GED) - If you did not graduate from high school, you can take this test. If you pass the test, the GED diploma will be recognized by postsecondary institutions the same as a high school diploma.

    Grace Period - The period of time allowed before loan payments must begin. This grace period is granted in the first six months after a student either graduates, leaves school or reduces enrollment status to less than half time.

    Grade Point Average (GPA) - A student's GPA is determined by dividing the number of credits attempted into the quality points.

    Grants - Money awarded that does not have to be paid back. Give to student based on financial need.

    Guarantor - The agency or institution that insures up to permissible limits against loss to lenders in the event of a default in the FFELP.

    Interest - The money charged to a person for the use of the borrowed funds that is calculated as a percentage of the actual amount borrowed.

    Lender - The institution that provides the money to be borrowed through the student loan program.

    Loans - Money borrowed that must be paid back at specific interest rates.

    OVR - the Office of Vocational Rehabilitation (OVR) will assist people who have a disability that causes them substantial problems in preparing for, getting or maintaining a career. OVR may be able to assist a person with tuition benefits. OVR can be reached @ 814.946.7249 or 800.442.6343.

    Pennsylvania State Grant - Money awarded to undergraduate students bases on need, and does not have to be repaid. PHEAA awards this money to people with the greatest need. Part-time students are eligible for this grant.

    Plus Loans - "Parent Loan for Undergraduate Students" If you parents want to borrow funds to help pay for your education, they may borrow up to the difference between your educational costs and other financial aid each year from a bank of other lending institution through this program.

    Postsecondary School - Any school beyond high school that grants degrees or certificates.

    Principal - The outstanding amount of a loan on which the lender charges interest.

    Promissory Note - The legal and binding contract signed between the lender and the borrower stating that the borrower will repay the loan as agreed upon in the terms of the contract.

    Prosser Grant (Institutional Program) - Students showing unmet need.

    Provisional Status - A warning if academic progress is not met, student could go on conditional standing.

    Satisfactory Academic Progress - To be eligible to receive student aid, you must maintain satisfactory academic progress toward a degree or certificate.

    Scholarships - Money awarded that does not have to be paid back. Given to students who demonstrate or show promise of high achievement in areas such as academics, athletics, music, art or other fields.

    Selective Service Registration - You must register with the Selective Service to receive federal student aid. Applicable to males born on or after January 1, 1960, and are at least 18 years old, and are not currently on active duty in the U.S. Armed Forces.

    Servicer - An organization that acts on behalf of the lender to administer their student loan portfolio and is paid a fee to do so.

    State Grant Program - State funding coordinated by PHEAA that provides grants to needy state residents who meet eligibility criteria and are pursuing postsecondary education.

    Student Aid Report - The form students receive after filing a FAFSA application that notifies students of their eligibility for federal student aid.

    Subsidized Loan - A loan where the interest is paid by the Federal government while a person is in school.

    Tuition - The money you pay to attend classes at a school.

    Undergraduate - A student who has not received a bachelor's degree.

    Unsubsidized Loan - A loan where the person is expected to pay the interest while they are in school.

    Veterans Programs - The Veterans Administration provides extensive educational benefits to military personnel (veterans, reservists or active members of the U.S. armed forces) who enroll in postsecondary institutions.

    Work Study Program - Money earned by students who work on or off campus to help pay for school costs.

    Agencies