| Adjusted Gross Income |
All taxable income minus deductions. |
| Assets |
Savings and checking accounts, business value,
stocks, bonds, real estate, trust funds. Cars are not
considered assets, nor are retirement accounts or personal possessions
such as stamp collections or musical instruments. |
| Benefit |
Funds that students are entitled to
under special conditions. |
| Cost of Attendance |
The total amount it will cost a student to go
to school. Typically included are such items as tuition
and fees, room and board, and estimates of such expenses as
books, transportation, medical, day care and dependents' allowances.
For the State Grant Program it includes actual tuition and fees,
a living allowance, and miscellaneous expenses. Campus
financial aid administrators typically use more ample living
and miscellaneous allowances than the state program. |
| Co-Signer |
This is a credit worthy individual, usually a
parent or spouse, who has agreed to share the responsibility
for repayment of a student loan with you. |
| Default |
Being delinquent in repaying a student loan more
than a predetermined number of days or failure to comply with
any of the other terms of the promissory note. |
| Deferment |
A postponement of the loan repayment. Conditions
for deferment vary by loan program. |
| Delinquency |
The act of missing a scheduled payment on a student
loan. If delinquency persists, default will occur. |
| Dependent Student |
Student is dependent on his/her parents for financial
support. |
| Disbursement |
This is the act of sending or handing a loan check
to the student so that it can be cashed. A student loan
could be disbursed in one, two, or three payments. Disbursements
can be sent electronically to the student's school to credit
his or her school account. |
| Exclusions from Gross Income |
Benefits received by the tax filer that do not
have to be included in their gross income for tax purposes.
Examples are grants and scholarships, employer provided educational
assistance, student loan debt forgiveness, and tuition reductions
for post-secondary education employees and their families. |
| Expected Family Contribution (EFC) |
A calculation based on the need analysis of how
much of a family's resources should be available to pay toward
the cost of attendance. This calculation is received after
completing the FAFSA. |
| Financial Aid Administrator |
A professional employee at each post-secondary
institution with special knowledge and background in student
financial aid. |
| Financial Aid Package |
Assembled by the financial aid office, the financial
aid package contains an estimate of the total amount of financial
aid a student is to receive. It may include grant, work,
and loan funds from a variety of sources. This estimate
is calculated using a mathematical formula set by federal law. |
| Financial Need |
The difference between the cost of attending a
post-secondary institution and the family's ability to pay for
those costs. |
| Free Application for Federal Student
Aid (FAFSA) |
The form that must be completed by all students
and parents who apply for federal student aid. It is the
only form that can be used to apply for Minnesota State Grant
funds and, at most post-secondary institutions, for institutional
funds. |
| Grant |
An outright award to the student, usually based
on financial need. The student does not have to repay
this money. |
| Guarantee Fee |
A fee that is deducted from the proceeds of the
Stafford Student Loan and forwarded by the lender to a guarantor
in return for its guaranteed coverage against default. |
| Half-time |
At schools measuring progress by credit hours
and academic terms, at least six semester hours or quarter hours
per term; at schools measuring progress by clock hours, at least
12 hours per week; at schools measuring progress by credit hours,
but not using academic terms, at least 12 semester hours or
18 quarter hours per year. |
| Interest |
This is the fee charged to borrow money.
Interest charges are in addition to the principal of the loan. |
| Interest Subsidy (Also interest
benefits) |
The payment of interest in Stafford Student Loans
by the U.S. Department of Education for student borrowers while
they are in school. |
| Loan-subsidized |
Interest-free until the student leaves school. |
| Need Analysis |
A procedure used to estimate a student applicant's
need for financial assistance to help meet his or her educational
expenses. It consists of two major components; arriving
at an estimate of the applicant's and/or the family's ability
to contribute to educational expenses, and arriving at an accurate
estimate of the educational expenses themselves. |
| Origination Fee |
A fee that is deducted from the amount of a Stafford
Student Loan. |
| Parents' Contribution |
The amount a student's parents can be expected
to contribute to their son or daughter's education; based on
analysis of their income and assets. |
| Principal |
This is the amount borrowed by the student before
interest is charged. |
| Promissory Note |
The legal document signed by the borrower prior
to receiving a student loan. Besides containing a promise
to repay the loan, it lists the conditions of the loan and terms
for repayment. |
| Scholarship |
An award to students based on academic achievement
and usually on financial need. The student does not have
to repay this money. |
| Student Budget |
The amount of money the student will need to pay
tuition and fees, books and supplies, room and board, personal
expenses, and transportation. These figures will be determined
by the financial aid administrator. |
| Student Aid Report (SAR) |
Report on the results of student's need analysis
based on information supplied on the Free Application for Federal
Student Aid. The report is used to make corrections. |
| Student Contribution (SC) |
The amount that a student/spouse can be expected
to contribute to the cost of attendance based on need analysis
of income and assets. |
| Tax Credit |
As in the Federal Hope and Lifetime Learning Tax
Credits, means a credit against a tax liability. The tax
filer is able to subtract the amount of credit from tax liability.
The tax filer must have tax liability to receive the Hope or
Lifetime credit. (this is what is meant by a "nonrefundable"
credit) |
| Tax Deduction |
Tax deductions are subtractions from income.
In the case of student loans, some tax filers may be able to
deduct some interest from income. Some tax filers will
do this when they "itemize" their tax deductions.
However, tax filers who do not itemize will be able to deduct
interest on student loans. |
| UNIPAC Service Corporation |
A private, for profit company hired by the Minnesota
Higher Education Services Office to service its Student Educational
Loan Fund loans. A loan servicer bills students for scheduled
payments, records those payments when made, encourages payments
when not made, and generally monitors the status of a student
loan for the student, lender, and guarantor. |
| Work-Study Program |
Students are paid a government-subsidized wage
to work on a campus. |
