What Does That Word Mean?
COA - Cost of Attendance
The total cost of college for the school year as calculated by colleges that includes tuition, fees, books, supplies, transportation, food, houseing, personal expenses and somtimes the purchase of a computer.
Default
Failure to repay student loans. This can lead to legal action by the school, the lender, the state or the federal government to recover the money.
Delinquent
When at least one loan payment is late or missed. Serious delinquency results in default.
Dependent Student
If students are considered a dependent by the Department of Education*, parent financial resources will be considered when calculating financial aid. The FAFSA determines dependency status from questions in the FAFSA - it's not whether students reside with their parents or whether they are claimed on a tax return.
EFC - Expected Family Contribution
The portion of the student and family's financial resources that should be available to pay for college, based on a federal formula using the information on your FAFSA. This EFC is used to determine your eligibility for federal student aid.
Forbearance
The permission to postpone, reduce, or extend loan payments because of serious economic hardship.
Grace Period
The time between leaving school and when payment is to begin on the loans.
Home Institution
The institution where the student is enrolled in a degree or certificate program.
Host Institution
The institution where the student is taking part of his or her program requirements through either a consortium or contractual agreement.
Loan Counseling
Entrance & Exit Counseling that are required for federal student loan borrowers.
MPN - Master Promissory Note
The legally binging contract between the borrower and the Department of Education listing all terms and conditions of a loans. It will include information on how interest is calculated and about deferment and cancellation provisions. It's very important to read and save this document because student may need to refer to it later when repaying your loan.
Unmet Need
Need is the difference between your EFC and your school's cost of attendance.
COA LESS (Expected Family Contribution + Other Resources) = Gross Need
Gross Need LESS (Award – Other Resources) = Unmet Need
The aid you have been awarded may not meet 100% of your gross need. The unmet need plus the family contribution is the amount not covered by financial aid.
Origination Fee
A charge deducted from the loan to help cover the costs of making the loan.
PLUS Loan
A PLUS (Parent Loan to Undergraduate Student) Loan enables parents with good credit history to borrow money to pay the educational expenses of each child who is a dependent, undergraduate student enrolled at least half time.
Satisfactory Academic Progress
The progress students must maintain toward obtaining a degree or certificate to continue receiving financial aid. Students must meet your school's written standard of satisfactory progress. Check out the policy at COCC by clicking here.
SAR - Student Aid Report
A report from the Department of Education summarizing the information student's provide on the FAFSA.
Subsidized Loan
This is a need-based loan. The student will not be charged any interest while the student is in school.
Unmet Need
The difference between a student's total cost of attendance and the student's total available resources, including financial aid.
Unsubsidized Loan
Interest accrues from the first disbursement until the loan is paid in full. Student is responsible for the interest. If the student allows the interest to accumulate, it will be added to the principal amount of the loan.
Untaxed Income
All income you received that is not taxed or may not be reported to the IRS.
Verification
The procedure by which a college checks the information reported on the FAFSA, usually by requesting a copy of the tax transcript, w2s and worksheets.