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Glossary of Financial Aid Terms / Also Glossary of Loan Repayment Terms
Award Letter
A letter informing you of your eligibility for a state grant.
Campus-based Programs
Federal student aid programs, including Federal Perkins Loans, Federal
Supplemental Educational Opportunity Grants, and Federal Work-Study,
administered by colleges.
Enrollment Status
Determined by the number of credit hours for which you register. In most
cases, 12 credit hours or more is
Expected Family Contribution (EFC)
The results of a federal formula using the family's income and assets to
determine the expected contribution
Federal Direct Student Loan Program (FDSLP)
Low-interest loans for students and parents; includes the Federal Stafford
and PLUS loan programs. Loans are obtained through a student's school and repaid
to the federal government.
Federal Family Education Loan Programs (FFELP)
Low-interest loans for students and parents; includes the Federal Stafford
and PLUS loan programs. Loans are obtained from a private lender such as VSAC.
Loans through VSAC receive Vermont Value benefits.
Federal Pell Grant
The largest pool of federal grant money. You must apply for a Federal Pell
Grant, using the Free Application for Federal Student Aid (FAFSA), to be
considered for other forms of aid.
Financial Aid Award Notifications
Letters from the colleges to which you have applied for financial aid
informing you of your eligibility
Free Application for Federal Student Aid (FAFSA)
The document you use to apply for federal, state, and institutional
financial aid. All students must complete this application to be considered for
aid.
National Community Service
Community service program enabling eligible students to work in exchange for
a portion of their loans being forgiven or a portion of their higher education
or training being financed. For more information, call
Requests for Additional Information
Additional information, or verification of information reported on the FAFSA
or other documents, that colleges may request.
Scholarships
Gifts of money to students from state, federal, or private sources. While
state and federal grant programs are based on financial need, scholarships may
be based on a variety of factors, including need, academic
Special Circumstances
Extenuating family circumstances that were not addressed on your FAFSA, but
which you would like the colleges to consider in determining your eligibility
for aid. A letter of explanation, detailing events, expenses, etc., that warrant
special attention, should be sent to each office reviewing your application(s)
for aid.
Student Aid Report (SAR)
The official Federal Pell Grant notification you receive after your FAFSA is
processed.
Glossary of Loan Repayment Terms
Consolidation
You combine your eligible loans and lower your monthly payment by extending
repayment up to 30 years. You may consolidate your Federal Direct Loans.
Deferment
Your payments are postponed when you meet specific eligibility requirements.
Forbearance
Your payments are postponed for a short time during financial difficulty.
Graduated Repayment
Your payment starts low and increases over time.
Income-Sensitive Repayment
Your payment amount is based on your income and the amount you owe.
Level Repayment
You pay the same amount each month throughout repayment.
Reduced Payment Plan
Your payments are significantly lower during temporary financial difficulty.
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