Financial Aid Terms
Federal Perkins Loan - Awarded based on exceptional need. Interest is subsidized ad fixed at 5%. No fees. Favorable benefits may be lost upon consolidation. Repayment begins 9 months after graduation or dropping below half-time enrollment status.
Expected Family Contribution (EFC) - Amount a family is expected to contribute to a student's education, based on family earnings, net assets, savings, size of family, and number of students in college.
Credit-Worthy - An individual with no negative credit history per the criteria established by the lender.
Cost of Attendance (COA) - The total cost of attending a post secondary institution for one academic year. The student's budget usually includes tuition, fees, room, board, supplies, transportation, and personal expenses.
Borrower - The person who applies for a loan and receives the money.
Award Letter - An official document issued by a financial aid office listing all the aid awarded to the student. The award letter will include information about the cost of attendance and terms and conditions for he financial aid.
Federal Parent PLUS Loan - If loan originated on/after July 1, 2006: Direct PLUS fixed interest rate is 7.9% with 4% fees. Repayment begins 60 days after full disbursement, or 6 months after student graduates or drops below half-time. Interest continues to accrue during deferment.
Free Application for federal Student Aid (FSFSA) - the form that must be completed by students and parents applying for federal student aid.
Financial Need - The difference between the cost of attendance at a college and the EFC. Also, known as financial aid eligibility.
Promissory Note - Contract between a borrower and a lender that includes the terms and conditions under which the borrower promises to repay the loan.
Student Aid Report (SAR) - A report, summarizing financial and other information reported on the FAFSA, sent to a student by the federal government. The student's financial aid need is indicated by the Expected Family Contribution (EFC), which is printed on the document.
Student Financial Aid - Financial assistance in the form of scholarships, grants, work-study, and loans for education.