Financial Aid A to Z Glossary

Academic RecordAcademic information kept on file by the school. This record includes transcripts of grades, test scores, and related academic materials.
Accrued InterestThe interest that accumulates on the unpaid principal balance of a loan.
ACT (American College Testing Program)A nonprofit agency that designs and administers tests used by college and university admission offices. The ACT tests students’ ability in English, mathematics, reading, and reasoning.
Admission TestA standardized test used in the admission process to predict the likelihood of a student’s success in college (See ACT and SAT).
AP (Advanced Placement Tests)A standardized test designed for students who have completed college-level work in high school. AP tests are given in specific subject areas and are used to determine if a student may gain advanced standing and/or college credit.
ApplicationThe process students must follow to submit required forms and materials for admission to a college or university.
APR (Annual Percentage Rate)The interest maintained on a loan for a one-year period.
Articulation AgreementAn agreement between a two-year community college and a four-year college, that guarantees a graduate of the two-year school admission to the four-year school.
Bachelor’s Degree Also called a baccalaureate degree.A four-year degree for study in specific subjects. A Bachelor of Arts (BA) usually requires a foreign language; a Bachelor of Science (BS) includes more science and math, and a Bachelor of Fine Arts (BFA) emphasizes fine and applied arts.
CapitalizationThe addition of unpaid accrued interest to the principal balance of a loan, which increases the total outstanding debt.
CertificateRecognition provided to a student for completion of short-term vocational or career training programs, usually a year or less in length.
CIS (Career Information Service)The Oregon CIS is a computer program that lists information about careers, postsecondary educational training programs, and scholarships. This program is available in many high school counseling centers in Oregon and is updated annually.
Class RankA student’s approximate standing in his or her graduating class. Rank is based on grade point average and presented either in “percentiles” (such as “upper fifth”) or numerical order (such as 72nd in a class of 410).
College Admission CounselorA professional educator employed by a college or university to assist students with the admission process, exploration of educational options, and the transition from high school to postsecondary education.
College CatalogA publication developed by a college or university to promote and present information about its campus, academic programs, student life, costs, and other related information.
College Fair or (College Night)A program organized to allow high school students and their parents and other prospective postsecondary students to meet and talk with representatives from different colleges and universities.
College GuidesPublications that include profiles of colleges and universities and can be used as part of the college exploration process.
College Preparatory CoursesHigh school courses that provide students with the knowledge and skills required to do college-level study.
College VisitOn-site visit by student to a college or university campus to observe first-hand the academics, student life, and related campus features. Students may visit independently or as part of an Open House.
CollegeA postsecondary educational institution where students study to earn two- or four-year undergraduate degrees.
Community CollegesPublic educational institutions that offer certificate programs (one year) and associate degrees (two years). Students may transfer from a community college to a four-year school.
Credit HourA unit of academic credit that often represents one hour of class time per week for a period of study (semester, quarter, etc.).
Deferred AdmissionThe practice by some colleges of allowing an accepted student to postpone enrollment for one year.
DiplomaA document issued by a school, college, or university to students who have met coursework and graduation requirements for a degree.
DisbursementA transaction in which the school releases financial aid funds to a student’s account.
ElectiveAn optional course that a student may take to meet total graduation requirements but that is not required for the student’s program of study.
ETS (Educational Testing Services)ETS is a private nonprofit organization that provides information about college and graduate school admissions and placement tests.
Expected Family Contribution (EFC)The dollar amount that a family is expected to pay toward a student’s educational costs. This calculation is based on family earnings, assets, number of children in college, and size of family reported on a student’s FAFSA and calculated by the US Department of Education’s Central Processing System.
Extracurricular ActivityAny school activity, such as athletics, drama, or music, that offers the student the opportunity to complement his or her classroom experiences.
FAFSA (Free Application for Federal Student Aid)The federal application form that students must complete in order to apply for virtually all types of financial aid: Pell Grants, State Grants, Institutional Grants, Tuition Waivers, Work Study, and Loans.
Federal Perkins LoanA federal loan program that carries a low interest rates and may be offered by a college as part of a student’s financial aid package.
Direct Stafford LoanThis federal student loan is financed by the U.S. Department of Education and funded by the U.S. Treasury. In some cases, the loan is subsidized, meaning that the federal government pays the interest while the student is in school.
Fee WaiverStudents may qualify to have fees for a college application and/or an SAT/ACT admission test deferred if they can show proof of financial need, such as eligibility for the school free lunch program. See your high school counselor.
Financial Aid (or Assistance)Any financial award given to a student. It may be in the form of a grant, scholarship, work-study job or loan.
Financial NeedThe difference between the student’s educational costs and the Expected Family Contribution.
Free Application for Federal Student Aid (FAFSA)See FAFSA.
GPA (Grade Point Average)An average of the student’s academic achievement in grades for a specific time period. An accumulated GPA is the average over an entire school year.
Graduate StudentA student who has already received a bachelor’s degree and is working toward a Master’s or Doctoral degree.
Graduation RequirementsStandards set by the school or state for awarding a high school diploma or a college certificate or degree.
GrantAn outright financial gift for college costs, usually based on financial need. A grant is a form of financial aid that does not have to be paid back.
Independent InstitutionA nonprofit educational institution that is not funded by public taxes. Tuition costs are the same whether the student lives in that state or is a resident of another state.
InterviewFace-to-face conversation (individual or group) between a prospective student and the admission representative(s) of a college or university.
Liberal ArtsA course of studies in college that provides a well-rounded education in the arts, sciences, and the humanities as well as career courses.
LoanMoney borrowed to pay for college expenses. Loans must be repaid, usually with interest.
Loan ConsolidationCombining two or more education loans into a new loan with a new payment schedule and interest rate.
Loan DefaultThe failure to repay a loan in accordance with the terms of the promissory note. For federal student loans, default occurs after a delinquency exists for 270 days on an account.
Loan DefermentAn approved temporary suspension of loan payments based on certain events and criteria.
Loan DelinquencyThe failure to make scheduled monthly loan payments when they are due.
Loan ForbearanceA temporary suspension of loan payments due to a financial hardship, during which interest continues to accrue.
Loan Grace PeriodThe period (usually six months) after a student graduates, leaves school, or drops below half-time enrollment and before student loan payments must begin.
Loan InterestThe rate, based on the total amount owed, that is associated with borrowing money.
Loan Promissory NoteA legal and binding contract signed between the lender and the borrower that states that the borrower will repay the loan as agreed upon in the terms of the contract.
MajorThe program of study in which students concentrate their coursework, time, and attention.
MinorA subject of academic study requiring less intense specialization than a major.
Open AdmissionSome colleges offer admission to all students who apply. Such colleges usually have extensive programs designed to provide remedial or developmental help to students who enroll with academic deficiencies.
OSAC- Oregon Student Access Commission (formerly Oregon Student Access Commission)The state agency in Oregon that oversees a growing number of scholarships and financial aid programs.
OUS (The Oregon University System)The state office that oversees Oregon’s public 4-year colleges and universities: EOU, OHSU, OIT, OSU, PSU, SOU, UO, and WOU.
Direct PLUS Loan for ParentsA federal student loan for parents who wish to borrow on behalf of their dependent child. Loan funds come from the federal government, and repayment begins 60 days after the loan funds are fully disbursed. A credit check is required to determine eligibility.
Private LoanA student loan offered by a private bank or credit union. Typically such loans have more restrictive terms than federal student loans, including higher interest rates and cosigners.
PostsecondaryAfter graduation from high school (secondary school). Colleges, universities, and other institutions of higher education are often referred to as “postsecondary institutions.”
PrerequisiteA course required before taking another course ( i.e. French 101 would normally be required before taking French 102).
Proprietary InstitutionA for-profit school often specializing in technology-related fields or trades such as beautician or barber.
PSAT/NMSQT (Preliminary Scholastic Aptitude Test/National Merit Scholarship Qualifying Test)The PSAT/NMSQT is a practice test designed to prepare high school juniors for the SAT and is used in the awarding of National Merit Scholarships. Colleges do not often use the PSAT scores as admission criteria.
Public InstitutionA school that is tax supported. Tuition costs are less for students who live in the same state as the school.
RecommendationA written assessment of a student’s aptitudes, abilities, and interests. Recommendations are usually written by teachers, counselors or employers and are used by colleges and universities in the admission process.
Regular DecisionA term that describes a traditional college application process in which an institution reviews most of its applications prior to notifying the majority of its candidates.
Rolling AdmissionA term that describes an application process in which an institution reviews applications as they are received and offers decisions to students as applications are reviewed.
SAT (Scholastic Aptitude Test)A standardized admission test used by college and university admission offices to determine a student’s success in college, based on the student’s English, mathematics, reading, and reasoning skills.
ScholarshipAn award of financial aid that typically does not have to be paid back. A scholarship is usually awarded to students who demonstrate or show promise of high achievement in an area such as academics, athletics, or a special discipline.
ServicerAn entity that enters into a contract with a school or a lender, such as the US Department of Education or a bank, to help it maintain loan records and student accounts.
Standardized TestsTests such as the ACT and SAT that provide college admission officers with a comparative standard for evaluating a student’s academic aptitude and likelihood of successes in college.
Student Aid Report (SAR)The form a student receives from the US Department of Education after filing a FAFSA. The SAR summarizes all the information the student provided on the FAFSA and notifies the student of his/her eligibility for federal student aid. It usually contains the student’s Expected Family Contribution (EFC). SARs are sent electronically to students who file their FAFSAs online.
Subsidized LoanA student loan awarded on the basis of financial need, which is determined by the FAFSA. If you qualify for a subsidized loan, the federal government pays interest on the loan (subsidizes the loan) until repayment begins and during authorized deferments.
The College BoardA non-profit organization, whose members include counselors, admission officers, college faculty, and financial aid officers. They sponsor many tests, including the SAT and Advanced Placement tests, education services, and materials connected with the college admission process.
Title IV CodesA postsecondary school code number used on the FAFSA. The applicant designates which schools he or she is applying to for admission. These are different from the college codes used for the SAT and ACT tests.
TOEFL (Test of English as a Foreign Language)A test given worldwide by the Educational Testing Service to determine a student’s ability to function in an English-speaking classroom environment. The test is used for undergraduate, as well as graduate, admission.
TranscriptThe official record of a student’s high school or college coursework and grades. A transcript is usually required as part of the college admission process.
TuitionThe cost for attending classes at a college, university, or vocational school. Tuition does not include room and board.
TutoringAssisting a student with some aspect of his or her schooling, such as mathematics or language skills. Tutoring goes beyond the attention given to the student in a regular classroom setting.
Undergraduate DegreesTwo-year (Associate’s) or four-year (Bachelor’s) degrees.
Undergraduate StudentA student who has not yet received a bachelor’s degree.
UniversityAn institution, which may be the same as a college, but that usually offers both graduate and undergraduate degrees, as well as research facilities.
Unsubsidized LoanA student loan for which the student is responsible for paying the interest that accrues from the date the fund are disbursed to the date the loan is paid in full, regardless of the student’s enrollment status.
Vocational/Technical EducationA program of study designed to train students for a particular occupation, business, or trade.
Wait ListA term used by institutions to describe a process in which the institution does not initially offer or deny admission, but extends to a candidate the possibility of admission in the future.
Work StudyA financial aid program that allows a student to work on-campus or with approved off-campus employers to earn money to pay for college expenses. Federal Work-study is funded by a federal grant to the school; the school funds campus work-study.