Financial Aid Terms - commonly used financial aid terms and abbreviations

1040, 1040A, 1040EZ, 1040PC

Federal tax return

Award Letter

Letter sent to you by the Financial Aid Office explaining your financial aid award.

Capitalization

The practice of adding unpaid interest charges to the principal balance of an educational loan, thereby increasing the size of the loan. Interest is then charged on the new balance, including both the unpaid principal and the accrued interest. Capitalizing the interest increases the monthly payment and the amount of money you will eventually have to repay. If you can afford to pay the interest as it accrues, you are better off not capitalizing it.

Cost of Attendance (COA)

The cost of attendance (COA), also known as the cost of education or "budget", is the total amount it should cost the student to go to school. This amount includes tuition and fees, room and board, and allowances for books and supplies, transportation, and personal and incidental expenses.

Default

Failure to repay a loan according to the terms of the promissory note. A loan is in default when the borrower fails to pay several regular installments on time (i.e., payments overdue by 270 days) or otherwise fails to meet the terms and conditions of the loan. Note: if you are in default, you may want to check out the Department of Education's Default web page.

Deferment

A deferment allows a borrower to postpone loan repayment. The federal government pays the interest charges during the deferment period on subsidized loans. Students with unsubsidized loans are responsible for the interest accrued during deferment. Students may delay paying interest charges by capitalizing the interest, thereby increasing the loan amount. Most federal loan programs allow students to defer loans while attending school a minimum of half time. Deferrals of principal and interest also are available for service under the Peace Corps Act, service under the Domestic Volunteer Service Act of 1973, or comparable service as a volunteer for a tax-exempt organization of demonstrated effectiveness in the field of community service (deferment forms are available from your lender, servicer, guarantee agency, or the Student Financial Services Office). Deferment is not permitted for loans in default.

EFC

Expected Family Contribution. The amount that the federal government has determined to be the student's/parent's contribution toward their educational expenses.

EFT

Electronic Funds Transfer. The Office of Financial Aid at Bellevue University is initiating the use of the Electronic Funds Transfer (EFT) system. EFT loan funds are electronically deposited to the student's account at Bellevue University. The student using EFT will most likely have the loan funds available much faster. .

Entrance Counseling Process

This one-on-one counseling to discuss the borrower’s rights, responsibilities, and repayment options is required for all first-time borrowers. This option is available online or in person.

Exit Counseling Process

Students who borrow money under the student loan program must complete this process. Exit briefings are mandatory for graduating students, transferring students, or students who stop attending Bellevue University on at least a half-time basis. Exit briefings may be conducted by mail, online, or in person. For problems or questions about student loans, students should contact their lender, servicer or guarantee agency. for serious/unresolved disputes contact the Department of Education Student Loan Ombudsman at (877) 557-2575 or www.fsahelp.ed.gov.

FAFSA

Free Application for Federal Student Aid The basic application for financial aid. The Bellevue University School Code is 002538.

Federal Pell Grant

The basic Federal grant.

Federal Work-Study Program

This program provides financial assistance to students through part-time employment on and off campus. Students with documented unmet need may participate in the work-study program. A work-study award is the total amount of money that a student may earn during the school year. If a student is hired in a work-study position, his or her earnings are drawn from the work-study award. Depending on hours worked during the year, a student may or may not earn the total amount awarded. Federal Work-Study offers off-campus community service job opportunities in a variety of fields and locations. Students eligible for work-study assistance are encouraged to contact the Student Financial Services Office early in the school year. Positions are limited.

FFELP

Federal Family Educational Loan Program. Inclusive name for all federal loan programs. Includes the Federal Stafford (Subsidized and Unsubsidized), and PLUS loan programs. For questions about your student loan you should contact their lender, servicer or guarantee agency (phone numbers are available from the Financial Aid Office). For problems with student loans contact the Department of Education Student Loan Ombudsman at (877) 557-2575 (website is fsahelp.ed.gov).

Financial Aid Package

The total amount of financial aid a student is eligible to receive.

Forbearance

A forbearance is the temporary postponement or reduction of student loan repayment, while interest charges continue to accrue., even on subsidized loans. The borrower must continue paying the interest charges during the forbearance period. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. You can't receive a forbearance if your loan is in default.

FSEOG

Federal Supplemental Educational Opportunity Grant. An additional federal grant for the most needy students.

GED

General Education Development Certificate. High school equivalency document.

Grace Period

The grace period is a short time period after graduation during which the borrower is not required to begin repaying his or her student loans. The grace period may also kick in if the borrower leaves school for a reason other than graduation or drops below half-time enrollment. The grace period is for six months. Note: If you have already used your grace period previously you may not be eligible for further grace.

Guarantee Fee/Insurance Fee

A fee connected with Stafford, and PLUS loans, and which goes to the guaranty agency.

Guaranty Agency

A national or state agency that insures student loans.

ISIR

Institutional Student Information Record, electronic record sent to the school of choice as a result of a completed FAFSA (see also SAR).

Loan Consolidation

An entirely new loan combining the repayment of two or more student loans, reducing the amount of monthly payments and extending the loan term.

MPN

Master Promissory Note. A legally binding document in which the borrower promises to repay a certain sum of money at a certain time. Completed the first year at Bellevue University and continues in force while attending this school.

Origination Fee

A fee paid to the federal government to help run the FFEL programs.

PLUS Loans

Federal loans made by commercial institutions that are designed to help parents meet the cost of a college education for their children.

Promissory Note

A legally binding document in which the borrower promises to repay a certain sum of money at a certain time.

SAP

Satisfactory Academic Progress. The minimum standards necessary to receive or continue to receive federal student aid.

SAR

Student Aid Report, paper document sent to the student by the central processor as a result of a completed FAFSA (see also ISIR).

For more detailed descriptions of specific grants and loans, refer to the Department of Educations Student Guide.