Glossary

ACADEMIC YEAR:

• A period of 32 weeks of instructional time (16 weeks each semester) during which time a full-time student is expected to complete at least 24 semester hours.

ACCRUAL DATE:

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

AWARD NOTIFICATION:

• The official document, issued by the Office of Financial Aid, which lists all the financial aid awarded to the student.

CAPITALIZATION:

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

CDV (Child of Disabled Veteran):

• Undergraduate or Graduate Indiana residents who are children of a parent with a service connected disability verified through the Veteran's Administration. Awards applied only to tuition & fees, and currently covers approximately 75% of tuition charges through Summer 2000. Will cover approximately 100% of tuition charges beginning Fall 2000..

CITIZEN/ELIGIBLE NON CITIZEN:

• You must be one of the following to receive federal student aid:
• U.S. Citizen.
• national (includes natives of American Samoa or Swain’s Island).
• permanent resident with an I-151 or I-551 (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”
• “Indefinite Parole and/or Humanitarian Parole”
• “Cuban-Haitian Entrant, Status Pending”
• “Conditional Entrant” (valid only if issued before April 1, 1980)
• “Other eligible non citizen with a Temporary Resident Card (I-688)”

Or you can be eligible based on the Family Unity Status category with an approved I-797 (Voluntary Departure and Immigrant Petition). If you have only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), you aren't eligible for federal student aid. If you're in the U.S. on an F1 or F2 student visa only, or on a J1 or J2 exchange visitor visa only, you can't get federal student aid. Also, persons with G series visas (pertaining to international organizations) are not eligible for federal student aid.

NOTE: Citizens and eligible noncitizens may also receive loans from the FFELP and Direct Loan Programs at participating foreign schools.

Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, and Palau are eligible only for Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), or Federal Work-Study (FWS). These applicants should check with their financial aid administrators for more information.

CONSOLIDATION:

COST OF EDUCATION (COE):

• 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, on-campus room and board (or a housing and food allowance for off-campus students), an allowance for books and supplies, transportation, and miscellaneous expenses. Certain other items may be added at the discretion of the Office of Financial Aid, such as dependent care expenses. Your COE can be affected by your enrollment status.

DEFAULT:

DEFERMENT:

DISBURSEMENT (payment of a student's financial aid to their PUC account):

ENTRANCE/EXIT INTERVIEWS:

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

EXPECTED FAMILY CONTRIBUTION (EFC):

• An amount, determined by a formula established by the Federal Government, 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.

FAMILY SHARE OF EXPENSES:

• The family share of expenses represents an estimate of your family’s capacity to absorb, over time, the costs of education. It is not a prediction of how much cash you have on hand, a value judgment about how much a family should be able to draw from current income or a measure of liquidity. It is not the amount you must pay directly to the University, but, rather, the family’s share of the total cost of education.

FAFSA (Free Application for Federal Student Aid):

• The federal financial aid application. This must be completed each year by all students who wish to be considered for financial aid at the Purdue University Calumet.

FEDERAL DIRECT LOAN PROGRAM:

• Education loans provided by the federal government and disbursed by Purdue University Calumet. Subsidized and Unsubsidized Stafford Loans and Parent PLUS loans are included in this program.

FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP):

• Education loans provided by private lenders and guaranteed by the federal government. Subsidized and Unsubsidized Federal Stafford Loans and Parent PLUS loans are included in this program.

FEDERAL PERKINS LOAN:

• A low interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Awarded by the Office of Financial Aid.

FINANCIAL AID SPECIALIST:

• A representative of the Office of Financial Aid who provides administrative support in the day to day operations of the office, reviews financial aid applications, and assists students and parents in all aspects of the financial aid process.

FINANCIAL AID PACKAGE:

• The total financial aid a student is awarded. 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 AID TRANSCRIPT (FAT):

• A document required from each college/institution previously attended by the student regardless of whether the student applied for or received aid. Must be received by the college/institution where the student is currently applying for aid. Note: Required of all students who transfer to Purdue Calumet after the start of the academic year or semester/term.

FINANCIAL NEED:

• The difference between the Cost of Attendance and the Expected Family Contribution. This amount is used in determining what your aid package will be.

FIRST TIME BORROWER:

• If the student is a first time borrower AND has not earned academic credits at Purdue University Calumet, Federal Regulations state the first disbursement must be delayed 30 days from the first day of class.

FSEOG (Federal Supplemental Educational Opportunity Grant):

• Need-based Federal grant. Students who are enrolled full-time or part-time may be eligible. First consideration is given to Pell Grant recipients.

FWS (Federal Work-Study):

• Provides jobs for undergraduates and graduate students with financial need allowing them to earn money to help pay educational expenses. Salary will be at least the current federal minimum wage, but it may be higher.

FORBEARANCE:

GRANT:

• A type of financial aid award based on need that is not required to be repaid by the student.

GRACE PERIOD:

GUARANTY AGENCY:

GUARANTY FEE:

INFORMATION/DOCUMENT REQUEST LETTER:

• Letter from the Office of Financial Aid requesting documents or information to complete the student's financial aid file. Also known as a Tracking Letter.

INTEREST RATE:

• 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 October 1, 1992, all federal education loans made to new borrowers have variable interest rates.

LENDER:

• A financial institution (bank, savings and loan, or credit union) that provides funds for students and parents to borrow as educational loans.

LOAN 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.

LOAN DEFAULT:

• Failure to repay a student loan according to the terms agreed upon when the student signs 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.

LOAN 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 lease 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 the student borrowed and the amount borrowed. Contact the lender for additional details.

LOAN DISBURSEMENT (payment of a student's financial aid to their PUC account):

LOAN 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.

LOAN 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.

LOAN GUARANTY AGENCY:

LOAN GUARANTEE FEE:

• An insurance premium deducted from the borrower’s loan proceeds prior to disbursement and paid to the guaranty agency that insures the loan. By law the fee cannot exceed 3 % of the loan amount.

LOAN ORIGINATION FEE:

• A fee charged by the federal government and deducted from loan proceeds before disbursement to partially offset administrative costs of the Federal Family Education Loan Program (FFELP). By law the fee cannot exceed 1% of the loan amount.

LOAN PRINCIPAL:

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

MASTER PROMISSORY NOTE:

• The legal document borrowers sign when they receive a loan. The note 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.

NEEDS ANALYSIS:

• A process of reviewing a student’s aid application to determine the amount of financial aid a student is eligible to receive. Completing a needs analysis form is the required first step in applying for most types of financial aid.

NEW BORROWER:

• A borrower who has no outstanding (unpaid) loan balances as of the date they sign the promissory note for a specific educational loan. New borrowers may be subject to different regulations than borrowers who have existing loan balances.

ORIGINATION FEE:

PARENT LOANS FOR UNDERGRADUATE STUDENTS (PLUS)

• Loans that enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half-time (minimum of 6 credit hours) each semester.

PELL GRANT:

• A need-based Federal grant awarded to students who are pursuing their first undergraduate degree. Pell Grants may also be available for part-time study.

PRINCIPAL:

REFUND CHECK:

• A reimbursement of funds issued to the student when the sum of the loan(s), grant(s), and scholarship(s) awards are greater than the fee bill. These checks are disbursed by the Bursar’s Office approximately two weeks after classes begin.

REPAYMENT SCHEDULE:

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

SAR:

SATISFACTORY ACADEMIC PROGRESS:

• To be eligible to receive federal student aid, you must be maintaining satisfactory academic progress toward a degree or certificate. Each school has a written standard of satisfactory progress based on federal regulations that you must meet. Your status is reviewed at the end of each semester.

SCHOLARSHIPS:

• Awarded to both undergraduate and graduate students based on financial need, academic merit, or a combination of both. Does not have to be repaid.

SECONDARY MARKET:

• An organization established to purchase education loans from lenders. This allows lenders to replenish capital to fund new loans. Selling loans is a common practice among lenders and does not affect the terms and conditions under which the loan was originally made.

STAFFORD SUBSIDIZED LOAN:

• A Federal loan which is awarded to a student on the basis of need. If the student qualifies for a subsidized loan, the federal government pays interest on the loan (“subsidizes” the loan) until the student begins repayment and during authorized periods of deferment thereafter.

STAFFORD UNSUBSIDIZED LOAN:

• A non-need based Federal Loan (formerly called SLS, or Supplemental Loan for Students). If the student qualifies for an unsubsidized loan, the student will be charged interest from the time the loan is disbursed until it is paid in full.

STUDENT AID REPORT (SAR):

• A form sent to the student after submitting their FAFSA to the Federal Processor. The SAR shows the information that was reported by the student on the FAFSA and indicates if a student is Pell Grant eligible. To request duplicate reports call (800) 433-3243.

VERIFICATION:

• A process by which a student’s FAFSA data is reviewed to ensure accuracy. Students are selected for verification by the Federal Processor, or in some instances by the institution. If selected for Verification, the student will need to provide additional documentation to the Office of Financial Aid.