GLOSSARY
CSS Profile, Profile
The CSS Profile is a fee-based needs-analysis service provided by the College Scholarship Service (CSS). It is required for financial aid applicants at a number of private colleges, who use the profile in determining the awarding of their own institutional financial aid funds, Colleges that use the Profile require in addition to that FAFSA of all applicants for financial aid.
EOP, Educational Opportunity Program
Educational Opportunity Programs offer academically and financially disadvantaged students support programs in both areas while in college. Students are usually considered for entrance in to evaluation by each individual college to which they apply.
FAFSA, Free Application for Federal Student Aid
The Free Application for Federal Student Aid; the US Government Form used to determine eligibility for any type of federal financial aid for post-secondary institutions.
Federal Work-Study FWS College Work Study Program, CWSP
Federal Work-Study (FWS, formerly called College Work Study or CWSP) is a government program that enables colleges to provide students with part-time employment during the academic year. Eligibility or FWS is based on need; job funds are awarded as part of a financial aid package, and are essentially a source of spending money. Most FWS jobs pay minimum wage, and are limited to 20 hours per week when school is in session.
Financial Aid
Any financial assistance for college expenses that comes in the form of grants, scholarships, loans or work/study.
Forbearance
An agreement between a lender and a student. The agreement reduces or postpones loan payments for specific period time.
Full-time Employment, full-time job
A job that requires 40 or more hours of work per week.
Grant, grant-in-aid
A form of merit or need-based financial aid that does not require repayment by the student.
Gross monthly income
Gross income divided by 12 months.
Indebtedness
The total amount of debt incurred by students completing a degree is referred to as indebtedness.
Independent student
A designation used by financial aid methodologies, colleges and universities to denote a student who is: either 24 years of age, a veteran of military service, an orphan, a married individual, or an individual with a dependant child.
Institutional form, institutional aid form, institutional financial aid form
Any college-specific financial aid form used by individual, or universities to determine non-federal aid for admitted students.
Interest
Fees charged on a percentage basis for loans offered to students borrowing funds for college expenses.
Interest Only Payments
Payments made by students and/or their parents to cover interest accrued on loans while the student is in college.
Merit-Aid, Merit Awards, Merit Scholarship
Merit aid is non-need based scholarship or grant aid from college or outside sources (not the Federal government) that is awarded in recognition of some type of outstanding student achievements or talent, usually in academics, athletics, or in the arts. Sometimes admission officers use merit aid simply to attract outstanding admits to enroll at their college. These awards should not be confused with National Merit Scholarships, a specific outside scholarship program.
Parent Loan for Undergraduate Students, PLUS loans, plus
Parent Loan for Undergraduate Students, (PLUS) are low -interest loans guaranteed by the parents, which may borrow up to the full cost of their child's education less the amount any other form of financial aid received less amounts of any other financial aid received. Since these loans are offered through direct lending or private lenders, there is a credit check required. These loans are intended as a last resort, typically carry a higher interest rate than other college loans programs, and require repayment to begin immediately. These forms typically ask for additional information from students and their families not sought by the FAFSA.
Payoff Amount
Payoff amount is the balance due on a loan necessary to completely pay off a debtor's obligation.
Repayment period
Repayment period refers to the tern of a loan, the period over which the borrower is required to make payments towards settling the balance due.
Promissory Note
A promissory note is the binding legal document that must be signed by a borrower before loan funds are disbursed by the lender. The promissory note states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy, and cancellations.
Scholarship
Scholarships are one form of financial aid given to students to help and pay for their education, and are offered by governments, colleges and private, outside sources. Scholarships are a form of a gift and do not have to be repaid; they can be base upon financial need, merit, or both.
Selective Service, Selective Service System, the Draft
Selective Service refers to the government agency charged with registration for the military draft. Male students who are US citizens and have reached the age of 18 must be registered with Selective Services in order to be eligible for federal financial aid.
Stafford Loans, unsubsidized Stafford loans, subsidized Stafford loans, guaranteed student loans
Stafford loans are federal loans that come in two forms, subsidized and unsubsidized. Subsidized Stafford loans, formerly known as guaranteed student loans, are distributed based on need. Unsubsidized Stafford loans are available to any college student. The federal government pays the interest on subsidized Stafford Loans while the student is in college, and during a 6-month grace period after graduation. With unsubsidized Stafford loans students are responsible for paying the interest as it accrues on their loans.
State Residency Requirements
Student loan, Student Loans
Student loans are loans with low interest rates offered for the expressed purpose of pursing education. Such loans are available from Federal and state governments, academic institutions, and private lenders.