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Glossary

SOME COMMONLY USED FINANCIAL AID TERMS


1040-1040A-1040EZ - federal tax returns.

Academic Progress Report - a report showing all classes taken and grades received.

Appeal - a student's request that a decision be changed or repealed.

Attempted - all the courses you have registered for at MCC.

Award Letter - letter sent to you by the Financial Aid Office explaining your financial aid award.

Capitalization - The practice of adding unpaid interest charges to the principal balance of an educational loan, thereby increasing the size of the loan. Interest is then charged on the new balance, including both the unpaid principal and the accrued interest. Capitalizing the interest increases the monthly payment and the amount of money you will eventually have to repay. If you can afford to pay the interest as it accrues, you are better off not capitalizing it.

Census Date - The date on which your enrollment level is checked to determine the amount and the funds authorized for the quarter. Payment is based on your enrollment as of that date. 

Cost of Attendance - The cost of attendance (COA), also known as the "budget", is the estimated total annual amount it will cost you to go to school. This amount includes tuition and fees, room and board, and allowances for books and supplies, transportation, and personal and incidental expenses. MCC has different standard budget amounts for students living off-campus, with parents, and in-state or out-of-state.


Credit hours - the number of hours assigned a class.


Cumulative GPA - the sum of all grades from the first quarter of attendance.

Default - Failure to repay a loan according to the terms of the promissory note. A loan is in default when the borrower fails to pay several regular installments on time (i.e., payments overdue by 270 days) or otherwise fails to meet the terms and conditions of the loan. Note - if you are in default, you may want to check out the Department of Education's webpage regarding loan default.

Deferment - Deferment occurs when a borrower is allowed to postpone repayment of the loan. If you have a subsidized loan, the federal government pays the interest charges during the deferment period. If you have an unsubsidized loan, you are responsible for the interest that accrues during the deferment period. You can still postpone paying the interest charges by capitalizing the interest, which increases the size of the loan. Most federal loan programs allow students to defer their loans while they are in school at least half time. If you don't qualify for a deferment, you may be able to get a Forbearance. You can't get a deferment if your loan is in default.

Delinquent - Any loan that is 59 days or less delinquent is reported to the credit bureaus as current. Any loan that is 59 or more days delinquent is reported as delinquent. Loans that are 270 days (or more) delinquent are considered to be in default.

Developmental Classes - courses designed to help students learn the basics of math, reading and writing. Identified by the "0" used as the first number in the course number. Example: MAT 095 - Developmental Math.

Direct Loans - Inclusive name for all federal loan programs. Includes the Federal Direct Stafford and Federal Direct PLUS loan programs.

Direct PLUS Loan - Federal loan made by commercial institutions that is designed to help parents meet the cost of a college education for their dependents.

Documentation - proof given by the student to support a statement.


EFC - Expected Family Contribution. The amount that the U.S. Department of Education has determined to be your/your family's expected contribution toward your educational expenses. It is based on the information provided on the FAFSA.

ESL - English as a Second Language.


Eligible Program - A course of study that leads to a degree or certificate and meets the requirements of the U.S. Department of Education.

FAFSA - Free Application for Federal Student Aid. The basic federal application for financial aid.

Federal Pell Grant - A Federal Pell Grant, unlike a loan, does not have to be repaid. Generally, Pell Grants are awarded only to undergraduate students who have not earned a bachelor's or professional degree. (A professional degree is usually earned after earning a bachelor's degree in a field such as medicine, law, or dentistry.) In some cases, you might receive a Pell Grant for attending a post-baccalaureate teacher certificate program. Get more information about Pell Grants at the Department of Education website.

Federal Work-Study – This program provides part-time employment for students who demonstrate financial need as determined by the Free Application for Federal Student aid (FAFSA).  Positions are available both on and off campus.  A separate application process is required.  In order to be considered for work-study students must have submitted their FAFSA by April 1, 2010 and be in Good Standing for Financial Aid Standards of Progress. 

Financial Aid - Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), Nebraska Scholarship Act Grant (NSG), Federal Work-Study (FWS), Federal Direct Stafford Loan, Federal Direct PLUS Loan, Board of Governors Tuition Grant (BGTG), and Board of Governors Graduating Senior Scholarship, Board of Governors GED Scholarship, Presidential Scholarship.

Financial Aid Package - The total amount of financial aid you are eligible to receive.

FSEOG - Federal Supplemental Educational Opportunity Grant. An additional federal grant for the most needy students.

FWS - Federal Work Study. A federal program to assist students through work approved by the financial aid office.


First-Time Borrower - A student who has not successfully completed the first year of a program of study in which he or she is currently enrolled and who has not previously received a Federal Stafford loan.

Forbearance - A borrower who is willing but unable to make payments, and who does not qualify for a deferment, may request a forbearance from the lender. Forbearance allows temporary cessation of payments or smaller payments for a specific length of time. The lender may grant forbearance of principal, interest or both. The borrower is always responsible for repayment of accrued interest charges. The borrower can make inteest only-payments, or the interest will be capitalized (added on to the principal). You can't receive a forbearance if your loan is in default.

GED - General Education Development Certificate. High school equivalency document.

GPA (Grade Point Average) - is the average of all your grades and is computed by the College. Ex - A = 4, B = 3, C = 2, D = 1, F = 0. Look for your GPA on your transcript or Academic Progress Report.

Grace Period - The grace period is a short time period after a student graduates, leaves school for a reason other than graduation or falls below half time enrollment during which a student is not required to begin repaying their student loans. The grace period is for six months.

Guarantee Agency - The guarantee agency (also called the guarantor) oversees the student loan process, including the approval of the loan, and the issuance of a guarantee to the lender that the student loan will be repaid if the borrower defaults (does not repay the loan). A guarantee agency also provides public information about student loans, keeps permanent records of all loans made through it, enforces state and federal rules, and collects on defaulted loans.

Loan Consolidation - An entirely new loan which combines the repayment of two or more student loans, reducing the amount of monthly payments and extending the loan term.

Master Promissory Note (MPN) - The loan application. A legally binding document, signed by the borrower, listing the terms and conditions of borrowing and repayment of the loan.

Maximum Credit Limit - the maximum number of credit hours you may take to finish your program of study and still receive financial aid.

New Student - a student who registers for a class at MCC for the very first time.

Origination Fee - A fee paid to the federal government to help run the Federal Stafford loan programs.

Passing Grades - A, B, C, D, P, R.

Probation - A period of time when the new student is given a second chance to achieve the appropriate standards of progress.

Student Aid Report (SAR) - The document sent to you by the central processor as a result of a completed FAFSA.


Standards of Academic Progress (SAP) - minimum achievement in grades and attendance in class which the student must have to be eligible for financial aid.

Verification - One in three Free Application for Federal Student Aid (FAFSA) forms is selected for verification. Verification is a random process that requires the Financial Aid Office to collect information from students to “verify” what was submitted on the FAFSA. It does not mean that you did anything wrong or are being singled out for any particular reason. It is a process to make sure that students did not make any mistakes that could impact their eligibility. If you receive a notice that you are selected for verification, submit all of the requested documents in a timely manner to expedite the completion of your file. Once verification is complete, students are issued an Eligibility Notice for the entire award year which outlines their eligible program funding.

For more detailed descriptions of specific federal grants and loans, refer to the Federal Student Guide

 
 
 
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