Academic Competitiveness Grant (ACG) This federal grant program is for full time Federal Pell Grant eligible US citizens who have completed a rigorous high school program of study and are at the first year (less then 24 credits) or second year (between 24 and 54 credits). A rigorous high school program generally outlined includes 4 years of English, 3 years or more of math, science and social studies and at least one year of a foreign language. The first year award is $750 and the second year award is $1300 but the recipient must also have at least a 3.0 GPA at the end of their first year.
Accruing interest The adding of interest to a loan amount. For some loans, interest charges begin to add up as soon as the loan is made, increasing total due.
Borrower The person who assumes legal obligations for the repayment of the loan principal plus interest. In the case of a Federal Perkins Loan, Graduate PLUS, or Federal Stafford Loan, the borrower is the student. In the case of the Parent PLUS Loan, the borrower is the parent.
Consolidation Combining two or more loans into one new loan that may feature a longer repayment period, and a single monthly payment that is smaller than the sum of previous monthly payments. Although this may help with the borrower's monthly expenses, consolidation loan borrowers may pay more in interest over the life of the loan.
Cosigner A signer other than the borrower who agrees to assume responsibility for repayment in the event that the borrower fails to repay. Private educational alternative loans may require cosigners but federal loans usually do not.
Cost of Attendance (Budget) The cost of attendance includes not only tuition and fees, but also expenses such as books and transportation while attending school. The cost of attendance is determined by Husson University using guidelines established by federal regulations.
Default A borrower's failure to repay according to the terms agreed upon when the promissory note was signed. Default can also occur when a borrower fails to submit requests for deferment or cancellation. When a borrower defaults on a federal student loan, the school, the organization holding the loans, the guarantee agency, and the federal government may all take action to recover the funds. A borrower is considered to be in default when payments are 180 or more days overdue and no satisfactory arrangements for repayment, deferment, or forbearance have been made. Assets, including Internal Revenue Service (IRS) refunds may be garnished, and the borrower's credit record or history will be negatively affected. Student loan borrowers cannot get out of default until they pay back their loan in full or make satisfactory payment arrangements with their lender. They are also ineligible for additional federal student aid, including grants and loans until the default has been resolved.
Deferment An authorized period of time during which a student loan borrower may postpone making payments. Borrowers must file deferment forms with each lender. Deferments are available if borrowers are enrolled in school at least half-time, enrolled in a graduate fellowship program or rehabilitation training program, unemployed, or experiencing demonstrated economic hardship. The federal government makes interest payments on subsidized Stafford loans during deferment periods.
Dependent A student is considered dependent if he/she is required to include parent information on the FAFSA. For an individual to be considered your dependent, they must live with you and you must provide them with more than half of their financial support. Spouses do not count as dependents.
Disbursement The process by which funds are made available to students for use in meeting educationally related expenses. Funds are first credited to the student's account.
Disclosure Statement Lenders are required to provide the borrower with a disclosure statement prior to issuing a loan. The disclosure statement provides the borrower with information about the actual cost of the loan, including the interest rate, origination, insurance and loan fees, and any other kinds of finance charges.
Entrance/Exit Counseling Borrowers are required to attend counseling sessions per federal regulations before they receive their first federal loan disbursement, and again prior to leaving school.
Expected Family Contribution (EFC) The amount that a student and his/her parents are expected to contribute toward college costs, as determined by Federal Methodology. The EFC is usually a combination of parent and student resources. See also Federal Methodology. Note that the EFC is not your Husson University bill. The EFC is used in determining eligibility for grant, scholarship, work-study, and loan programs.
Free Application for Federal Student Aid (FAFSA) A form distributed and processed by the U.S. Department of Education, used in applying for all federal Title IV student aid programs, as well as some state and institutional programs. The FAFSA collects the information required to determine need and eligibility according to Federal Methodology. The FAFSA is available online at www.fafsa.ed.gov , in high school guidance offices, or from the Husson Financial Aid Office.
Federal Family Education Loan Program (FFELP) Education loans provided by private lenders and guaranteed by the federal government that must be repaid. FFELP Loans include: Subsidized and Unsubsidized Stafford loans, as well as Graduate and Parent PLUS loans.
Federal Methodology The formula according to which a student's eligibility for Federal Title IV funds is determined. The formula takes into account income, some assets, expenses, family size, and other factors.
Federal Pell Grant The Federal Pell Grant is available to students who are eligible per Federal Methodology, as a result of information submitted on the FAFSA. This grant is gift aid that does not need to be repaid.
Federal Perkins Loan The Federal Perkins Loan is available to students who have demonstrated financial need according to Federal Methodology, as a result of information submitted on the FAFSA. The federal government pays the interest on this loan while the student is enrolled at least half time. The interest rate is fixed at 5%, and the loan will go into repayment 9 months after the student leaves school.
Federal Supplemental Educational Opportunity Grant (FSEOG) The Federal Supplemental Educational Opportunity Grant is available to students who have demonstrated the highest financial need according to Federal Methodology, as a result of information submitted on the FAFSA. This grant is gift aid that does not need to be repaid.
Federal Work-Study Federal Work-Study allows a student to earn money by working a part-time job, which can be on campus or off campus at selected nonprofit organizations. Students must demonstrate financial need according to Federal Methodology to be offered work-study. Federal Work-Study is not subtracted from a student's bill; instead the student receives a paycheck every two weeks.
Financial Aid Assistance provided to students to help them meet both direct costs of education (tuition/fees, on-campus room and board, books) and indirect costs (travel, personal expenses, off campus room and board). There are four sources of financial aid: federal government, state government, private organizations, and post-secondary institutions.
Financial Aid Award An offer of financial assistance to a student attending a postsecondary educational institution. This award may be in the form of one or more of the following types of financial aid: repayable loan, a non-repayable grant and/or scholarship, and/or student employment.
Financial Aid Award Letter A letter sent to students regarding aid offered for an academic year. To accept or decline aid, students must return the accompanying Award Acceptance letter to the Husson University Financial Aid Office.
Financial Need The difference between what it costs to attend a particular college and the amount that is determined that a student and his/her family can afford to pay towards those expenses (EFC). Also known as "demonstrated financial need".
Grace Period A specified period of time after a student leaves school or drops below half time status during which he/she is not required to make payments on either principal or interest. The grace period is typically six to nine months, depending on the type of loan.
Grants Money that doesn't need to be repaid. Also known as gift aid.
Guarantor A state, regional, or national organization that acts as an agent for the federal government in the administration and insurance of FFELP loans made by private lenders.
Holder The organization with legal title to a borrower's loan. The holder may be the lender that originally made the loan, a secondary market to which the lender has sold the loan, or, in the event of default, the guarantee agency or the federal government.
Interest The fee charged to a borrower for the use of someone else's money, computed as a percentage of what is borrowed. The interest rate may remain constant throughout the life of the loan (fixed) or may change at specified times (variable).
ISIR (Institutional Student Information Report) This is an electronic record sent to the school as a result of completing the Free Application for Federal Student Aid (FAFSA). See SAR for more information.
Legal Guardian An individual appointed by a court to be a legal guardian of a person and who is specifically required by the court to use his/her own financial resources to support that person. This person is not considered a "parent" for financial aid purposes; please contact the Financial Aid Office for more information.
Lender A financial institution such as a bank, a savings and loan association, a credit union, or a qualified program that makes FFELP and/or private loans.
Matriculated To be enrolled at an eligible institution working toward a degree or certificate in an eligible program.
National Science and Mathematics Access to Retain Talent (SMART) Grant This $4000 federal grant program is for full time Federal Pell Grant US citizen recipients majoring in Computer Information System, Chemistry or Biology who have attained at least 54 credits and have a GPA of 3.0 or better prior to each semester of eligibility.
Origination Fee A fee charged by the federal government and deducted from the proceeds of a loan before disbursement; partially offsets the administrative costs of the federal loan programs.
Outside Assistance Outside assistance includes scholarships, grants, waivers, and loans to be used toward the student's college expenses. Students are required to notify the Financial Aid Office in writing of any outside financial assistance. Students will be notified of changes in their financial aid award as a result of outside assistance.
Parent Contribution The amount that Federal Methodology suggests a dependent student's parents can reasonably be expected to contribute toward that child's educational expenses.
PIN Number A number that defines the student and/or parent to the federal student aid programs. A PIN number allows you to electronically sign the Free Application for Federal Student Aid (FAFSA). Apply for a PIN number at www.pin.ed.gov. Your PIN number will be emailed to you within 2 to 3 days of the time you apply.
Promissory Note The legal document that binds a borrower to the repayment obligations and other terms and conditions that govern a loan program.
Principal The original amount borrowed. Origination and default fees are deducted from this amount before disbursement, and interest is computed as a percentage of principal. If a you borrow $2,500 a year for four years of college, the principal is $10,000. You then pay interest on the outstanding (or remaining) principal each month until the entire loan is paid off.
Satisfactory Academic Progress Please refer to Keeping Your Financial Aid for Satisfactory Academic Progress standards.
Selective Service Registration All male students 18 years old and born after December 31, 1959 must be registered with selective service in order to receive federal student aid. Registration materials are available at your local post office or at http://www.sss.gov/. Students who have not yet registered may also do so when filing the FAFSA.
Student Aid Report (SAR) The SAR is sent to the student after completion and processing of the Free Application for Federal Student Aid (FAFSA). The SAR summarizes the information included in the FAFSA and contains the Expected Family Contribution (EFC). If you included an email address when you filed the FAFSA, the SAR will be sent to that email address.
Student Contribution The amount that a student can reasonably be expected to contribute towards his or her own education expenses, based on federal methodology.
Verification The process of verifying information submitted on student aid applications through the comparison of specified documents to the data on the ISIR. If you are selected for verification by the Central Processor, you may be required to submit documentation such as tax returns.