Glossary of Terms
Academic Year: the measure of the academic work to be accomplished by the student each year as defined by the University, which has two semesters that contain at least 30 weeks if instructional time in which a full-time student is expected to complete at least 24 semester credits.
Award Year: the period of time between fall term and the end of the following second summer session.
Accrued Interest: interest that will accumulate on an unpaid loan balance.
Borrower: person responsible for repaying loan that has agreed to the terms and signed a promissory note.
Campus-Based Programs: a collective term that refers to the Federal Supplemental Education Opportunity Grant (SEOG), Federal Work-Study programs, and Federal Perkins Loan.
Capitalizing Interest: adding unpaid, accumulated interest to the loan principal, increasing the total loan cost.
Central Processing System (CPS): the system receives your need analysis data. CPS calculates your official Expected Family Contribution (EFC).
Consolidation Loan/Direct Consolidation Loan: two categories of consolidation loans- FFEL Consolidation Loans - allow the borrower to combine different types and amount of federal loans to simplify repayment.
Cost of Attendance (COA): your anticipated expenses to attend Winston-Salem State University. Includes tuition, fees, housing, food, transportation, books, and supplies, personal expenses, and other costs, depending on individual choices.
Credit Balance: the amount remaining in your University account after payment of on campus charges.
Default: failure to repay a loan according to the terms of the promissory note. For a loan repayable in monthly installments, a loan is in default after 180 days of no payment.
Deferment: temporary postponement of loan payments for a limited period of time. Deferments, allowed for specific borrower activities, extend the loan repayment period by the length of the deferment period.
Delinquency: this occurs when payments are late or missed, as specified in the terms of the promissory note and the selected repayment plan.
Dependent Student: meet any one of the criteria as defined by the Federal Government: born after January 1, 1986, is not married, is an undergraduate, do not have legal dependents other than a spouse, is not an orphan or ward of the court (or were not a ward of the court until age 18); and is not a veteran. Dependent students must report their parent's income on their financial aid application (FAFSA).
Direct Loans: a federal loan programs established by the Student Loan Reform Act on 1993 that provides loans directly to students from the federal government at a variable interest rate. You pay an origination fee on the gross amount borrowed. Loans may be either need or non-need based.
Disbursement: the release of financial aid funds to individual student accounts; funds are disbursed when the student's financial aid file is complete and registration has been verified; when loan proceeds are paid by the University to the parent borrower.
Discharge: the release of borrowers from their obligations to repay their Direct Loans when they have met certain discharge requirements.
Disclosure Statement: statement of the actual cost of a loan, including the interest costs and the loan fee.
Direct Loan Servicing Center: the US Department of Education's agent contracted to collect Direct Loans and handle deferment, repayment options, and consolidations.
Expected Family Contribution (EFC): dollar amount that a family is expected to contribute to a student's education; determined by need analysis.
Entrance/Exit Interview: counseling sessions that borrowers attend before receiving their first loan disbursement and, again, before leaving school.
Free Application of Federal Student Aid (FAFSA): the federal form that must be completed to be considered for all federal student aid.
Federal Direct Loan Program: the William D. Ford Federal Direct Loan Program, (also, Direct Loan Program) is a federal program that provides loans to student and parent borrowers directly through the U.S. Department of Education; included is the Federal Direct Stafford Subsidized/Ford Loans, Federal Direct Stafford Unsubsidized/Ford Loans, Federal Direct PLUS Loans and Federal Direct Consolidation Loans.
Federal Pell Grant: a federal grant program for needy postsecondary students who do not have a bachelor's degree.
Federal Perkins Loans: low interest loans for undergraduate or graduate students. Priority is given to students with exceptional financial need as defined be Winston-Salem State University.
Financial Aid: financial assistance in the form of scholarship, grants, fellowships, employment opportunities and educational loans from federal, state and private sources.
Financial Aid Award Notice (FANN): a letter to you from Winston-Salem State University that list the type of and amount of aid offered and the terms and conditions of that aid.
Forbearance: an arrangement to postpone or reduce a borrower's monthly payment amount for a limited and specified period, or to extend the repayment period. The borrower is changed interest during forbearance.
Ford Federal Direct PLUS Loan: a loan for parents with good credit history who want to borrow for their dependent student.
Full-Time Student: an undergraduate student taking a minimum of 12 credits per term or graduate student taking a minimum of 9 credits per term.
Grants: education funds that do not require repayment from present or future earnings.
Grace Period: the period between the time borrowers leaves school or drop below half time studies and the time they must begin repaying their loans usually six or nine months, depending on the type of loan.
Half-time Student: an undergraduate or professional student taking at least 6 credits, or a graduate student taking a least 6 credits per term during the academic year.
Income: amount of money received from any or all of the following: waged, interest, dividends, sales or rental of property or services, business or farm profits, and certain welfare programs, disability, inheritance, gambling and contest winning, or retirement benefits and other types of taxable income.
Independent Student: meet any one of the criteria as defined by the federal government: born before January 1,1986 is married, is a graduate or professional student, have legal dependents other than spouse, are an orphan or ward of the court (or were a ward of the court until age 18); or a veteran. You must report only your own income and assets (and those of a spouse) when applying for financial aid. Parents of independent students are not eligible for Direct PLUS Loan.
Interest Rate: Cost paid to borrow money; may be fixed or variable.
Legal Dependent (for dependency override): a child or other person (other than spouse) who lives with and gets more than half of his or her support from the student and will continue to receive that supports during the school year.
Legal Guardian: a court appointed individual whose guardianship responsibilities include using personal financial resources to support the person in his or her charge.
Less than Half-Time Student: an undergraduate or graduate student taking less than 5 credit hours per a semester.
Loan Fee: an expense of borrowing deducted proportionately from each loan disbursement.
Loan Principal: the total sum of money borrowed.
Merit-based Aid: assistance that is awarded because of a student's achievements or talents in a particular area (e.g. academics or athletics).
Need: the difference between Winston-Salem State University cost of attendance and a student's (and family) ability to pay. Ability to pay is represented by the EFC.
Need Analysis: a system used to estimate a family's ability to pay for postsecondary education; one of the necessary steps in establishing a student's need for financial assistance.
Origination Fee: a fee charged by the federal government and deducted from the loan proceeds before disbursements to help reduce the cost of supporting low interest loans.
Over award: a situation in which the student's financial aid exceeds the calculated financial need. Federal student aid programs do not allow over awards.
Principal: amount a person borrows (which may increase as a result of capitalized interest) and the amount on which interest is paid.
Promissory Note: a legal and binding document signed by a borrower which included the terms and conditions for repayment of a loan.
Prepayment Schedule: a statement provided by the Direct Loan Servicing Center to the borrower that list the amount borrowed, the amount of monthly payments, and the date payments are due.
Satisfactory Academic Progress: the academic standard, as determined by Winston-Salem State University in compliance with federal regulations, which a student must meet to continue receiving financial aid.
Scholarships: educational funds that do not require repayment from present or future earnings and are usually awarded on the basis of merit.
Servicer: a company employed by the federal government to perform administrative tasks involved with loans.
Statement of Educational Purpose/Registration Compliance: a statement on the FAFSA in which students certify with their signature that they will use funds only for educational expenses and that they are registered with Selective Service, if required.
Student Aid Report (SAR): the notification to the student of the results of processing the FAFSA.
Three Quarter-time Student: an undergraduate student taking 9-11 credit per term.
Variable Interest: rate of interest on a loan that is tied to a stated index and change annually every July 1 as the index changes.
Verification: the process to confirm an individual student's application data. Students and parents must submit tax returns and other supporting document if asked.
Work-Study: state and federal employment programs that subsidize wages for needy students to help them pay for educational expenses.