Glossary of Financial Aid Terms
Financial aid is often a complicated and confusing process. For most of our students, applying for funds at Dean College is their first experience with financial aid. Here is a list of terms that may be new to you.
Cost of Attendance (COA)
The Cost of Attendance consists of the sum of educational costs payable to the school (also referred to as direct or billable costs) and costs paid to others (or indirect, non-billable or discretionary) costs. The Cost of Attendance represents the highest dollar amount of financial aid a student can receive during an award year.
Costs Paid to Others
Costs paid to others (also referred to as indirect, non-billable, or additional costs), are other expenses not paid directly to the school, but associated with receiving an education. These expenses are estimated by the school and may differ from student to student based on their individual circumstances. These expenses may include books, course materials, supplies, equipment, transportation, transportation and parking, personal expenses, childcare costs, computer costs, disability expenses, licensure expenses and off-campus rent and food.
Costs Paid to the school (also referred to as direct or billable costs) generally include tuition, fees, housing, and meals/food (for students residing on campus), health insurance (if minimum insurance coverage is not documented), or any other expenses paid to the school for enrollment.
Credited Aid
Funds that have been disbursed to a student's account.
Default
Occurs with a debtor who has not met their legal obligations according to the debt contract (MPN). This may include failing to make a scheduled payment or violating the terms and conditions of the loan.
Disbursement
The process by which your financial aid is credited to your student account.
Domestic Students
Students who are legal residents (with a green card) or citizens of the United States.
Educational Loan
Money borrowed from the federal government, a college or university, or a private source like a bank or financial institution to pay for educational expenses and must be paid back with interest.
Enrollment Status
The number of credits, clock hours, or classes the student is enrolled in, or whether they have withdrawn, graduated, etc. Enrollment status affects eligibility for and the amount of financial aid a student may receive. It also affects when student loans enter repayment status.
Entering Students
Students who are coming to Dean College for the first time, including transfer students.
Entrance Counseling Session
Federal Direct Loans require you to complete entrance counseling. Your entrance counseling session is a short quiz designed to teach you about the terms of your loan in order to better prepare you for repayment once you graduate. You must complete this quiz for each of your loans before they may be disbursed to your student account.
Exit Counseling Session
Federal Direct Loans require you to complete exit counseling once you graduate or are no longer enrolled at Dean College at least half-time. This short session is designed to prepare you for loan repayment. It also includes collecting references in case you default on the loan.
FAFSA
FAFSA is an acronym that stands for the Free Application for Federal Student Aid. This is a document annually prepared by the United States Department of Education. Domestic students interested in applying for financial aid must fill out this document each academic year. This information is used to review students for aid eligibility.
Federal Grant Aid
Funds provided by the Department of Education. Only U.S. citizens and permanent residents are eligible for these funds.
- Federal Pell Grant: The Pell Grant is a federal grant program designed to assist undergraduate students in low- and moderate-income households to pay for college. The award amount is based on the cost of the institution, SAI, and enrollment status, and is subject to an aggregate limit.
- Federal Supplemental Educational Opportunity Grant (FSEOG): A federal grant provided by the institution to qualified undergraduate students who demonstrate exceptional financial need and does not need to be repaid. The amount of funding from this program varies by institution.
Federal Loan
Also known as the Direct Loan Program, which allows eligible students and parents to borrow directly from the U.S. Department of Education at participating colleges or universities. Federal student loans include Direct Subsidized, Direct Unsubsidized and the Direct PLUS programs for parents of dependent students and graduate or professional students.
- Federal Direct Subsidized Student Loan: A Direct Subsidized Loan is an undergraduate federal student loan based on financial need and offers students a reduced, fixed interest rate and flexible repayment terms. Interest is subsidized, meaning it does not accrue to the borrower, while in an in-school, grace, or deferment period. Annual and aggregate limits apply.
- Federal Direct Unsubsidized Student Loan: An unsubsidized loan offers students a fixed interest rate and flexible repayment terms. It is not based on financial need. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins. Annual and aggregate limits apply.
- Federal Direct Parent PLUS Loan: Direct Parent PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay for education expenses. Parents must pass a credit check for adverse credit history to qualify for PLUS loans.
Federal Loan Consolidation
Simplify loan payments by combining many different loans into one monthly payment. Take some time to learn more about federal loan consolidation.
Financial Aid Offer
A financial aid offer is a document sent by a postsecondary institution to a student that outlines the amounts and details of the financial aid being offered to the student, which may include scholarships, grants, loans, employment, or other forms of financial assistance to pay for college expenses.
Federal Work Study (FWS)
Federal Work-Study provides funding for part-time jobs for undergraduate and graduate students with financial need. Unlike grants and loans, FWS is paid to students as they earn the funds by working.
Grace Period
The time after graduation when students are not yet required to make loan payments. This period exists to allow students to find employment after graduating or leaving college.
Grant
Need-based funds that are not required to be paid back.
Institutional Aid
Financial aid funds provided by Dean College.
Interest Rate
Rate that is charged for the use of loan funds.
International Students
Students who are not U.S. citizens.
Loan
Funds that must be paid back. Most loans carry an annual interest rate.
Loan Fee/Origination Fee
A one-time fee associated with the processing of loan funds. This is deducted from the loan amount prior to disbursement.
Master Promissory Note (MPN)
This is your loan contract. All federal, state, and private loans require you to sign an MPN before the loan can be disbursed.
Need
A student's cost of attendance minus their Student Aid Index (SAI).
Need-Based Aid
Financial assistance provided to students based on their financial situation, determined by completing the FAFSA. Need-based financial aid can take different forms, including grants, scholarships, work-study programs, and low-interest loans, like the federal direct subsidized loan.
Net Price
The difference between the cost of attendance and all grants and scholarships. Net price reflects what the student is expected to pay for their education on their own and can be covered through a variety of sources, including savings, student employment, institutional payment plans, or education loans.
Other Funding Options
Funding options outside of grants and scholarships that a student and their family may use to pay any remaining costs or expenses. This may include loans, student employment, institutional payment plans, or personal savings.
Pending Aid
Financial aid in pending status is not yet ready to be disbursed and has not been subtracted from a student's tuition bill. Further steps may need to be taken to verify these awards.
Rehabilitation
The process of repairing a defaulted loan or loans. For information on how to rehabilitate a defaulted private loan, please contact your lender directly.
Readmitted Students
Students who have left college (even for one semester) are now resuming their education at Dean College.
Returning Students
Students who have attended at least one semester at Dean College and are continuing their education. This does not include students who have left the college (even for one semester) and are now resuming their studies.
Satisfactory Academic Progress (SAP)
Students must be deemed as making satisfactory academic progress in their program of study before they can receive financial aid. This requirement includes maintaining the minimum standards for grade-point-average (GPA) and credits earned each semester.
Scholarships
Merit-based funds from Dean College are not required to be paid back. These are offered at the time of admission by the Admission Office and are based on high school performance.
Private Loan
A student or parent loan from a bank, credit union, private company, a nonprofit or state-affiliated lender, or from the college or university directly to pay for educational costs. Interest begins to accrue when the loan is disbursed, and repayment begins while the student is still enrolled in school.
Student Aid Index (SAI)
The SAI is the eligibility index used to determine your eligibility for federal, and in some instances, state and institutional need-based student financial aid. Generally, students with a higher SAI are eligible for less need-based financial aid. It is based upon the information provided by the student and their family on the FAFSA.
Tentative Financial Aid Offer
Financial aid offers that still require some form of review or documentation before they can be confirmed and finalized.
Verification
A federally mandated process to confirm the accuracy of data provided by selected applicants on the FAFSA. To complete the verification process, the student, their parent(s), or spouse, if applicable, are required to provide certain documents to the school for review. If the documentation the student provides the institution doesn't match what was reported on the FAFSA, verification can result in changes to the student's financial aid eligibility, and/or financial aid offers.