GLOSSARY OF TERMS

ACADEMIC YEAR:

A period of at least 30 weeks of instructional time during which a full-time student is expected to complete at least 24 semester or trimester hours, or at least 36 quarter hours, at an institution that measures program length in credit hours; or at least 900 clock hours at an institution that measures program length in clock hours.

ACCRUAL DATE:

The day interest charges on an educational loan begins to accrue.

AWARD LETTER:

The official document, issued by the Office of Student Financial Planning, which lists all the financial aid awarded to the student. While award letters vary among institutions, the letter generally lists terms of the aid awarded.

CAPITALIZATION:

The process of adding unpaid interest to the principal balance of an educational loan, thereby increasing the total amount to be repaid.

CITIZEN/ELIGIBLE NON-CITIZEN:

You must be one of the following to receive federal student aid:

U.S. Citizen
U.S. national (includes natives of American Samoa or Swain's Island)
U.S. permanent resident with an I-551 or I-551C (Alien Registration Receipt Card)

If you're not in one of these categories, you must have an Arrival Departure Record (I-94) from the U.S. Immigration and Naturalization Service (INS) showing one of the following designations:

Refugee
Asylum Granted
Parole
Cuban Haitian Entrant, Status Pending

CONSOLIDATION:

A loan program that allows a borrower to combine various educational loans into one new loan. By extending the repayment period (up to 30 years depending on the loan amount) and allowing a single monthly payment, consolidation can make loan repayment easier for some borrowers.

COST OF ATTENDANCE (COA):

The total amount it should cost a student to go to school--usually expressed as a yearly figure. The cost of education covers tuition and fees, and allowance for books and supplies, room and board, transportation, and miscellaneous expenses. Your COA can be affected by your enrollment status.

DEFAULT:

Failure to repay a student loan according to the terms agreed to when you signed a promissory note. If you default, your school, the organization that holds your loan, the state, and the federal government can all take action to recover the money, including notifying national credit bureaus of your default. Your wages and/or tax returns may be garnished, and you will no longer be eligible to receive federal financial aid.

DEFERMENT:

An authorized period of time during which a borrower may postpone principal and interest payments. Deferments are available while borrowers are in school at least half time, enrolled in a graduate fellowship program or rehabilitation training program, and during periods of unemployment or economic hardship. Other deferments may be available depending on when and what you borrowed. Contact your lender for additional details.

DISBURSEMENT:

The release of loan funds to the school for delivery to the borrower.

ENTRANCE/EXIT INTERVIEWS:

Counseling sessions borrowers are required to complete before receiving their first loan disbursement and again before leaving school.

EXPECTED FAMILY CONTRIBUTION (EFC):

An amount, determined by a formula established by Congress, that indicates how much of your families financial resources should be available to help pay for school. The EFC is used in determining your eligibility for financial aid.

FAFSA (Free Application for Federal Student Aid):

The federal aid application. This must be completed by all student who wish to be considered for financial aid at Mercer University.

FEDERAL PELL GRANT:

For undergraduate students, first baccalaureate degree only. Eligibility is based on federal methodology. The amount of the award ranges from $200 to $4,050, subject to Congressional appropriations, and will be reduced for students who enroll less than full time.

FINANCIAL AID COUNSELOR:

A representative of the Office of Student Financial Planning that reviews a student's application and awards aid, and helps the student in all aspects of the financial aid process.

FINANCIAL AID PACKAGE:

The total financial aid a student receives. Federal and non-federal aid such as grants, loans, work-study, and scholarships are combined in a "package" to help meet the student's need.

FINANCIAL NEED:

The difference between the Cost of Attendance and the Estimated Family Contribution. This amount is your total eligibility for aid from all sources, and is used in determining what your aid package will be.

FORBEARANCE:

An authorized period of time during which the lender agrees to temporarily postpone a borrower's principal repayment obligation. Interest continues to accrue and usually must be paid during the forbearance period. Forbearance may be granted at the lender's discretion when a borrower is willing to repay their loan but is unable to do so.

GRANT:

A type of financial aid award based on need or merit that is not repaid by the student.

GRACE PERIOD:

The period between the time a borrower leaves school or drops below half-time and the time they are obligated to begin repaying their loans - usually six or nine months, depending on the type of loan.

INDEPENDENT STUDENT

Students must meet one of the following criteria in order to be considered an independent student if for the 2005-2006 year:

· You were born before Jan. 1, 1982.
· You are married.
· You're enrolled in a graduate or professional educational program.
· You have legal dependents, other than a spouse who live with you and receive more than half their support from you.

· You have children that receive more than half their support from you.
· You're an orphan or ward of the court or both parents are deceased.
· You're a veteran of the U.S. Armed Forces.

If you claim to be an independent student, you may be asked to submit proof before you can receive any federal financial aid. If you have unusual circumstances that do not fit the above criteria and feel that you should be classified as an independent student, please schedule an appointment to talk with a Financial Aid Counselor.

INSTITUTIONAL STUDENT INFORMATION REPORT

The Institutional Student Information Report (ISIR) is the name for the electronic version of SARs delivered to schools by the FAFSA processors.

INTEREST:

A fee charged for the use of borrowed money. Interest is calculated as a percentage of the principal loan amount. The rate may be constant throughout the life of the loan (fixed rate) or it may change at specified times (variable rate). As of Oct. 1, 1992, all federal education loans made to new borrowers have variable interest rates.

NEEDS ANALYSIS:

A process of reviewing a student's aid application to determine the amount of financial aid a student is eligible for. Completing a needs analysis form (i.e. the FAFSA) is the required first step in applying for most types of financial aid.

ORIGINATION FEE:

A fee charged by the federal government and deducted from loan proceeds before disbursement to partially offset administrative costs of the William D. Ford Federal Direct Loan Program.

PRINCIPAL:

The amount borrowed. Interest is charged on this amount, and guaranty and origination fees will be deducted prior to disbursement.

PROMISSORY NOTE:

The legal document borrowers sign when they get an education loan. It lists conditions under which the money is borrowed and the terms under which borrowers agree to repay the loan with interest. Borrowers should keep the borrower copy of their promissory notes until the loans are fully repaid.

REPAYMENT SCHEDULE:

Discloses the borrower's monthly payment, interest rate, total repayment obligation, due dates and length of time for repaying the loan.

SATISFACTORY ACADEMIC PROGRESS:

Students must meet and maintain their school's standards of satisfactory academic progress toward a degree or certificated in order to receive federal student aid. Most school's satisfactory academic progress standards contain both a qualitative and quantitative measure.

STUDENT AID REPORT (SAR):

A form sent to the student after submitting the FAFSA to the federal processor. The SAR shows the information that was processed and indicates Pell Grant Eligibility. For duplicate reports call (800) 433-3243

VERIFICATION:

A process of review to determine the accuracy of the information on a student's financial aid application. Students are selected by the Federal Processor.

WILLIAM D. FORD FEDERAL DIRECT SUBSIDIZED LOAN:

A need-based loan on which the interest is paid by the federal government during the in-school, grace, and deferment periods. Repayment of principal begins after the grace period.

WILLIAM D. FORD FEDERAL DIRECT UNSUBSIDIZED LOAN:

A non need-based loan in which interest is not paid by the federal government. Borrowers are responsible for interest on all unsubsidized loans from the date the loan is disbursed. Repayment of principal begins after the grace period.

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