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Office of Financial Aid

Office of Financial Aid

 

  2. Glossary of Financial Aid Terms

Glossary of Financial Aid Terms

ACADEMIC YEAR:

A period of at least 30 weeks of instructional time during which a full-time student is expected to complete at least 24 semester hours.

ACADEMIC YEAR STUDENT CONTRIBUTION (AYSC):

The Academic Year Student Contribution represents the dollar amount you are expected to earn as part of your financial aid award to help meet your demonstrated financial need. It is not an expense for which you will be billed and it is not an amount that will be credited directly as payment towards your bill, but you will be paid an hourly wage for hours worked.

ACCRUAL DATE:

The day interest charges on an educational loan begins to accrue.

CAPITALIZATION:

The process of adding unpaid interest to the principal balance of an educational loan, thereby increasing the total amount to be repaid.

CITIZEN/ELIGIBLE NON CITIZEN:

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

  • U.S. Citizen
  • U.S. national (includes natives of American Samoa or Swain's Island)
  • U.S. permanent resident with an I-151, I-551, or I-551C (Alien Registration Receipt Card)

If you're not in one of these categories, you must have an Arrival-Departure Record (I-94) from the U.S. Immigration and Naturalization Service (INS) showing one of the following designations:

  • Refugee
  • Asylum Granted
  • Indefinite Parole and/or Humanitarian Parole
  • Cuban-Haitian Entrant, Status Pending
  • Conditional Entrant (valid only if issued before April 1, 1980)
  • Other eligible non-citizen with a Temporary Resident Card (I-688)

You can also be eligible based on the Family Unity Status category, with approved I-797s (Voluntary Departure and Immigrant Petition), or if you have a suspension of deportation case pending before Congress. Permanent residents of the Trust Territory of the Pacific (Palau) may be eligible for federal student aid. Citizens of the Federated States of Micronesia and the Marshall Islands are eligible for Pell Grants, SEOG, or Work Study only. You are NOT eligible for federal financial aid if you only have a Notice of Approval to Apply for Permanent Residence (I-171 or I-464A), or if you are in the U.S. on an F1, F2, J1, J2, or G series visa.

COST OF ATTENDANCE (COA):

The Cost of Attendance consists of the sum of educational costs payable to Vanderbilt (also referred to as direct or billable costs) and costs paid to others (or indirect, non-billable or discretionary) costs. The Cost of Attendance represents the highest dollar amount of financial aid a student can receive during an award year. The cost of education covers tuition and fees, housing, food, and allowances for books and supplies, transportation, and miscellaneous expenses. Certain other items may be added at the discretion of the Student Financial Aid Office. Your COA can be affected by your enrollment status.

COSTS PAYABLE TO THE SCHOOL:

Costs Payable to Vanderbilt (also referred to as direct or billable costs) generally include tuition, fees, housing, and meals/food (for students living on campus), health insurance (if minimum insurance coverage is not documented), or any other expenses paid to Vanderbilt for enrollment. 

COSTS PAID TO OTHERS:

Costs paid to others (also referred to as indirect, non-billable, or additional costs), are other expenses not paid directly to Vanderbilt, but associated with receiving an education. These expenses are estimated by Vanderbilt the school and may differ from student to student based on their individual circumstances. These expenses may include books, course materials, supplies, equipment, transportation, personal expenses, childcare costs, computer costs, disability expenses, licensure expenses and off-campus rent and food.

DISBURSEMENT:

The release of funds to the school for delivery to the student. Disbursements for most types of assistance are made in equal multiple installments.

EDUCATIONAL LOAN:

Money borrowed from the federal government, a college or university, or a private source like a bank or financial institution to pay for educational expenses and must be paid back with interest.

ENROLLMENT STATUS:

Academic course load, as defined by Vanderbilt, that a student is carrying for a defined academic period. This normally relates to the number of credit hours taken by a student during a given academic period. For undergraduate enrollment:

  • Full-time status = at least 12 credit hours
  • Three-quarter time status = at least 9 - 11 credit hours
  • Half-time status = at least 6 - 8 credit hours
  • Less-than-half-time status = less than 6 credit hours

Graduate and Professional enrollment status is determined by the particular school/program in which the student is enrolled and the number of credit hours enrolled.

Enrollment status affects eligibility for and the amount of financial aid a student may receive. It also affects when student loans enter repayment status.

ENTRANCE/EXIT COUNSELING:

Counseling sessions borrowers are required to attend before receiving their first loan disbursement and again before leaving school.

EXCESS CHECK:

A reimbursement of funds is issued to you when the sum of your loan(s), grant(s), and scholarship(s) awards is greater than your fee bill. Excess checks are disbursed by the Office of Student Accounts.

EXPECTED FAMILY CONTRIBUTION (EFC):

Your Expected Family Contribution (EFC) is an index, used to determine your eligibility for  institutional need-based student financial aid. Generally, students with a higher EFC are eligible for less need-based financial aid. It is based upon the information provided by the student and their family on the Free Application for Federal Student Aid (FAFSA) and College Board Financial Aid Profile.

FAMILY SHARE OF EXPENSES:

The family share of expenses represents our best estimate of your family's capacity to absorb, over time, the costs of education. It is not a prediction of how much cash you have on hand, a value judgment about how much a family should be able to draw from current income or a measure of liquidity. It is not the amount you must pay directly to the University, but, rather, the family's share of the total cost of education.

FEDERAL LOAN:

Also known as the Direct Loan Program, which allows eligible students and parents to borrow directly from the U.S. Department of Education at participating colleges or universities. Federal student loans include Direct Subsidized, Direct Unsubsidized and the Direct PLUS programs for parents of dependent students and graduate or professional students.

FEDERAL DIRECT SUBSIDIZED LOAN:

A Direct Subsidized Loan is an undergraduate federal student loan based on financial need and offers students a reduced, fixed interest rate and flexible repayment terms. Interest is subsidized, meaning it does not accrue to the borrower, while in an in-school, grace, or deferment period. Annual and aggregate limits apply.

FEDERAL DIRECT UNSUBSIDIZED LOAN:

An unsubsidized loan offers students a fixed interest rate and flexible repayment terms. It is not based on financial need. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins. Annual and aggregate limits apply.

FEDERAL DIRECT GRADUATE PLUS LOAN:

Direct Graduate PLUS Loans are federal loans that graduate or professional students use to help pay for education expenses. A credit check for adverse credit history is required for eligibility. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins.

FEDERAL DIRECT PARENT PLUS LOAN:

Direct Parent PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay for education expenses. Parents must pass a credit check for adverse credit history to qualify for PLUS loans.  

FEDERAL VERIFICATION:

A federally mandated process to confirm the accuracy of data provided by selected applicants on the FAFSA. To complete the verification process, the student, their parent(s), or spouse, if applicable, are required to provide certain documents to the school for review. If the documentation the student provides the institution doesn't match what was reported on the FAFSA, verification can result in changes to the student's financial aid eligibility, and/or financial aid offers.

FEDERAL WORK-STUDY PROGRAM:

Federal Work-Study provides funding for part-time jobs for undergraduate and graduate students with financial need. Unlike grants and loans, FWS is paid to students as they earn the funds by working.

FINANCIAL AID OFFER:

A financial aid offer is a document (either in paper or electronic form) sent by Vanderbilt to you that outlines the amounts and details of the financial aid being offered, which may include scholarships, grants, loans, employment, or other forms of financial assistance to pay for college expenses.

FINANCIAL AID OFFICER:

A representative of the Financial Aid Office who reviews a student's application and awards aid, and helps the student in all aspects of the financial aid process.

FINANCIAL NEED:

The difference between the Cost of Attendance (COA) and the Estimated Family Contribution (EFC) for institutional need-based assistance or the difference between the COA and Student Aid Index (SAI) for federal assistance. This amount is your total eligibility for aid from all sources, and is used in determining what your need-based financial aid offer will be.

FOLLOW-UP/MISSING INFORMATION LETTER:

The letter sent out periodically notifying the student of required documents missing and needed to process their financial aid offer.

FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA):

The federal aid application. This must be completed by all students who wish to be considered for federal, state and institutional need-based financial aid.

FAFSA SUBMISSION SUMMARY (FSS):

A form sent to the student after submitting the FAFSA to the federal processor. The FSS shows the information that was processed and indicates Pell Grant Eligibility. For duplicate reports call (319)337-5665.

GRANTS AND SCHOLARSHIPS (GIFT AID):

Any money provided to students that does not have to be repaid. They can be called grants, scholarships, tuition remissions, gift aid, or tuition waivers. Grants and scholarships are provided based on many different factors including demonstrated financial need and merit. 

INTEREST RATE:

A fee charged for the use of borrowed money. Interest is calculated as a percentage of the principal loan amount. The rate may be constant throughout the life of the loan (fixed rate) or it may change at specified times (variable rate).

INSTITUTIONAL VERIFICATION:

A process of review to determine the accuracy of the information on a student's financial aid application. If you are selected for verification, you will need to provide student and parent tax returns and any additional requested documentation Financial Aid Office.

LENDER:

A financial institution (bank, savings and loan, or credit union) that provides the funds for students and parents to borrow private educational loans.

LOAN CONSOLIDATION:

A loan program that allows a borrower to combine various educational loans into one new loan. By extending the repayment period (up to 30 years depending on the loan amount) and allowing a single monthly payment, consolidation can make loan repayment easier for some borrowers.

LOAN DEFAULT:

Failure to repay a student loan according to the terms agreed to when you signed a promissory note. If you default, your school, the organization that holds your loan, the state, and the federal government can all take action to recover the money, including notifying national credit bureaus of your default. Your wages and/or tax returns may be garnished, and you will no longer be eligible to receive federal financial aid.

LOAN DEFERMENT:

An authorized period of time during which a borrower may postpone principal and interest payments. Deferments are available while borrowers are in school at least half time, enrolled in a graduate fellowship program or rehabilitation training program, and during periods of unemployment or economic hardship. Other deferments may be available depending on when and what you borrowed. Contact your lender for additional details.

LOAN FORBEARANCE:

An authorized period of time during which the lender agrees to temporarily postpone a borrower's principal repayment obligation. Interest continues to accrue and usually must be paid during the forbearance period. Forbearance may be granted at the lender's discretion when a borrower is willing to repay their loan but is unable to do so.

LOAN GRACE PERIOD:

The period between the time a borrower leaves school or drops below half-time and the time they are obligated to begin repaying their loans – usually six months, depending on the type of loan.

LOAN ORIGINATION FEE:

A fee charged by the federal government and deducted from loan proceeds before disbursement to partially offset administrative costs of the Federal Family Education Loan Program (FFELP).

LOAN PRINCIPAL:

The amount borrowed. Interest is charged on this amount, and guaranty and origination fees will be deducted prior to disbursement.

NEEDS ANALYSIS:

A process of reviewing a student's aid application to determine the amount of financial aid a student is eligible for. Completing a needs analysis form is the required first step in applying for most types of need-based financial aid.

NET PRICE:

The difference between the cost of attendance and all grants and scholarships. Net price reflects what the student is expected to pay for their education on their own and can be covered through a variety of sources, including savings, student employment, institutional payment plans, or education loans.

NEW BORROWER:

A borrower who has no outstanding (unpaid) loan balances on the date (s)he signs the promissory note for a specific educational loan. New borrowers may be subject to different regulations than borrowers who have existing loan balances.

OTHER FUNDING OPTIONS:

Funding options outside of grants and scholarships that a student and their family may use to pay any remaining costs or expenses. This may include loans, student employment, institutional payment plans, or personal savings.

PELL GRANT:

The Pell Grant is a federal grant program designed to assist undergraduate students in low- and moderate-income households to pay for college. The award amount is based on the cost of the institution, the Student Aid Index (SAI), and enrollment status, and is subject to an aggregate limit.

PRIVATE LOAN:

A student or parent loan from a bank, credit union, private company, a nonprofit or state-affiliated lender, or from the college or university directly to pay for educational costs. Interest begins to accrue when the loan is disbursed, and repayment begins while the student is still enrolled in school.

PROMISSORY NOTE:

The legal document borrowers sign when they get a loan. It lists conditions under which the money is borrowed and the terms under which borrowers agree to repay the loan with interest. Borrowers should keep the borrower copy of their promissory notes until the loans are fully repaid.

REPAYMENT SCHEDULE:

Discloses the borrower's monthly payment, interest rate, total repayment obligation, due dates and length of time for repaying the loan.

SATISFACTORY ACADEMIC PROGRESS:

Criterion that is checked and monitored to ensure students are progressing toward completion of their programs in order to qualify for federal, state, and institutional financial aid.

SELF HELP:

Financial aid in the form of loans or student employment. Student employment earnings (including Work-Study awards) are generally not deducted from billed costs but can be used to help you cover indirect costs and are paid in the form of wages to the student. 

STATE GRANT:

State funded program provides grant to state residents who demonstrate the highest level of financial need as determined by the results of the FAFSA. Amount varies and is based on enrollment status.

STUDENT AID INDEX (SAI):

Your Student Aid Index (SAI) is an index, used to determine your eligibility for federal and state need-based student financial aid. Generally, students with a higher SAI are eligible for less need-based financial aid. It is based upon the information provided by the student and their family on the Free Application for Federal Student Aid (FAFSA).

SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS (SEOG):

A federal grant provided by the institution to qualified undergraduate students who demonstrate exceptional financial need and does not need to be repaid. The amount of funding from this program varies by institution.