GLOSSARY OF TERMS

Here are some terms that will help you in your Financial Aid quest.

Academic Common Market
The Academic Common Market (ACM) is a tuition savings agreement among 16 southern states that assists students whose majors are not available in their home state. The program is coordinated by the Southern Regional Education Board (SREB).

The ACM, an SREB program for 25 years, provides West Virginia students the opportunity to attend colleges in one of fourteen southern member states and pay in-state tuition when:

• The student is a West Virginia resident
• The student's major is not available at a West Virginia public institution
• The student's major is offered by a participating institution in an SREB member state and the institution agrees to make it available through the ACM.
• The student is accepted into the program at the participating institution

How Does It Work?

If your major is not available at a public college or university in West Virginia and you have been accepted in a program of study offered in the ACM by a participating institution, you may pay the in-state tuition rate of that institution.

Who Can Participate?

Students who are residents of one of the 16 participating states are eligible.

In Addition To West Virginia, Which States Participate?

Alabama, Arkansas, Delaware, Florida (graduate programs only), Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas (graduate programs only), and Virginia.

Which Schools Participate?

Many, but not all, public institutions in the 16 states offer programs of study in the ACM. Only public schools participate and a few institutions offer limited participation (for example, Clemson University (SC), Georgia State University, and the College of William and Mary (VA) offer only selected graduate level programs of study).

Are All Majors at Participating Institutions Available in the ACM?

No, participating institutions select the majors they will offer. However, participating institutions will sometimes agree to add a new program of study to the ACM upon request by an interested student.

Academic Year
This is a measure of academic work to be accomplished by a student. A school defines its own academic year, but federal statute and regulations set minimum standards to determine federal financial aid awards. For instance, the academic year must be at least 30 weeks of instructional time in which a full-time student is expected to complete at least 24 semester or trimester credit hours, 36 quarter credit hours, or 900 clock hours.

Acceptance Form
The written acknowledgment by the student of the receipt of an award letter. The form usually provides for acceptance of offered aid, possible declination of all or part of the package, and some means of requesting an appeal, if that is desired, to modify the award. Frequently, acceptance letters and award letters are combined into a single document.

Adjusted Gross Income (AGI)
All taxable income as reported on a US income tax return.

Assets
Cash on hand in checking and savings accounts, trusts, stocks, bonds, other securities; real estate (excluding home), income-producing property, business equipment, and business inventory. Considered in determining expected family contribution (EFC) under the regular need analysis formula.

Award Notification
Students awarded any type of financial assistance will receive an Award Notification Letter. The acceptance form must be signed and returned to the Office of Student Financial Aid by the date specified.

Award Year
An award year begins on July 1 of one year and extends to June 30 of the next year. Funding for Federal Pell Grants and campus-based programs is provided on the basis of the award year--for example, a student is paid out of funds designated for a particular award year.

Budget
The estimated cost of attendance for a student at an institution: usually includes tuition, fees, books. supplies, room, board, personal expenses, and transportation. Other expenses may be included

Campus-Based Programs
Term commonly applied to those US Department of Education federal student aid programs administered by institutions of post-secondary education. Includes: Federal Perkins Loan, Federal Supplemental Educational Opportunity Grant (FSEOG), and Federal Work-Study (FWS).

Capitalizing Interest
Adding unpaid accumulated interest to the loan principal. Capitalizing interest increases the principal amount of the loan and, therefore, the total cost of the loan.

Central Processing System (CPS)
The computer system to which the student's need analysis data is electronically transmitted by the FAFSA processor or MDE. The Central Processing System performs database matches and calculates the official Expected Family Contribution (EFC) and sends out the Student Aid Report (SAR).

Citizen/Eligible Noncitizen
A student must be one of the following to receive federal student aid:

• - U.S. citizen
• - U.S. national (includes natives of American Samoa or Swain's Island)
• - U.S. permanent resident who has an I-151, I-551, or I-551C (Alien Registration Receipt Card)

If a student is not in one of these categories, he or she must have an Arrival-Departure Record (I-94) from the U.S. Immigration and Naturalization Service (INS) showing one of the following designations:

• - "Refugee"
• - "Asylum Granted"
• - "Indefinite Parole and/or Humanitarian Parole"
• - "Cuban-Haitian Entrant, Status Pending"
• - "Conditional Entrant" (valid only if issued before April 1, 1980)
• - Other eligible noncitizen with a Temporary Resident Card (I-688)

Or a student can be eligible on the basis of the Family Unity Status category with an approved I-797 (Voluntary Departure and Immigrant Petition).

If a student has only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), he or she is not eligible for federal student aid.

If a student is in the U.S. on an F1 or F2 student visa, or on a J1 or J2 exchange-visitor visa only, he or she can't get federal student aid. Also, persons with G series visas (pertaining to international organizations) are not eligible for federal student aid.

Citizens of the Federated States of Micronesia, the Marshall Islands, and the Republic of Palau are eligible for Federal Pell Grants, Federal Supplemental Educational Opportunity Grants, or Federal Work-Study only. These applicants should check with their schools' financial aid administrators for more information.

Collection Agency
A business organization that accepts, from schools and lenders, loan accounts that have become delinquent or are in default, and attempts to collect on those accounts. A fee is charged for the service.

Commercial Lender
A commercial bank, savings and loan association, credit union, stock savings bank, trust company, or mutual savings bank.

Consolidation Loan
There are two categories of consolidation loans--Federal Family Education Loan (FFEL) Program Consolidation Loans and Direct Consolidation Loans. Both allow the borrower to combine different types and amounts of federal student loans to simplify repayment. A consolidation loan pays off the existing loans; the borrower then repays the consolidation loan.

Cost of Attendance
A student's cost of attendance includes tuition and fees, room and board expenses while attending school, and allowances for books and supplies, transportation, loan fees (if applicable), dependent care costs, costs related to a disability, and other miscellaneous expenses. In addition, reasonable costs for a study-abroad program and costs associated with a student's employment as part of a cooperative education program may be included. The cost of attendance is determined by the school, within guidelines established by federal statute. The cost of attendance is compared to a student's Expected Family Contribution (EFC) to determine the student's need for aid.

Default (Direct Loan, Federal SLS, Federal PLUS, or Direct PLUS Loan)
The failure of a borrower to make an installment payment when due, or to meet other terms of the promissory note under circumstanced where the Secretary of Education or the pertinent guarantee agency finds it reasonable to conclude that the borrower no longer intends to honor the obligation to repay.

Defaulted (Federal Perkins Loan)
A loan for which the borrower failed to make an installment payment when due and such failure persisted (not cured by either payment or other appropriate arrangements). The Secretary of Education considers a loan discharged in bankruptcy not to be in default.

Deferment of Loan
Period during which the repayment of the loan is suspended because the borrower meets certain eligibility requirements.

Delinquency
This occurs when payments are late or missed, as specified in the terms of the promissory note and the selected repayment plan.

Dependency Status
Students are classified as either dependent (requiring parent financial information) or independent (requiring only the student/spouse financial information).

An Independent Student is a student who has attained age 24, or who has not attained 24 but:

• is an orphan
• is a ward of the court
• is a veteran
• is married or is a graduate or professional student
• has legal dependents other than a spouse,
• or presents documentation of other unusual circumstances demonstrating independence to the student financial aid administrator

If you have extenuating circumstances other than those stated above, speak with a financial aid associate before completing the Request for Change in Dependency Status form below.

Request for Change in Dependency Status

Direct PLUS (Parent Loan)
Long-term loans made available to parents of dependent students. The government provides funding. Interest rates are linked to 52-week Treasury bill rates, but may not exceed 9%. May be used to replace EFC.

Direct Subsidized and Direct Unsubsidized Loan Program
Long-term, low interest loans administered by the Department of Education and institutions. the government is the funding source. Variable interest rates are not to exceed 8.25%. Direct Unsubsidized Loans can be used to replace EFC.

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.

Discharge (cancellation)
The release of borrowers from their obligations to repay their Direct Loans. Borrowers must meet certain requirements to be eligible for discharges: if the borrower dies, or becomes totally and permanently disabled, or in certain cases if the borrower files for bankruptcy, or the school either closes or falsely certifies a student's loan.

Disclosure Statement
Statement explaining specific terms and conditions of student loans, such as interest rate, loan fees charged, gross amount borrowed, and so on. Disclosure statements must accompany each loan disbursement.

Educational Benefits
Primarily federal funds awarded to certain categories of students (veterans, children of deceased veterans or other deceased wage earners, and students with physical disabilities) to help finance their post-secondary education regardless of their ability to demonstrate need in the traditional sense.

Electronic Student Aid Report (ESAR)
The electronic version of the Student Aid Report is recieved by the school from the Central Processing System.

Eligible Program
A program of education of training which complies with the procedures established in regulations governing the Title IV Programs. The eligibility of a program determines whether a student in that program can receive federal student aid programs.

Enrollment Verification
This free self-service option is based on an agreement between Shepherd University and the National Student Loan Clearinghouse (NSLC), which already provides enrollment and degree verification for Shepherd University as well as for most colleges and universities nationwide.

Log on to RAIL
Click on "Student Services and Financial Aid"
Click on "Student Records"
Click on "Request Enrollment Verification"
Click on "Request Enrollment Verification for (your name)". (This step will send you to another secure website.)
Click on "Obtain An Enrollment Certificate"

Entrance Interview
Required when a student borrows money from the Direct Loan Subsidized and Unsubsidized Program. Take the Entrance Interview electronically at the Direct Loans website.

Exceptional Need
An eligibility criterion in the FSEOG and Federal Perkins Loan programs. Exceptional need for FSEOG is defined in statute as the lowest expected family contributions at an institution. The law does not define the term for the Federal Perkins Loan Program.

Exit Interview
Required when a student having previous Direct Loans (Subsidized or Unsubsidized) either withdraws completely from school or graduates. Take the Exit Interview electronically at the Direct Loans website.

Expected Family Contribution (EFC)
The amount, determined by a formula Congress established, that a student's family is expected to contribute toward the cost of attendance. It is determined for the purposes of the federal SFA programs. The EFC is printed on the front of a Student Aid Report (SAR) or on an Institutional Student Information Record (ISIR).

When you apply for federal student aid, your answers to certain questions will determine whether you're considered dependent on your parents or independent. If you are considered dependent on your parents, you must report their income and assets as well as your own. If you are independent, you must report only your own income and assets (and those of your spouse, if you're married).

Students are classified as dependent or independent because federal student aid programs are based on the idea that students (and their parents or spouse, if applicable) have the primary responsibility for paying for their postsecondary education. Students who have access to parental support (dependent students) should not receive need-based federal funds at the expense of students who do not have such access (independent students).

• You're an independent student if at least one of the following applies to you:
• you were born before January 1, 1976;
• you're married;
• you're enrolled in a graduate or professional educational program (beyond a bachelor's degree);
• you have legal dependents other than a spouse;
• you're an orphan or ward of the court (or were a ward of the court until age 18); or
• you're a veteran of the U.S. Armed Forces ("veteran" includes a student who attended a U.S. military academy who was released under a condition other than dishonorable).

If you claim to be an independent student, your school may ask you to submit proof before you can receive any federal student aid. If you think you have unusual circumstances that would make you independent even though none of the above criteria apply to you, talk to your aid administrator. He or she can change your status if he or she thinks your circumstances warrant it based on the documentation you provide. But remember, the aid administrator won't automatically do this. That decision is based on his or her judgment, and it's final--you can't appeal it to the U.S. Department of Education.

Federal Student Employment Program
The Federal Student Employment Program provides jobs for undergraduates and graduate students who need financial aid. It gives students a chance to earn a part of their educational expenses. The institutional aid office may assign recipients to employment on campus or with non-profit public and private agencies. Eligibility for student employment assistance and the amount each student may earn under this program is determined by the aid officer. A participant will be paid at least the current Federal minimum wage.

To apply for student employment, the student and/or parents should complete the Free Application for Federal Student Aid (FAFSA). In a few weeks, the student will receive a Student Aid Report (SAR) which will indicate whether or not the student is eligible for Federal student employment.

Financial Aid Package
The total amount of financial aid a student receives. Most types of need and non need-based aid such as grants, loans, and work are listed on an award letter. Generally, the award letter gives students the opportunity to accept or decline the aid offered.

Financial Aid Transcript (FAT)
Form used by postsecondary institutions to collect data about any financial aid awards a student received at other educational institutions.

Financial Need
The difference between a student's cost of attendance (COA) and the Expected Family Contribution (EFC).

Free Application for Federal Student Aid (FAFSA) and Renewal FAFSA
The application filled out and filed by a student that collects household and financial information used by the federal government to calculate the Expected Family Contribution (EFC).

Grace Period
Period of time that begins when a loan recipient ceases to be at least half-time and ends when the repayment period starts. Loan principal need not be paid, and generally, interest does not accrue during this period.

Grant
A type of financial aid that does not have to be repaid; usually awarded on the basis of need, possibly combined with some skills or characteristics the student possesses.

Half Time
At schools measuring progress by credit hours and semesters, trimesters, or quarters, half-time enrollment is at least six semester hours or quarter hours per term. Note that schools may choose to set higher minimums than these.

Independent Student
A student who has attained age 24, or who has not attained 24 but:

• is an orphan
• is a ward of the court
• is a veteran
• is married or is a graduate or professional student
• has legal dependents other than a spouse,
• or presents documentation of other unusual circumstances demonstrating independence to the student financial aid administrator

Loan Fee
An expense of borrowing deducted proportionately from each loan disbursement. The loan fee charged for Direct Subsidized and Unsubsidized Loans is 4% of the amount you borrow.

Need Analysis
The process used by a college to evaluate an applicant's financial resources and determine how much the student or family can pay toward the cost of the education.

Nursing Student Loans (NSL)
Loans available to nursing students attending approved nursing schools offering a diploma, associate degree, baccalaureate, or graduate degree in nursing.

Overaward
Generally, any amount of federal financial aid that exceeds the student's financial need. The overaward concept does not apply in the Federal Pell Grant Program.

Overpayment
Any payment of a Federal Pell Grant, FSEOG, or SSIG that exceeds the amount for which a student was eligible. An overpayment may be the result of an overaward, an error in the cost of attendance or Expected Family Contribution (EFC), or a student not meeting any other eligibility criterion, such as citizenship or enrollment in an eligible program.

Packaging
The process of combining various types of student aid (grants, loans, scholarship, and employment) to attempt to meet a student's need.

Parents' Contribution
A quantitative estimate of the parents' ability to contribute to postsecondary educational expenses.

Pell Grants
The Pell Grant Program provides direct federal grants to undergraduate students who require financial assistance to meet educational expenses. The non-repayable awards are available to eligible students attending approved colleges and universities, vocational-technical schools, hospital schools of nursing, and other appproved postsecondary educational institutions. Awards to full time students for the 2004-2005 academic year will range from $400 to $4,050.

To apply for a Pell Grant, the student and/or parents should complete the Free Application for Federal Student Aid (FAFSA). In a few weeks, the student will receive a Student Aid Report (SAR) which will indicate whether or not the student is eligible for a Pell Grant.

Perkins Loan Program
This program provides students with five percent loans for educational expenses. Students who qualify may borrow up to $3,000 for each year of undergraduate study. Graduate and professional students can accumulate loan amounts up to $30,000. The financial aid officer is responsible for determining which students demonstrate need and the amount of the loan. Repayment begins nine months after leaving college and may extend over a ten-year period. To qualify for a loan, a student must demonstrate exceptional financial need and be enrolled on at least a half-time basis.

To apply for a Perkins Loan, the student and/or parents should complete the Free Application for Federal Student Aid (FAFSA). In a few weeks, the student will receive a Student Aid Report (SAR) which will indicate whether or not the student is eligible for a Perkins Loan.

Prepayment
Any amount paid on a loan by the borrower before it is required to be paid under the terms of the promissory note. There is never a penalty for prepaying principal or interest on Direct Loans.

Priority Deadline
Return a completed FAFSA to the Dept. of Education by March 1st and complete an Admissions application by February 1st.

Promissory Note
A legally binding document a student signs before receiving loan funds. The Promissory Note defines the terms of the loan and obligates the borrower to repay the funds. After the loan is processed, promissory notes are mailed to the student. The student must provide references and a legible signature on the promissory note and return one copy to the Office of Student Financial Aid prior to any loan monies being disbursed to the student's account.

Refund
The amount of funds available to the student after Title IV and scholarship funds have been applied to the student's bill.

Renewal FAFSA
The version of the FAFSA that students may use if they applied for federal financial aid the previous award year. If a student is among those allowed to complete a Renewal FAFSA, it will be sent directly to him or her by the FAFSA processor or the school.

Repayment Schedule
A statement provided by the Direct Loan Servicing Center to the borrower that lists the amount borrowed, the amount of monthly payments, and the date payments are due.

Resources
Other student aid that must be taken into account to prevent an overaward in the campus-based programs, as defined in federal regulations for the campus-based programs. Resources are called "estimated financial assistance" in determining a student's eligibility for some federal student loans.

Return of Funds
When all or part of student costs have been paid with Title IV funds, it may be necessary to return a portion of those funds to the Federal programs.

Scholarships
Scholarship funds are made available by private donors and are administered through the Shepherd College Foundation and Alumni Association. Shepherd College provides tuition waivers in conjunction with the state of West Virginia. The Office of Student Financial Aid processes both scholarships and tuition waivers awarded at Shepherd College.

Incoming students with a minimum high school or transfer GPA of 3.5 and a minimum composite ACT of 26 or converted SAT score are eligible for scholarship awards available. Scholarships are awarded to the students with the highest combination of GPA and AGT or converted SAT scores who meet the priority Admissions application date of February 1.

Scholarships and/or tuition waivers are also available from the areas of art, music, athletics, etc.

Supplemental Educational Opportunity Grants (SEOG)
Eligible students may qualify for up to $4,000 per year in non-repayable grant assistance through the SEOG program. SEOG awards must be directed toward students who demonstrate exceptional financial need. Graduate students are not eligible. The institutional financial aid officer determines those students who demonstrate the necessary eligibility requirements and identifies the amount each recipient will receive.

To apply for an SEOG, the student and/or parents should complete the Free Application for Federal Student Aid (FAFSA). In a few weeks, the student will receive a Student Aid Report (SAR) which will indicate whether or not the student is eligible for an SEOG.

Simplified Needs Test
An alternate method of calculating the expected family contribution for families with adjusted gross incomes of less than $50,000, who have filed or are eligible to file an IRS Form 1040A or 1040 EZ, or are not required to file an income tax return. Excludes all assets from consideration.

Special Circumstances
Any student with special circumstances such as change in income, extraordinary medical/dental expenses, unusual family circumstances, or other situation where the FAFSA would not accurately reflect the student's situation should schedule an appointment with the Office of Student Financial Aid to review his/her circumstances.

State Student Incentive Grant (SSIG)
State scholarship or grant assistance for postsecondary students with substantial financial need.

Student Aid Report (SAR)
A federal output document sent to a student by the application processor. The SAR contains financial and other information reported by the student on the Free Application for Federal Student Aid (FAFSA). That information is entered into the processing system, and the SAR is produced. The student's eligibility for aid is indicated by the EFC, which is printed on the front of the SAR.

Student Contribution
A quantitative estimate of the student's ability to contribute to postsecondary education expenses.

Summer School Financial Aid
Financial aid is available for summer school on a limited basis. All application materials required for the full academic year must be completed for summer school applicants. Students applying for summer school aid must also complete a summer school application available after Spring Break rom the Office of Student Financial Aid.

Direct Student Loans, Federal Work Study, and limited Federal Pell Grants may be available to students based on eligibility. Each student is required to attend a minimum of two credit hours during summer school to qualify for aid. For more detailed information, please contact the Office of Student Financial Aid.

Title IV Programs
Those federal student aid programs authorized under Title IV of the Higher Education Act of 1965, as amended. Includes Federal Pell Grants, Federal Supplemental Educational Opportunity Grant, Federal Work Study, Federal Perkins Loan, Federal PLUS Loan, Direct Loan, Direct PLUS Loan, and SSIG.

Title IV School Code
A code given to each post-secondary school that participates in the federal student aid programs administered by the U.S. Department of Education.

Unmet Need
Difference between a student's total cost of attendance at a specific institution and the student's total available resources, including financial aid.

Variable Interest Rate
Rate of interest on a loan that is tied to the 91-day Treasury bill rate and changes annually every July 1 as the index changes.

Verification Process
A procedure where a school checks the information a student reported on the FAFSA, usually by requesting a copy of signed Federal tax returns filed by the student and, if applicable, the student's parent(s) and/or spouse. Schools must verify students selected for verification by the federal central processing system, following procedures established by federal regulations. The contractor prints an asterisk next to the Expected Family Contribution (EFC) on SARs to identify students selected for verification. Many schools also select students for verification in addition to those selected by the central processing system.

West Virginia Higher Education Grant
Through this program grants are awarded (within limits of available funds) to qualified West Virginia undergraduate students who require financial assistance to attend approved public and private institutions of higher education. The amount of these grants fluctuates according to college choice. During 2004-05, the maximum grants at Shepherd College range from $2078 to $2558. Awards cannot exceed 70% of the tuition and fee charges at institutions selected by recipients nor can they exceed demonstrated financial need.

Students seeking grant assistance must complete the Free Application for Federal Student Aid (FAFSA). To ensure full consideration, the FAFSA must be received by the Federal Student Aid Programs on or before March 1.