General Terms
The estimated total cost to a#end college for a year, covering tuition, fees, room, board, and other expenses.
What is Cost of Attendance?
Financial aid, often based on need, that usually does not require repayment.
What is a Grant?
The fee for borrowing money, calculated as a percentage of the remaining loan amount.
Aid awarded for achievements like academics, arts, or athletics.
What is Merit-Based Aid?
The standard application for federal, state, and institutional aid.
What is FAFSA?
Money awarded based on achievements that typically does not need repayment.
What is a scholarship?
The initial amount borrowed, plus any added interest.
What is principal?
A FAFSA-derived number determining eligibility for federal student aid.
What is Student Aid Index (SAI)?
A document from a college detailing their financial aid offer.
What is Financial Aid Package/Award Letter?
A program providing part-time jobs for students with financial need to help cover educational costs.
What is work-study?
A waiting period after leaving school before loan repayment starts.
What is grace period?
A company managing loan payments and inquiries for the lender.
What is Loan Servicer?
Aid based on financial necessity.
What is Need-based Aid?
Money borrowed that must be repaid with interest from the government or a private source.
What is a loan?
A temporary pause on loan payments for approved reasons.
What is Deferment?
The process of adding unpaid interest to the main loan balance.
What is Capitalization?
When loan funds are sent to the institution and applied to a student's account.
What is disbursement?
A federal loan for undergraduates with financial need where the government covers interest while the student is in school, during grace periods, or deferment.
What is a subsidized loan?
Failure to make loan payments as agreed, leading to serious consequences.
What is Default?
A federal loan where the borrower is responsible for all interest from the start".
What is Unsubsidized Loan?