What Does That Word Mean?

COA - Cost of Attendance

The total amount it will cost a student to go to school -- usually expressed as a yearly figure.  It is determined using rules established by law.  The COA includes tuition and fees; on-campus room and board (or a housing and food allowance for off-campus students); and allowances for books, supplies, transportation, loan fees, and miscellaneous and personal expenses. 

Default

Failure to repay your loan.  This can lead to legal action by the school, the lender, the state or the federal government to recover the money.

Delinquent

When at least one loan payment is late or missed.  Serious delinquency results in default.

Dependent Student

If you are considered a dependent student by the Department of Education*, parent financial resources will be considered when calculating financial aid.

*The FAFSA determines dependency from questions in Section 3 - it's not whether you reside with your parents or whether they claim you on their tax return.

EFC - Expected Family Contribution

The formula used to calculate your EFC is established by law and is used to measure your family's financial strength on the basis of your family's income and assets.  The EFC is used to determine your eligibility for federal student aid.

Forbearance

The permission to postpone, reduce, or extend loan payments because of serious economic hardship.

Grace Period

The time between leaving school and when payment is to begin on the loans.

Loan Counseling

Entrance & Exit Counseling that are required for federal student loan borrowers.  They can be done online at COCC.

MPN - Master Promissory Note

The binding legal document you sign when you get a student loan.  It lists the conditions under which you're borrowing and the terms under which you agree 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 you'll need to refer to it later when you begin repaying your loan.

Need - Financial Need

Need is the difference between your EFC and your school's cost of attendance. 

COA  LESS  (Expected Family Contribution + Other Resources) = Gross Need 
Gross Need LESS (Award – Other Resources) = Unmet Need 

The aid you have been awarded may not meet 100% of your gross need.  The unmet need plus the family contribution is the amount not covered by financial aid.

Origination Fee

A charge deducted from the loan to help cover the costs of making the loan.

PLUS Loan

A PLUS (Parent Loan to Undergraduate Student) Loan enables parents with good credit history to borrow money to pay the educational expenses of each child who is a dependent, undergraduate student enrolled at least half time.

SAP - Satisfactory Academic Progress

To be eligible to receive federal student aid, you must maintain satisfactory academic progress toward a degree or certificate.  You must meet your school's written standard of satisfactory progress.  You can check out the policy at COCC here: http://finaid.cocc.edu/Policies/Progress/default.aspx

SAR - Student Aid Report

A paper report mailed to you from the Department of Education after completing a FAFSA.  It is important to review your SAR when you receive it to make sure all of your information is correct and to provide any necessary corrections or additional information.

Subsidized Loan

This is a need-based loan.  The student will not be charged any interest before repayment begins.  The federal government pays (subsidizes) the interest on the loan while the student is in school (also during grace and deferment periods.

Unmet Need

The difference between a student's total cost of attendance and the student's total available resources, including financial aid.

Unsubsidized Loan

Interest accrues from the first disbursement until the loan is paid in full.  Student is responsible for the interest.  If the student allows the interest to accumulate, it will be added to the principal amount of the loan.