WSU - Resources/Forms: Glossary

Financial Aid Glossary

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American College Testing Program (ACT)
One of the processors of the Free Application For Federal Student Aid (FAFSA).

Borrower
Person responsible for repaying a loan who has signed and agreed to the terms in the promissory note.

Campus Based Aid
Federal College Work Study (CWS), Perkins Loan, Nursing Loan, and SEOG Grant.

Central Processing System (CPS)
This is where the FAFSA is processed.

Consortium
This is a process in which the student can attend two universities and receive financial aid at their home school to cover the costs at their visiting university.

Cost of Attendance (COA)

This is typically a yearly figure, created by the Office of Financial Aid using rules established by law, of the total amount it will cost a student to attend Wright State University. The COA includes tuition and fees; on-campus room and board (or a housing and food allowance for off-campus students who do not reside with their parents); and allowances for books, supplies, transportation, personal expenses, and loan fees. When students are awarded financial aid, the total amount of financial aid cannot exceed the COA. (Also referred to as Student Expense Budget.)

Default
Failure to repay a loan in accordance with the terms of the promissory note.

Deferment
The temporary postponement of loan payments.

Delinquency
Incidents of late or missed loan payments, as specified in the terms of the promissory note and the selected repayment plan.

Disclosure statement
Statement that is sent to the borrower of a student loan outlining the actual cost of the loan including the interest rate, and any loan fees and estimated disbursement date(s).

Electronic Student Aid Report (ESAR)
This is generated by the OSFA in response to corrections made to the student's file in the EDE system.

Emergency Loan
Short term loan available in emergency situations through our office.

Enrollment Status
The number of credit hours being attempted by a student.

Entrance Counseling
A group or individual session during which Direct Loan borrowers receive important information about their loan obligations. Entrance counseling is required before receiving the first disbursement of loan funds

Expected Family Contribution (EFC)
Parent contribution plus student contribution. Using Federal Methodology and individual family size and finances, this figure is established to set an available income that can be used by a family for the student's education.

FAFSA (Free Application for Federal Student Aid)
See Free Application for Federal Student Aid.

Federal College Work Study (FWS)
A part-time employment program which helps provide jobs for students who are in need of earnings to meet a portion of their educational expenses.

Federal Subsidized Stafford Loan
A federally financed student loan made to students meeting eligibility requirements. Students need to demonstrate some financial need. Interest is charged once a student enters repayment.

Federal Unsubsidized Stafford Loan
A federally financed student loan made to students meeting eligibility requirements. Students need not demonstrate financial need. Interest is charged throughout the life of the loan. The borrower may choose pay the interest charged on the loan or allow the interest to be capitalized (added to the principal) when the loan enters repayment.

Federal Supplemental Educational Opportunity Grant (SEOG)
Grants to undergraduate students with exceptional financial need who have not completed their first baccalaureate degree.

Financial Need (Need)
The difference between the student's cost of attendance and the expected family contribution.

Forbearance
An arrangement to postpone or reduce a borrower's monthly payment amount for a limited and specified period, or to extend the repayment period. The borrower is charged interest for forbearance.

Free Application for Federal Student Aid (FAFSA)
The official Federal form a student should file. The FAFSA is used by the university to determine eligibility for Federal Student Aid including grants, loans, and work-study. The FAFSA is required in order to apply for any student aid except the Federal Direct Parent Loan.

Grace Period
A six-month period before the first payment must be made on a Subsidized or Unsubsidized Stafford Loan. The grace period starts the day after the borrower ceases to be enrolled at least half time. During the grace period on an Unsubsidized Loan, accumulating interest must be paid or it will be capitalized.

Independent Student
A student who meets one of the following conditions: twenty-four years of age or older; an orphan; a ward of the court; a veteran of the U.S. Armed Forces; is married; has a child; is a graduate or professional student; has serious family circumstances.

Institutional Student Information Record (ISIR)
The paper record that contains the information the student mailed to the Central Processing System.

Interest
A loan expense charged by the U.S. Department of Education and paid by the borrower for the use of borrowed money. The expense is calculated as a percentage of the principal amount (loan amount) borrowed.

Loan
Money borrowed that must be repaid.

Loan Principal
The total sum of money borrowed.

Need Analysis
A system used to analyze the household and financial information and calculate an estimated family contribution.

Need Based
Financial aid that is determined by the financial need.

Outside Scholarships
Scholarships or aid, which students may obtain from sources outside the university or the federal government.

Over-Award
Any amount of financial aid that exceeds financial need.

Parent Loan for Undergraduate Students (PLUS)
Loan available to parents to help finance an education for students; not based on need.

Pell
Federal grant for which eligibility is determined by the EFC (Expected Family Contribution) and cost of attendance.

Perkins Loan
Federal loan given to students who have exceptional financial need; interest rate is 5%. Loan is administered by Wright State University.

Personal Identification Number (PIN)
This number is used to serve as your electronic signature when filing your FAFSA online. You can request a PIN at www.pin.ed.gov

Prepayment
Any amount paid on a loan before the loan is required to be paid in the terms set by the promissory note. There is never a penalty for prepaying principal or interest on Stafford Loans.

Promissory Note
A legally binding contract between the U.S. Department of Education and a borrower. In this document, the
borrower promises to repay the loan. The promissory note contains the terms and conditions of the loan,
including how and when the loan must be repaid.

Repayment Schedule
A statement provided by the Direct Loan Servicing Center to the borrower that lists the amount borrowed, the amount of monthly payments, and the date payments are due.

Satisfactory Academic Progress (SAP)
Maintaining successful progress towards the completion of a course of study. Measured by the successful completion of hours and cumulative GPA.

Student Aid Report (SAR)
This form is sent to the student from the processing agency. This form should be reviewed by the family for accuracy. If accurate, they should be kept by the family for their records. If inaccurate, they should be corrected, signed by the appropriate individuals, and returned to the Office of Financial Aid.

Student Expense Budget
This is typically a yearly figure, created by the Office of Financial Aid using rules established by law, of the total amount it will cost a student to attend Wright State University. The student expense budget includes tuition and fees; on-campus room and board (or a housing and food allowance for off-campus students who do not reside with their parents); and allowances for books, supplies, transportation, personal expenses, and loan fees. When students are awarded financial aid, the total amount of financial aid cannot exceed the student expense budget. (Also referred to as Cost of Attendance.)

Verification
The process whereby the school collects documentation (tax returns, etc.) to ensure all figures and information the student reported on the financial aid application is correct. If applicable, the school may also request the student's spouse and parent(s) information.

Veterans Administration (VA)
Federal agency responsible for Veteran's affairs. At Wright State, VA means the Veteran's Affairs Office, this office is separate from the Financial Aid Office.