Academic Year:

A period of time schools use to measure a quantity of study. For example, a school's academic year may consist of a fall and spring semester, during which a student must complete 24 semester hours. Academic years vary from school to school, and even from educational program to educational program at the same school.

Citizen/Eligible Noncitizen:

You must be one of the following to receive federal student aid:

• U.S. citizen
• U.S. national (includes natives of American Samoa or Swain's Island)
• U.S. permanent resident who has an I-151, I-551, or I-551C (Alien Registration Receipt Card)

If you're not in one of these categories, you must have an Arrival-Departure Record (I-94) from the U.S. Immigration and Naturalization Service (INS) showing one of the following designations in order to be eligible:

• "Refugee"
• "Asylum Granted"
• "Indefinite Parole" and/or "Humanitarian Parole"
• "Cuban-Haitian Entrant, Status Pending"
• "Conditional Entrant" (valid only if issued before April 1, 1980)

If you have only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), you aren't eligible for federal student aid.

If you're in the United States on an F1 or F2 student visa only, or on a J1 or J2 exchange visitor visa only, you can't get federal student aid. Also, persons with G series visas (pertaining to international organizations) are not eligible for federal student aid.

NOTE: Citizens and eligible noncitizens may also receive loans from the Federal Family Education Loan (FFEL) and William D. Ford Direct Loan (Direct Loan) programs at participating foreign schools.

Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, and Palau are eligible only for Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOGs), or Federal Work-Study. These applicants should check with their financial aid administrators for more information.

Cost of Attendance (COA):

The total amount it will cost a student to go to school--usually expressed as a yearly figure. It is determined using rules established by the U.S. Congress. The COA includes tuition and fees; on-campus room and board (or a housing and food allowance for off-campus students); and allowances for books, supplies, transportation, loan fees (if applicable), dependent care, costs related to a disability, and miscellaneous expenses. Also included are reasonable costs for eligible study-abroad programs.

An allowance (determined by the school) is included for reasonable costs connected with a student's employment as part of a cooperative education program. For students attending less than half time, the COA includes only tuition and fees and an allowance for books, supplies, transportation, and dependent-care expenses. Talk to the financial aid administrator at the school you're planning to attend if you have any unusual expenses that might affect your cost of attendance.

Default:

Failure to repay a loan according to the terms agreed to when you signed a promissory note. Default also may result from failure to submit requests for deferment or cancellation on time.

Eligible Program:

A course of study that leads to a degree or certificate and meets the U.S. Department of Education's requirements for an eligible program. To get federal financial aid, you must be enrolled in an eligible program, with two exceptions:

• If a school has told you that you must take certain coursework to qualify for admission into one of its eligible programs, you can get a Direct Loan or a FFEL Program Loan (or your parents can get a PLUS Loan) for up to 12 consecutive months while you're completing that coursework. You must be enrolled at least half time, and you must meet the usual student aid eligibility requirements.
• If you're enrolled at least half time in a program to obtain a professional credential or certification required by a state for employment as an elementary or secondary school teacher, you can get a Federal Perkins Loan, Federal Work-Study, a FFEL Stafford Loan, a Direct Loan (or your parents can get a PLUS Loan) while you're enrolled in that program.

Expected Family Contribution (EFC):

The Expected Family Contribution (EFC) is the amount your family is expected to contribute towards your college expenses. The EFC is determined by the federal government based on the information you provided on the FAFSA. Once you have the EFC, you subtract the amount from the total of your expected college expenses to find out your financial need. The EFC is the same no matter what the cost of your schooling. However, the financial aid needed will vary depending on the cost of your schooling.

FAFSA:

The FAFSA is the Free Application for Federal Student Aid. It asks for your family's financial information so it can determine financial need. Financial need is defined as the difference between college expenses and your family's contribution. To determine your family's contribution the federal government uses a formula called the Federal Methodology which takes into account your family's income, assets, debts, size of family, number of member's in college, age to retirement, and other expenses.

You must fill out the FAFSA in order to start the financial aid process. Schools use the federal government's determination of financial need to determine the award package from the school.

Financial Aid Package:

The total amount of financial aid (federal and nonfederal) a student receives.

General Education Development (GED) Certificate:

A certificate students receive if they've passed a specific, approved high school equivalency test. Students who don't have a high school diploma but who have a GED may still qualify for federal student aid. A school that admits students without a high school diploma must make a GED program in the vicinity of the school available to these students and must inform them about the program.

Guaranty Agency:

The organization that administers the FFEL Program for your school. The federal government sets loan limits and interest rates, but each guaranty agency is free to set its own additional limitations, within federal guidelines. This agency is the best source of information on FFEL Program loans. To find out the name, address, and telephone number of the agency serving your state, as well as information about borrowing, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).

Half Time:

At schools measuring progress by credit hours and semesters, trimesters, or quarters, half-time enrollment is at least six semester hours or quarter hours per term. At schools measuring progress by credit hours but not using semesters, trimesters, or quarters, half-time enrollment is at least 12 semester hours or 18 quarter hours per year. At schools measuring progress by clock hours, half-time enrollment is at least 12 hours per week. Note that schools may choose to set higher minimums than these.

You must be attending school at least half time to be eligible to receive Direct or FFEL Program loans. Half-time enrollment is not a requirement to receive aid from the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study, and Federal Perkins Loan programs.

Independent Status:

You're an independent student if at least one of the following applies to you:  Otherwise, you are considered a dependent student.

• you were born before January 1, 1984
• you're married (or separated, but not divorced)
• you're enrolled in a graduate or professional educational program (beyond a bachelor's degree)
• you have legal dependents other than a spouse
• you're an orphan or ward of the court (or were a ward of the court until age 18)
• you're a veteran of the U.S. Armed Forces ("veteran" includes a student who attended a U.S. military academy who was released under a condition other than dishonorable)

If you claim to be an independent student, your school may ask you to submit proof before you can receive any federal student aid. If you think you have unusual circumstances that would make you independent even though none of the above criteria apply to you, talk to your aid administrator. He or she can change your status if he or she thinks your circumstances warrant it based on the documentation you provide. But remember, the aid administrator won't automatically do this. That decision is based on his or her judgment, and it's final.

Need-Based Aid:

The idea behind need-based aid is that it should cover the costs that the family cannot. Eligibility for need-based aid requires completion of a need analysis application. Need-based aid theoretically allows you to choose your college based foremost on how it will meet your academic and professional needs, and not necessarily on what the family can afford. Need-based aid attempts to eliminate the worries about paying for college - allowing families to pay what they can afford.

Non-Need-Based Aid:

For students and families that do not qualify for need-based financial aid, there are non-need and merit-based awards. Non-need based aid -- specifically unsubsidized loans -- is given primarily on the basis of the credit worthiness of the borrower. Merit-based awards are given independent of the family's ability to pay for college and are usually awarded based on individual talents or abilities (athletic, academics, leadership, etc.) or group affiliations (clubs, business, etc.).

Profile:

To award their own school funds, some schools require, in addition to the FAFSA, a second application for financial aid called the Financial Aid Profile. The Profile asks additional questions that some colleges and awarding agencies feel provide a more accurate assessment of the family's ability to pay for college. One of the additional pieces of information is the reporting of the equity you have in your home. In order to start this process you need to register for the Profile.

Once you register you will receive the application with specific questions tailored to the needs of the schools you told them you would be applying to. There is a fee for each school you send a Profile. Registration packets are available at your high school career center or guidance office.

Promissory Note:

The binding legal document you sign when you get a student loan. It lists the conditions under which you're borrowing and the terms under which you agree to pay back the loan. It will include information about your interest rate and about deferment and cancellation provisions. It's very important to read and save this document because you'll need to refer to it later when you begin repaying your loan.

Regular Student:

One who is enrolled in an institution to obtain a degree or certificate. Generally, to receive aid, you must be a regular student. (For some programs, there are exceptions to this requirement. See the definition of eligible program.)

Satisfactory Academic Progress:

To be eligible to receive federal student aid, you must maintain satisfactory academic progress toward a degree or certificate. You must meet your school's written standard of satisfactory progress. Check with your school to find out its standard.

If you're enrolled in a program that's longer than two years, the following definition of satisfactory progress also applies to you: You must have a C average by the end of your second academic year of study or have an academic standing consistent with your school's graduation requirements. You must continue to maintain satisfactory academic progress for the rest of your course of study.

Selective Service Registration:

If required by law, you must register, or arrange to register, with the Selective Service to receive federal student aid. The requirement to register applies to males who were born on or after January 1, 1960, are at least 18 years old, are citizens or eligible noncitizens, and are not currently on active duty in the U.S. Armed Forces. (Citizens of the Federated States of Micronesia, the Marshall Islands, or Palau are exempt from registering.)

Student Aid Report (SAR):

Within four to five weeks after mailing your FAFSA, a Student Aid Report (SAR) will be sent to you with Federal Pell Grant eligibility information and the results of your financial aid need analysis. It will state your Expected Family Contribution (EFC). When you receive the SAR, check it for accuracy and then make sure the financial aid office of each school you are applying to has received a copy.

Each school will subtract the Pell Grant and EFC from the cost of attending their school to determine the amount of financial need you have for their school. Once they determine your need, they will create a financial aid award based on grants, loans, and work study to meet that need.