Glossary

Academic Year
This is a measure of the academic work to be accomplished by the student. The University defines its own academic year, but the federal regulations set minimum standards for the purpose of determining Student Financial Aid awards. Unlike the award year, an academic year does not have to begin and end at the same time for all students.
Accrual Date
The day interest charges begin to be added to the loan balance.
Accruing Interest
The adding of interest to a loan amount.
Adjusted Gross Income (AGI)
Taxable income after all allowable adjustments are made.
Assets
Cash on hand – savings, trusts, stocks, bonds, other securities such as real estate, income-producing property, business equipment, and business inventory. Assets are used to determine expected family contribution (EFC).
Athletic Scholarship
A scholarship based in any degree on athletic ability.
Award Authority
The university department or program responsible for selecting the recipient of the scholarship, fellowships, or monetary award.
Award Notification
A letter notifying financial aid applicants of the assistance being offered. The letter specifies the type of aid offered and the amount offered. A student's rights and responsibilities and the conditions that govern the award are included with the award letter. The notification offers the student an opportunity to accept or reject the aid offered.
Award Year
A financial aid term consisting of fall semester, spring semester, Summer I and Summer II. The year crosses two fiscal years and two calendar years.
Borrower
The person who assumes legal obligations for the repayment of the loan principal plus interest. In some cases the borrower is the student, for instance, when a student is awarded a Federal Perkins or Federal Stafford Loan. In the case of PLUS loans the borrower is the parent or a graduate student.
Budget
The estimated cost of attendance (COA) for an institution usually includes tuition, fees, books, supplies, room and board, personal expenses, and transportation. Other expenses may be included depending on circumstances.
Citizen/Eligible Non-Citizen
A person is generally considered a legal citizen if they are born in the U.S.A.. are a child of a U.S. Citizen, or pass the requirements of the laws and regulations to establish citizenship. A person is generally considered a legally eligible non-citizen if he or she is: 1) a U.S. permanent resident and has an Alien Registration Receipt Card (I-551); 2) a conditional permanent resident (I-551C); or 3) an other non-citizen with an Arrival-Departure Record (I-94) from the U.S. Immigration and Naturalization Service (INS) showing any one of the following designations: "Refugee," "Asylum Granted," "Indefinite Parole," "Humanitarian Parole", or "Cuban-Haitian Entrant."
Consolidation
Combining two or more Federal Stafford or Perkins loans into one new loan that has a longer repayment term and a single monthly payment that is smaller than the sum of previous monthly payments. By consolidating eligible federal student loans and extending the repayment term ( up to 30 years, depending on the total loan amount), repayment can be easier. Consolidation can over time add a significant amount to the overall interest paid. Usually done in the student's last semester.
Cost of Attendance
The student’s cost of attendance includes not only tuition and fees, but also living expenses while attending school. The school uses guidelines established by federal regulation to determine the cost of attendance. A student’s cost of attendance is compared to the expected family contribution to evaluate the student’s need for financial aid.
Default
A borrower’s failure to repay according to the terms agreed upon when the promissory note was signed. Consequences of default are widespread. Assets, including Internal Revenue Service (IRS) refunds may be seized and the borrower’s credit record or history is negatively affected. Student loan borrowers cannot get out of default until they pay back their loan in full, sign new loan agreements, or reschedule their debt. If an individual is in default they are also ineligible for additional federal student aid, including grants and loans.
Deferment
An authorized period of time during which a student loan borrower may postpone making payments on the principal plus interest.
Dependency Status
A student’s dependency status is determined by guidelines established by the federal government and indicates to what degree the student has access to the parent’s Financial resources.
Dependent Student Status
For an individual to be considered your dependent, they must live with you, and you must provide them with more than half their financial support. Spouses do not count as dependents in the Federal Methodology.
Direct Loans
The William D. Ford Direct Student Loan Program is a federal program in which the school becomes the lending agency, and manages the funds directly, with the federal government providing the loan funds.
Direct Subsidized Loans
A Direct Subsidized Loan is awarded on the basis of financial need. The borrower will not be charged any interest before repayment begins or during authorized periods of deferment. The federal government subsidizes the interest during these periods.
Direct Unsubsidized Loans
A Direct Unsubsidized Loan is not awarded on the basis of need. The borrower will be charged interest from the time the loan is disbursed until it is paid in full. If the borrower allows the interest to accumulate, it will be capitalized – that is, that is the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount.
Disbursement
The process by which financial aid funds are made available to students for use in meeting educational and related living expenses. Funds may be disbursed directly to the student or applied to the student’s account.
Entrance/Exit Interviews
Counseling sessions borrowers are required to complete before receiving their first federal loan disbursement and prior to leaving school.
Estimated Financial Assistance (EFA)
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.
Expected Family Contribution (EFC)
The amount that a student and his or her parents can reasonably be expected to contribute toward college costs, computed according to federal guidelines and/or alternative guidelines. EFC is subtracted from the total cost of attendance to arrive at an estimate of a student’s unmet need. EFC may be divided into “parents’ contribution” (PC) and “student’s contribution (SC).
The Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. § 1232g; 34 CFR Part 99)
Is a Federal law that protects the privacy of a student's education record. The law applies to all schools that receive funds under an applicable program of the U.S. Department of Education.
Federal Direct Loan Programs (FDLP)
The collective name for the Direct Subsidized, Unsubsidized, and Direct Plus Loan Programs.
Federal Family Education Loan Program (FFELP)
Education loans provided by private lenders and guaranteed by the federal government. Subsidized and Unsubsidized Stafford Loans and Plus Loans are included.
Federal Methodology (FM)
The formulas according to which a student’s eligibility for Federal Title IV Funds is determined. The formulas take into account income, some assets, expenses, family size, and other factors.
Federal Pell Grant Program
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, a student may receive a Pell Grant while attending a post-baccalaureate teacher certificate program. For many students, Pell Grants provide a foundation of financial aid to which other aid may be added.
Federal Perkins Loan Program
A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. The school is the lender. The loan is made with government funds with a share contributed by the school. The borrower must repay the loan to the school.
Federal Stafford Loans
Federal Stafford Loans are made to students through two loan programs: Schools that participate in the Direct Loan Program allow their students to borrow directly from the federal government. Schools that participate in the Federal Family Education Loan Program allow private lenders to provide the funds.
Federal Supplemental Education Opportunity Grant (SEOG)
The SEOG is available to undergraduate students who demonstrate exceptional need, according to the results of the Free Application for Federal Student Aid.
Federal Work Study
Federal Work-Study is an award that allows a student to take a job that works around their class schedule. The student will receive a paycheck monthly for the hours they have worked. The student cannot earn more in the school year than their Federal Work-Study award amount. Earnings are not applied to the Student's bill and are generally used for incidentals, though the student may save their earnings for future college bills. Students must demonstrate financial need to be considered for this award.
Fellowship
Generally an amount of $500 or more paid for the benefit of a graduate student to aid in the pursuit of study or research. UNCW fellowships generally fall under either of the following groups:
~ Grant/contract supported fellowships are fellowships that are part of a larger grant/contracts, are awarded specifically for financial aid, and are subject to review and approval by the Office of Sponsored Programs.
~ All other fellowships are generally established through University Advancement, are supported through a signed donor agreement and are assigned an account number.
Financial Aid
Any amount paid or benefit provided toward a student's educationally-related expenses. Educationally-related expenses include: tuition and fees, room and board, books, travel expenses, dependent care, study abroad, expenses related to student's disability, personal expenses and miscellaneous expenses. If payment is made as a result of the individual's employment in a job ( e.g., Outstanding Student Employee Award), the payment is not considered financial aid.
Financial Aid Award
An offer of financial or in-kind assistance to a student attending a postsecondary educational institution. The award may be in the form of one or more of the following types of financial aid: repayable loans, a non-repayable grant and/or scholarship, and/or student employment.
Financial Aid Package
A combination of aid from several sources and/or several types. Typically a student receives a package that includes, both gift aid and self-help aid, some public and some private.
Financial Need
The difference between what it costs to attend a particular college and the amount that a student and his/her family can afford to pay towards those expenses. Sometimes also called “demonstrated financial need”. The amount that an applicant can be expected to contribute is measured according to standardized formulas. A student is generally eligible for aid equal to the amount of his/her financial needs, although an institution does not always have sufficient funds to meet full need. (See also Estimated Family Contribution, Federal Methodology, and Institutional Methodology)
Free Application for Federal Student Aid (FAFSA)
A form distributed and processed by the United States Department of Education, used in applying for all Federal Title VI student aid programs, including Pell Grants, Stafford Loans, and the campus-based programs (SEOG, Work-Study, and Perkins Loans). The FAFSA collects the information required to determine need and eligibility according to the Federal Methodology. It is widely available in high schools, postsecondary financial aid offices, and can be completed on the web at www.FAFSA.ed.gov. It may also be obtained by writing to the Federal Student Aid Information center, P.O. Box 84, Washington, D.C. 20044
General Education Development (GED) Certificate
A certificate students receive if they’ve passed a specific approved high school equivalency test. Students who don’t have a high school diploma, but who have a GED, may still qualify for federal student aid. A school that admits students without a high school diploma must make a GED program in the vicinity of the school available to these students and must inform them about the program. Students who pass an approved-to-benefit (STB) test may also be qualified. An applicant without a high school diploma, or its recognized equivalent, can be eligible for funds if she or he…. 1.) Passes an independently administered ATB test approved by the Department of Education and used for determining the student’s ability to benefit from postsecondary education. Or 2.) Enrolls in a school that participates in a process that has been both prescribed by the state in which the school is located and approved by the Department.
Grace Period
A specified period of time after a student leaves school or drops below half-time status during which he or she is not required to make payments on either principle or interest. The grace period is typically six to nine months, depending on the type of loan. The Federal Subsidized Stafford Loan, for example, has a six-month grace period.
Gross Income
Income before taxes, deductions and allowances have been subtracted.
Guarantor
A state, regional, or national organization that acts as an agent for the federal government in the administration and insurance of FFELP loans made by private lenders. Also called “guarantee agency’ or “guaranty agency”
Half time
Enrollment in only half of the number of hours per semester required for full-time enrollment status. At UNCW, full-time is 12 hours per semester, so half-time is 6 hours per semester. Most financial aid awards are adjusted proportionately with enrollment status, so that half-time means eligibility for only half of the award. Some scholarships and grants require full-time enrollment, whereas most loans require only half-time or higher enrollment for full awards.
~A student must be attending school at least half-time to be eligible to receive a Direct Loan or Federal Family Education Loan. Half-time enrollment is not a requirement to receive aid from the Federal Pell Grant, FSEOG, Federal Work-Study, or Federal Perkins Loan programs.
Higher One
The company responsible for administering refunds for UNCW students. Higher One mails a Higher One Seahawk card to each student admitted to UNCW. Students must follow the instructions to activate the card and indicate how they wish to receive their refund. Students may request a paper check, have the funds transferred to their personal bank account or open a Higher One Account.
Income
The amount of money received from employment (salary, wages, tips), profit from financial instruments (interest, dividends, capital gains) or other sources (child support, Social Security, pensions, disability).
Independent Students
For financial aid purposes, an independent student is one who is at least 24 years old as of January 1st, or is married, or has a legal dependent other than a spouse, or is a veteran of the U.S. armed Forces, or is a graduate or professional student, or is an orphan or ward of the court (or was a ward of the court until age 18). All other students are considered dependent. Parental refusal to provide support for a child’s education is not sufficient cause for the child to be declared independent.
Institutional Methodology (IM)
Formulas used by many colleges, universities, graduate and professional schools, and private scholarship programs to determine an applicant’s need and eligibility for their own private, non-federal student aid funds. While similar in some respects to the Federal Methodology (see above), the Institutional Methodology differs in others. For example, the IM may take home equity into account and includes a minimum expected contribution from the student, but also permits more generous treatment of medical/dental expenses, elementary, and secondary school tuition paid, and child support paid.
Interest
The fee charged to a borrower for the use of someone else’s money, computed as a percentage of what is borrowed. (For Stafford loans first disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent. For Stafford loans first disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable (adjusted annually on July 1, not to exceed 8.25 percent. Students are notified anytime the variable rate changes.)
ISIR
Institutional Student Information Report—This is an electronic record sent to the school of choice as a result of completing the Free Application for Student Financial Aid (FAFSA). See SAR for more information.
Legal Guardian
An individual appointed by the court to be a legal guardian of a person and to whom the court specifically requires use his/her own financial resources to support that person.
Loan Consolidation
A new loan that is created by combining the repayment of two or more student loans to reduce the amount of monthly payments and extend the loan repayment term.
Merit-Based Scholarship
A scholarship awarded primarily on the basis of the student's academic achievement, special talent, and/or community service.
Methodologies
Need analysis formulas used to determine eligibility for student aid. There are three financial aid methodologies; the Federal Methodologies, and the Simplified Methodologies (or Simplified Need Test).
Minimum Monthly Payment
The minimum amount a borrower must pay each month on each separate loan and credit-card account. Sometimes abbreviated as “MMP.” The amount of the minimum monthly payment is based on the total amount and the repayment term; on student’s loans, the MMP is usually $50 a month per loan.
Monetary Award/Prizes
Generally an amount less than $500 paid for the benefit of a student. Awards generally have not been established through written donor agreements with the university (Office of University Advancement).. Awards are often funded by departments through trust funds and include prizes (e.g., First Place Poetry Prize)
Need
The difference between cost of college attendance and a student’s (and the student’s parents’) ability to pay the cost: Cost of attendance – Expected family contribution = Financial need.
Need Analysis
The process that determines a student’s financial need by analyzing financial information provided by the student and his or her parents (or spouse, if applicable) on a financial aid form. The need analysis is the first step in applying for financial aid. All students must file a FAFSA (Free Application for Federal Aid) to apply for need-based federal financial aid programs. Some schools, particularly private colleges, also require students to fill out other forms ( see institutional methodologies) for aid funded by that college. For state financial aid programs, the FAFSA may or may not be the only form a student needs to submit. Applicants should always check with state agencies for other forms they may need to complete, such as the CSS/Financial Aid PROFILE at www.collegeboard.org**.
Need-based Aid
Financial aid that is awarded based on a student’s financial situation. Most government’s student financial aid is need based. Need-based aid can be awarded in the form of grants, loans, or work-study pay.
Need-Based Scholarship
A scholarship awarded primarily on the basis of the student's financial need.
Non-Taxable Income
All income received that is not reported to the Internal Revenue Service (IRS) or is reported but excluded from taxation. Such income would include but is not be limited to any untaxed portion of Social Security benefits, welfare payments, untaxed capital gains, interest on tax-free bonds, IRA’s, Keogh, dividend exclusion, military and other subsistence and quarters allowances, retirement contributions and child support.
Origination fee
A processing fee charged by the lender of the loan (the federal government in the case of Direct Loans) that is deducted from the proceeds of the loan before the loan disburses; partially offsets the administrative cost of the Federal Loan Programs.
Outside Scholarship
A scholarship awarded by an outside agency that selects the recipient and the agency does not specifically set aside funding for UNCW students.
Overaward
Generally, any amount of campus-based aid or Federal Family Education Loan that exceeds the student’s financial need or Cost of Attendance (PELL Grant is always the first award when adding up sources of funds in determining an over-awarded, and is awarded based upon cost of attendance and need, and hence is never the reason for an overaward).
Prepayment
Paying off some or all of a loan in order to reduce the amount of interest that must otherwise be paid.
Promissory Note
The binding legal document a borrower signs when borrowing a student loan. It lists the conditions under which the borrower is borrowing and the terms under which the borrower agrees to pay back the loan. It will include information on how interest is calculated and about deferment and cancellation provisions. It’s very important to read and save this document because the borrower will need to refer to it later when beginning repayment of the loan.
Refund
The amount due a student who withdraws or fails to pursue his/her course of study when funds have been paid to the institution. When an institution determines that a student is due a refund, if that student has received financial aid funds, a portion of the refund must be allocated to the program(s) from which the student received aid.
Repayment schedule
Description of the borrower’s monthly payments, interest rate, total repayment obligation, due dates, and length of time before repaying the loan.
Satisfactory Academic Progress (SAP)
To be eligible to receive federal student aid, a student must maintain satisfactory academic progress toward a degree or certificate. The student must meet the school’s written standard of satisfactory progress. The student should check with the school to find out about its standard.
Scholarship
Generally an amount of $500 or more paid for the benefit of an undergraduate student to aid in the pursuit of studies. UNCW scholarships generally fall under either of the following groups
~ Grants/contract-supported scholarships are scholarships that are part of a larger grant/contract, are awarded specifically for financial aid, and are subject to a review and approval by the Office of Sponsored Programs
~ All other scholarships are generally established through University Advancement, and are supported through a signed donor agreement and are assigned an account number.
Scholarships Awarded by Off-Campus Agencies
Scholarships awarded by off-campus agencies that have designated funding for UNCW students. Generally, these agencies select the recipients and the funds are not university-controlled.
Selective Service Registration
If required by law, a student must arrange to register with the Selective Service to receive federal student aid. The requirement to register applies to males who were born on or after January 1, 1960, are at least 18 years old, and are not currently on active duty in the U.S. Armed Forces. (Citizens of the Federal States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau are exempt from registering.)
Student's Contribution (SC)
The amount that a student can reasonably be expected to contribute toward his or her own educational expenses, based on federal and/or alternative guidelines. (See also “Dependency status” and Estimated Family Contribution.
Subsidized Loan
The government pays the interest on the loan while the student is in school, during the six-month grace period, and during any deferment period. Subsidized loans are awarded based on financial needs and may not be used to finance the family contribution. The Perkins Loan and the Subsidized Stafford Loan are subsidized loans.
Tuition
The amount of money colleges charge for instruction and use of facilities. Room, Board, and fees are charged in addition to tuition, so the terms “tuition” and “college cost” are not synonymous.
Untaxed Income and Benefits
From Worksheet A/B (page 8 of the paper FAFSA). Worksheet A/B collects information about certain untaxed income and benefits. Any income or benefits already reported elsewhere on the application are not include on Worksheet A/B. includes: deductible IRA and/or Keogh payments, untaxed Social Security payments, benefits received on behalf of dependents, underpayments and overpayments of benefits, housing allowances, other untaxed income and benefits, and cash payments. For descriptions of these items click here.
Verification
A procedure whereby the school checks the information the student reported on the financial aid application, usually by requesting a copy of the tax returns filed by the student, and if applicable, the student’s spouse and/or parents(s). Many schools conduct their own form of verification. In addition, the school must verify students selected through the federal central processing system.

UNC Wilmington | 601 S. College Road, Wilmington NC 28403 | 910.962.3000 | About this Site | Copyright Notice | Feedback | Page maintained by:  B. Shelton [ sheltonb AT uncw DOT edu ]