AwardYear: 1995-1996 EnterChapterNo: EnterChapterTitle: Introduction to the 1995-1996 SFA Handbook SectionNumber: SectionTitle: Glossary PageNumbers: 11-14 ACADEMIC YEAR -- This is a measure of the academic work to be accomplished by the student. The school defines its own academic year, but federal law and regulations set minimum standards for the purpose of determining SFA awards. For instance, the academic year for an undergraduate program must include at least 30 weeks of instructional time, during which a full-time student must complete at least 24 semester or trimester hours, 36 quarter hours, or 900 clock hours. Unlike the award year, an academic year does not have to begin and end at the same time for all students. One student might enroll as a full-time student in September and complete one academic year of study in May, while another student might enroll as a half-time student in January and take twice as long to complete an academic year. AWARD YEAR -- The award year begins on July 1, and extends to June 30 of the next year. Funding for the Federal Pell Grant and campus-based programs is provided on an award-year-basis -- thus a students is paid out of funds designated for a particular award year, such as the 1995-96 award year. BASE YEAR -- For need analysis purposes, the base year is the calendar year preceding the award year. For instance, 1994 is the base year used for determining eligibility in the 1995-96 award year. CAMPUS-BASED PROGRAMS -- The Federal Perkins Loan, Federal Work-Study, and Federal Supplemental Educational Opportunity Grant programs are collectively called the "campus- based" programs, because the funds are administered directly by the school's financial aid office and awarded to students under federal guidelines. CENTRAL PROCESSING SYSTEM (CPS) -- The Department's processing facility for application data, currently located in Iowa. The CPS receives student information from the FAFSA processors, calculates the student's official Expected Family Contribution (EFC), and returns the student's information to the FAFSA processor, which prints the Student Aid Report (SAR). COST OF ATTENDANCE (also known as Cost of Education) -- The student's cost of attendance includes not only tuition and fees, but the student's living expenses while attending school. The cost of attendance is estimated by the school, within guidelines established by federal law. The cost of attendance is compared to the student's EFC to determine the student's need for aid. DEFAULT -- Failure to repay a loan in accordance with the terms of the promissory note. (The definition given in the regulations for the guaranteed student loan programs specifies a time frame for default--see Chapter Ten, Section Four.) DEPARTMENT (or ED) -- Abbreviation for the U.S. Department of Education. ESTIMATED FINANCIAL ASSISTANCE (EFA)-- For the FFEL programs, the amount of student financial aid the student can expect from federal, state, school, or other sources, including grants, loans, or need-based work programs. The school must report this estimate when certifying an FFEL loan application. EXPECTED FAMILY CONTRIBUTION (EFC) -- The amount that the student's family is expected to contribute towards the cost of attendance, usually based on the family's income and assets. The EFC is used to award aid for the Federal Pell Grant, campus-based, and Federal Stafford Loan programs. FAFSA--See Free Application for Federal Student Aid. FAFSA PROCESSORS -- Agencies that distribute and process the Free Application for Federal Student Aid under contract with the Department. More information about the FAFSA processors can be found in the "Counselor's Handbook". FEDERAL FAMILY EDUCATION LOAN (FFEL) programs -- The Federal Stafford Loan and Federal PLUS Loan programs. Funds for these programs are provided by private lenders, and the loans are guaranteed by the federal government, through state agencies. FINANCIAL NEED -- The difference between the student's cost of attendance and the Expected Family Contribution (EFC). FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)-- A student must file a FAFSA to apply for aid from any of the SFA programs, including the FFEL programs. The FAFSA is printed and distributed by several application processing systems under contract with the U.S. Department of Education. INSTITUTION -- A postsecondary educational institution. In this "Handbook", we will use the terms "school" and "institution" interchangeably. NEED ANALYSIS -- The process of analyzing the household and financial information on the student's financial aid application and calculating the amount the family can be expected to contribute to educational costs. For the SFA programs, the need analysis system is defined by law and results in a number known as the Expected Family contribution. OVERAWARD -- Generally, any amount of campus-based aid or an FFEL program loan that exceeds the student's financial need. (The overaward concept does not apply to the Federal Pell Grant Program.) OVERPAYMENT -- Any payment of a Federal Pell Grant, FSEOG, Federal Perkins Loan, or SSIG that exceeds the amount for which the student was eligible, whether the overpayment is the result of an overaward, an error in the cost of attendance or the Expected Family Contribution, or any other eligibility criterion, such as citizenship or enrollment in an eligible program. PROFESSIONAL JUDGMENT -- While the method for determining student's need for federal student aid is defined in the law, the law does give the financial aid administrator the flexibility to make individual adjustments based on the administrator's professional judgment, in three different ways: to override the student's dependency status (from dependent to independent), to adjust the components of the student's cost of attendance, and to adjust the data elements used to calculate the student's Expected Family Contribution. These adjustments must be made on a case-by-case basis, and the reasons for the adjustment must be documented in the student's file. Please see the "Counselor's Handbook" for more information on how to make adjustments. PROMISSORY NOTE -- A legal document that the borrower signs to get a loan, in which the borrower promises to repay the loan, with interest, in specified installments. The promissory note will also include any information about the grace period, deferment or cancellation provisions, and the student's rights and responsibilities with respect to that loan. RESOURCES -- Other student aid that must be taken into account to prevent an overaward in the campus-based programs, as defined in the regulations for the campus-based programs. SCHOOL -- A postsecondary educational institution. In this "Handbook", we will use the term "school" and "institution" interchangeably. SFA PROGRAMS -- The programs administered by the Student Financial Assistance Programs within the U.S. Department of Education; namely, Federal Pell Grants, Federal Direct Loans, Federal Family Education Loans, Federal Supplemental Educational Opportunity Grants, Federal Work-Study, Federal Perkins Loans, State Student Incentive Grants, Byrd and Douglas Scholarships. STUDENT AID REPORT (SAR) -- The federal "output document" printed by a FAFSA processor and mailed to the student. The SAR contains the family's financial and other information as reported by the student on the FAFSA. The student's eligibility for aid is indicated by the Expected Family Contribution printed on the front of the SAR. Schools that participate in the Electronic Data Exchange and other services offered by the Department can receive the information on the SAR through these services. (See the "Counselor's Handbook" for more information about the SAR.) VERIFICATION-- For students selected through the application processing system, schools are required to verify the accuracy of the information reported on the FAFSA, using tax returns and other documentation. If a student is selected for verification, an asterisk will be printed next to the student's Expected Family Contribution (on the Student Aid Report). Many schools choose to verify additional students other than just those selected through the application processing system. (See the "Verification Guide" for more information.) |