AARTS
Army/American Council on Education Registry Transcript.
Accrued Interest
If you choose not to make interest payments while in
university, in your grace period, or during an authorised period of
deferment, the interest will accumulate, and be added to your principal
amount at repayment.
Award Letter
This is an official document issued by the Financial Aid
Office. It lists all of the amounts, and types (subsidised and
unsubsidised) of aid in your financial aid package. The Award Letter
also includes the terms and conditions of your financial aid.
Award Year
The 12-month period during which you attend university and for the term in which your aid has been awarded.
BASD
Basic Active Services Duty.
Capitalisation
The process by which interest is added to the principal loan
amount, if you choose not to make interest payments (when otherwise
required) while in university or in forbearance. This process
increases the amount that must be repaid and will make your monthly
payment larger.
Cost of Attendance (COA)
These expenses include tuition, room and board, books and
supplies, fees and the student’s living costs while attending
university. The COA is determined by the University, using federal
guidelines.
Cohort Default Rate
The percentage of Universities Stafford borrowers who
default before the end of the fiscal year in which they entered
repayment on their loan. The US Department of Education calculates
this rate annually to determine the default experience of students who
attended a particular school during a particular period of time. High
default rates can result in the loss of a university’s ability to
participate in the FFEL programme.
Default
The failure of a borrower to make instalment payments when due
or to meet other terms of the promissory note or other written
agreement(s) with the lender under circumstances where ED or the
guarantor of the loan reasonably concluded that the borrower no longer
intended to honour the borrower's obligation to repay a loan, provided
that this failure persists for the most recent consecutive 270 day
period of the most recent 330 day period.
Deferment
A period during which repaying loan principle is suspended as
a result of the borrower meeting one or more of a number of situations
or categories established by law. The borrower does not pay interest
on subsidised loans during deferment; interest continues to accumulate
during deferment of an unsubsidised loan.
Delinquency
The status of a loan when payment is late. Delinquency may be reported to a credit bureau after 30 days.
Disbursement
The lender’s payment of loan funds to the University. Payment
is made by cheque. Disbursement is usually made in two or more
instalments during the year.
Expected Financial Assistance (EFA)
The Expected Financial Assistance is the amount of all other
awards, scholarships, sponsorships etc that a student (or the parents
on behalf of the student) may be in receipt of. This amount is
included in the Cost of Attendance (COA) calculations.
Expected Family Contribution (EFC)
The Expected Family Contribution is the amount that a student
and family (if required) are expected to contribute toward the Cost of
Attendance (COA). This amount is based in the students or the family’s
income and assets.
Federal Family Education Loan Programme (FFELP)
The Federal Family Education Loan Programme is made up of Federal
Stafford Loans (Subsidised and Unsubsidised) Federal PLUS loans (for
parents) and Federal Consolidation Loans. All of these are long-term
loans insured by state or non-profit guarantee agencies that are
reimbursed by the US Government for all or any part of insurance claims
paid by lenders.
Federal PLUS Loan (PLUS)
Parents may borrow this FFELP loan on behalf of their
undergraduate, dependant children. Loans are made by lenders such as
banks, credit unions, or savings and loan associations. Parents must
not have an adverse credit history.
Federal Stafford Loan (Subsidised)
A FFELP loan that provides federally subsidised, low interest
loans to students in undergraduate, graduate or professional
programmes. Subsidised loans are awarded on the basis of financial
need.
Federal Stafford Loan (Unsubsidised)
A FFELP loan that provides low interest loans to students in
undergraduate, graduate, or professional programmes. Unsubsidised
loans are not awarded on the basis of financial need.
Financial Need
The difference between the student's Cost of Attendance (COA)
and the Expected Family Contribution (EFC) plus the students estimated
financial assistance.
Forbearance
The process by which a repayment schedule can be restructured
under certain conditions. The amount of the monthly payment may be
temporarily reduced or suspended, or months may be added to the
repayment term. You must contact you lender directly to receive
forbearance.
Free Application for Federal Student Aid (FAFSA)
This is the application that a student must file to apply for
financial aid. The FAFSA is printed and distributed free of charge by
the US Department of Education. It is also available online at www.fafsa.ed.gov.
Guarantee Fee
This is an optional fee charged by some guarantee agencies and
deducted from loan proceeds prior to disbursement. This fee helps
offset the administrative costs, and equates to up to 1% of your
student aid.
Grace Period
A feature of Federal Stafford loans that gives you six months
after you leave university or drop below half-time status before you
must start making monthly payments on your loan.
Interest
The fee that is charged by the lender in exchange for lending
the money. The interest rate, usually expressed as a percentage of the
loan amount, may stay the same for the term of the loan (fixed rate) or
it may change periodically (variable rate).
Master Promissory Note (MPN)
A legally binding document between the borrower and the lender that obliges him or her to repay the loan according to its terms.
Origination Fee
A fee charged by the federal government and deducted from the
loan funds prior to disbursement. The fee is used to offset
administration costs.
Principal
The amount borrowed. This is the amount to which interest is charged.
SAR
The report sent directly to a student from ED’s Central
Processing System (CPS) that summarised information submitted on the
student's FAFSA. It also provides financial-need calculations,
including the student's EFC based on submitted figures.
Satisfactory Academic Progress
The achievement of required Grade Point Average (GPA) within
the defined timeframes, to ensure continued access to Financial Aid.
Separation Date
The date noted by your university to indicate when you
graduate, drop below part time status or withdraw from university. The
grace period on your loan begins on this date.
SMART
Sailor/Marine/American Council on Education Registry Transcript.
