Award Letter – Financial aid offer from the university.
Budget – The sum of all direct and indirect education expenses including housing, mandatory fees, tuition, and personal expenses.
Deferment – Abstaining from making loan payments while in school.
Disbursement – Payment of financial aid funds to a student account.
Endorser – Individual who co-signs a loan for a borrower.
FAFSA (The Free Application for Federal Student Aid) – Application that students must submit to be considered for federal, state, and institutional aid.
Grace Period – A predetermined amount of time in which a borrower is in good standing but does not need to make repayment on loans, and subsidized loans do not accrue interest.
Grant – Need-based form of federal, state, or institutional financial aid that does not have to be repaid.
Loan Servicer – The agency that collects repayment of federal or private loans from student borrowers.
Master Promissory Note (MPN) – An electronic contract borrowers must sign certifying that they will make loan repayments.
Principal – The total amount borrowed on a loan, excluding any interest accrued.
Scholarship - Financial assistance awarded based on merit or talent that does not need to be repaid.
Subsidized Loan – Money borrowed from the federal government which requires financial need, does not accrue interest until after leaving school or falling below half time, and must be repaid in full.
Unsubsidized Loan – Money borrowed from the federal government which accrues interests immediately and must be repaid in full.
Verification – Process in which the university requests additional information from a student or parent to confirm the accuracy of the information provided in the FAFSA.