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Glossary
Alternative loans: Commercial, non-federal loans intended for students who need extra money to help cover educational costs not met by their other financial aid. They involve a credit check and interest rates are generally higher than the government-sponsored educational loans, but still may be a better option than other kinds of loans available to families.
Authorized payer: Someone the student has given a username and password to grant access to make online payments on the student account.
Budgeted cost of attendance: The annual average expense budget, which includes cost of tuition, mandatory fees, room and board, books and supplies, transportation, miscellaneous/personal expenses, and average loan fees. This amount is the maximum amount of financial aid a student may receive.
Credit-balance check: When a payment, including financial aid, on the student account overpays the amount owed, SFS will return these funds to the student either by paper check in the mail or electronically by direct deposit.
Deferment/forbearance: The borrower’s right to defer or forbear monthly payments on a student loan; borrowers should check with lenders to determine eligibility.
Direct deposit: Funds transferred electronically to the student’s personal banking account.
Expected family contribution (EFC): Financial contribution that is expected to be able to assist in the student’s education costs; it is determined by the federal methodology need-analysis formula approved by U.S. Congress. The EFC includes the parent contribution and the student contribution, and depends on the student’s dependency status, family size, number of family members in school, taxable and nontaxable income and assets, and a number of other variables reported on the Free Application for Federal Student Aid (FAFSA).
Family Educational Rights and Privacy Act (FERPA): The Family Educational Rights and Privacy Act (FERPA) is a federal law that limits access to student information, such as the offer of financial assistance and student account details. Students may grant access to their financial aid and student account information to individuals who they feel should legitimately know this information.
Financial need: The difference between the cost of attendance and EFC. Grants, need-based loans, work study, and scholarships count toward meeting a student’s financial need.
Free application for federal student aid (FAFSA): Form used to apply for all need-based aid, including loans, grants, work study, and non-need-based federal loans. There is no fee to file the FAFSA, and it must be completed each year to reapply.
Grace period: The period of time after graduation or dropping below half time before student loan repayment begins.
Grant: A type of financial aid based on financial need that the student does not have to repay.
Interest rate: Percentage rate added to the loan. Need-based loan interest is subsidized, does not accrue while enrolled at least half-time, during some periods of deferment, and during the grace period. Non-need-based loan interest accrues upon disbursement.
Loan: A type of financial aid which must be repaid, with interest. Interest rates and terms vary; review MPN for details.
Master promissory note (MPN): The binding legal document that must be signed by the student borrower before loan funds are disbursed by the lender. This document is always filled out with the lender providing the loan and is the signed application for that loan. The promissory note states the terms and conditions of the loan, including repayment, interest rate, deferment policy, and cancellations. The student should keep this document until the loan has been repaid.
Offer of financial assistance: The complete collection of grants, scholarships, loans, and work-study awards from all sources (federal, state, institutional, and private) offered to a student to enable them to attend SPU as determined from their FAFSA. Note that initially PLUS loans are not considered part of the offer of financial assistance, since this financing option is available to the student/family to help them meet the EFC, but will be included after approval and awarding of the loan.
Online payments: Through Online Payments, students and authorized payers can pay charges on their student account online by e-check or credit card through a contracted service called Quickpay. (QuickPay does not accept VISA.) Any payment made toward a student’s account will be reflected on the account the following business day.
Outside scholarships: A scholarship that comes from sources other than the school and the federal or state government.
Payment plans: SPU offers two different payment plans that divide a student’s remaining charges after all financial aid has paid onto the student account into three equal payments per quarter. The first option, Option B: Combined Installment Plan, establishes equal payments for the entire academic year. The second option, Option C: Three-Installment Plan, establishes equal payments for a specific single quarter. If a student is enrolled in Option C, they will only be on the plan for the specific quarter in which they are approved.
Priority deadlines: The dates at which students must file the FAFSA to ensure that they will be considered for the widest variety of aid.
Satisfactory academic progress (SAP): A student must make this in order to continue receiving federal aid. If a student fails to maintain an academic standing consistent with SPU’s SAP policy, they are unlikely to meet the school’s graduation requirements. SPU’s SAP policy is as follows:
- Complete (letter grade A, B, C, D, or P) at least 80 percent of all attempted credits each academic year.
- Maintain at least a 2.0 cumulative grade point average after the second year of enrollment, and by the end of each subsequent quarter.
Scholarship: Funds for educational costs, granted to a student because of need, merit, or affiliation. These funds do not need to be repaid. SPU scholarships have individual renewal criteria.
Student account: The service through which all charges from the University to an enrolled student are charged and by which funds can be paid on behalf of the student.
Verification: The process by which information on the FAFSA is substantiated. Students may be selected at random, by the federal government, to submit tax documents and other documents to the University.
Work referral: A form that notifies an employer of a student’s work study eligibility. These forms are available in SFS. |
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