Glossary

- A -

ASAP (Alabama Student Assistance Program)

Need-based grant. Awarded to in-state students pursuing their first undergraduate degrees. Eligibility: based on exceptional need, availability of funds, and Federal Pell eligibility. Funds are limited. Students are strongly encouraged to meet the March 1 FAFSA priority date.

Academic Year

Starts with fall semester and ends with the summer semester.

Alabama GI

If you are the child, spouse, or widow(er) of a service related disabled or deceased Alabama veteran, you may qualify for the free tuition, instructional fees and required books when you attend any state supported college located in Alabama. Veterans Service Officers of the Alabama Department of Veterans Affairs maintain an office in each county of the State. They can furnish information and assist in filing application for educational benefits. You may also receive additional information by writing: Alabama GI Dependents' Scholarship Program, Alabama Department of Veterans Affairs, P.O. Box 1509, Montgomery, AL, 36102-1509 or phone (334) 242-5126.

- C -

Campus-Based Programs

Sources of financial aid which include the Federal Perkins Loan, Federal Supplemental Educational Opportunity Grant and Federal Work Study. These programs have limited funds and are awarded by UA, based on financial need and are awarded first to students who met the March 1 priority deadline.

Cost of Attendance

The estimated total amount it will cost to attend the University of Alabama. It is determined by Student Financial Aid using rules established by the U.S. Congress. It is based on average costs incurred by students. Amounts are included for tuition, room/board, books, travel, and personal miscellaneous expenses.

- D -

Dependent Student

Established by the Federal Government, dependency is based on:

You're a dependent student for the academic year if all of the following apply to you:

  • you are younger than age 24;
  • you are not married;
  • you are enrolled in an undergraduate program of study towards your first bachelor's degree;
  • you have no legal dependents;
  • you are not an orphan or ward of the court; or
  • you are not 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).

Direct Loan

Direct Loans is the Department of Education's lender. The University of Alabama uses Direct Loans for Federal Stafford and Federal PLUS loans instead of private lenders such as banks.

- E -

EFC (Expected Family Contribution)

The amount you and/or your parents are expected to contribute toward your educational expenses as determined by a federally-mandated formula, which uses the information you provide on your FAFSA or Renewal FAFSA. Your EFC is used to determine your financial need.

Electronic Processing

The electronic exchange of information between the University of Alabama and the federal processor.

Entrance Counseling

A requirement for first time borrowers to learn about the rights and responsibilities as a student loan borrower. Federal Stafford Loan entrance counseling must be completed online at studentloans.gov. Federal Perkins Loan counseling must be completed at studentreceivables@fa.ua.edu.

Estimated Cost of Attendance

The anticipated cost of attending the University of Alabama for one academic year: including, tuition, room and board, books and supplies, travel and personal expenses.

- F -

FAFSA (Free Application for Federal Student Aid)

The application used to determine financial need. When completing this form for The University of Alabama, it is not necessary to complete any supplement you may have received with the FAFSA, or to pay any fees for processing.

Federal Direct Loan

Federal Direct Loans can be subsidized or unsubsidized for the student or the optional Federal PLUS (Parent Loan for Undergraduate Students) for parents of dependent undergraduate students. There is a 1.051% loan origination fee for subsidized and unsubsidized loans. A 4.204% loan origination fee is charged for Federal PLUS loans. Students indicate their interest in loans on the FAFSA. Parents may complete a Federal PLUS application for consideration for the Federal PLUS loan.

Federal Pell Grant

Awarded on basis of financial need as determined by information submitted on the FAFSA. Awarded to students pursuing their first undergraduate degree. Students must maintain satisfactory academic progress. Amounts vary according to enrollment status and need. The maximum grant for 2013-2014 is $5,645. Grant amounts are based on Expected Family Contribution and enrollment status: full time (12+ credit hours), three-quarter time (9-11 credit hours), one-half time (6-8 credit hours), and less than half time (fewer than 6 credit hours). Students apply for the Federal Pell Grant by submitting a FAFSA.

Federal PLUS (Parent Loan for Undergraduate Students)

The Federal Direct Parent Loan for Undergraduate Students (PLUS) is not based on financial need. Only parents or dependent undergraduate students may apply for this loan. A parent is currently defined as a student's natural or adoptive mother or father or step-parent. Parents are required to pass a credit check. The annual limit is equal to the student's cost of attendance, as defined by The University of Alabama, minus any other financial aid the student is receiving. Repayment begins 60 days after the loan disburses, or the borrower may request to defer repayment until the student graduates or ceases to be enrolled at least half-time. The current interest rate is fixed at 6.41%. Interested parents may apply for a Parent PLUS Loan here.

Federal Stafford Loan

Either of the student loans offered by the University of Alabama: subsidized and unsubsidized. There is a 2% loan origination fee charged before the loan disburses. Interest rates for both loans are fixed 3.86% for the 13-14 year. Graduate Unsubsidized Stafford loans are currently fixed at 5.41%. There are yearly and total limits for student borrowers. Students apply for these loans by indicating their interest in loans on the FAFSA. Repayment does not begin until the student is below half-time enrollment

Federal Perkins Loan

The Federal Perkins Loan is a fixed, low-interest (5%) loan awarded on the basis of financial need. Undergraduate students must be Federal Pell Grant eligible to be considered for the Perkins loan. No origination fee is charged. Funds are limited. Priority is given to undergraduate students who are enrolled at least half-time. You apply for this loan by submitting a FAFSA. Repayment does not begin until the student is below half-time enrollment.

Federal Work Study

A form of financial aid which must be earned. Federal Work Study is need-based aid. Funds are limited. You indicate your interest in Federal Work Study on the FAFSA.

FSEOG (Federal Supplemental Educational Opportunity Grant)

Awarded on basis of financial need as determined by information submitted on the FAFSA. Awarded to students pursuing their first undergraduate degree. Students must maintain satisfactory academic progress. Amounts vary according to need. The maximum grant awarded by UA for an academic year is $1000. Funds are limited. Students are strongly encouraged to have a complete application on file by the March 1 priority date. Students apply for SEOG by submitting a FAFSA.

Financial Aid Package

An offer of financial aid usually comprised of a combination of aid programs which may include scholarships, grants, loans and/or Federal Work Study funds.

Financial Need

The difference between your budget as established by the University of Alabama and your Expected Family Contribution (EFC) as determined by information provided on the FAFSA.

- G -

Gift Aid

A form of financial aid that does not have to be repaid or earned.

Grace Period

A period of time granted to loan borrowers during which no payment of principal is due. After you graduate, leave school or drop below halftime you enter a grace period. This grace period is usually six months (check with your lender). You only get one grace period.

Grant

A form of financial aid that does not have to be repaid or earned.

- I -

ISIR (Institutional Student Information Record)

The FAFSA information that the University of Alabama receives from the central processor. You, the student, receive a Student Aid Report with your information. We, the school, receive the ISIR with your information. (Your ISIR/SAR information is provided to our school electronically.)

Independent Student

You're an independent student for the academic year if at least one of the following applies to you:

  • you are 24 years old;
  • you are married;
  • you are enrolled in a graduate or professional educational program (beyond a bachelor's degree);
  • you have legal dependents other than a spouse;
  • you are an orphan or ward of the court (or were a ward of the court until age 18) or...
  • you are 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).

- L -

Loan

Loans must be repaid. Loans are available to help with your educational expenses.

  • The Federal Perkins Loan is a fixed, low-interest (5%) loan awarded on the basis of financial need. No origination fee is charged. Funds are limited. Priority is given to undergraduate students who are enrolled at least half-time. You apply for this loan by submitting a FAFSA. Repayment does not begin until the student is below half-time enrollment
  • The Federal Direct Subsidized Stafford Loan is awarded on the basis of financial need. Currently, if you qualify for this loan, the government pays the interest on the loan until you begin repayment and authorized periods of deferment thereafter. There are yearly and aggregate limits. The interest rate is fixed at 6.0%. You apply for this loan by submitting a FAFSA. Repayment does not begin until the student is below half-time enrollment
  • The Federal Direct Unsubsidized Stafford Loan is not awarded on the basis of need. However, students must complete the FAFSA in order to be considered for this loan. Interest is charged on the loan from the time the loan is disbursed until it is paid in full. Students may elect to pay the interest while in school or allow it to accumulate and be added to the principal loan amount. There are yearly and aggregate limits. The interest rate is fixed at 6.8%. You apply for this loan by submitting a FAFSA. Repayment does not begin until the student is below- time enrollment
  • The Federal Direct Parent Loan for Undergraduate Students (PLUS) is not based on financial need. Only parents or dependent undergraduate students may apply for this loan. A parent is currently defined as a student’s natural or adoptive mother or father or step-parent. Parents are required to pass a credit check. The annual limit is equal to the student’s cost of attendance, as defined by The University of Alabama, minus any other financial aid the student is receiving. There are two methods of repayment. Borrowers may begin repayment 60 days after the loan disburses, or may request that repayment be deferred until the student graduates or ceases to be enrolled at least half-time. Interest will accrue during the deferment period. The interest rate is fixed at 7.90%. Interested parents can also print a Federal PLUS loan application from our Forms page.

- N -

Need-based Aid

Aid programs for which you must demonstrate financial need in order to qualify. Students must complete the FAFSA. Financial need is determined from answers you provide on the FAFSA.

- O -

Origination Fee

A fee which is applied to Federal Direct Loans. This fee is a percentage of the loan amount and is deducted from the amount approved before the Direct Loans disburses the funds. There is a 2% loan origination fee for subsidized and unsubsidized loans. A 4% loan origination fee is charged for Federal PLUS loans.

Outside Scholarship

A scholarship funded by sources outside Student Financial Aid. These sources include corporations, individuals, or University departments, schools and colleges.

-P-

Priority Date

The priority date to complete the Free Application for Federal Student Aid each year is March 1.

- R -

Refund Check

A check you receive from The University of Alabama for any funds remaining in your student account after aid has been disbursed and fees paid.

- S -

SAR (Student Aid Report)

The report you receive as a result of filing the FAFSA or Renewal FAFSA.

Student Account

An account to which your financial aid is disbursed. These funds pay your tuition and fees or receivables owed to The University of Alabama. If funds remain after fees are paid, the balance is refunded to you via a refund check.

Subsidized Loan

The Federal Direct Subsidized Stafford Loan is awarded on the basis of financial need. Currently, if you qualify for this loan, the government pays the interest on the loan until you begin repayment and authorized periods of deferment thereafter. There are yearly and aggregate limits. There is a 2% loan origination fee charged before the loan disburses. The interest rate is fixed at 6.0%. You apply for this loan by submitting a FAFSA. Repayment does not begin until the student is below half-time enrollment.

- U -

Unsubsidized Loan

The Federal Direct Unsubsidized Stafford Loan is not awarded on the basis of financial need. Interest must be paid while the student is in school or added to the balance of the loan. Repayment does not begin until the student is below half-time enrollment. There are yearly and aggregate limits. There is a 2% loan origination fee charged before the loan disburses. The interest rate is fixed at 6.80%. You apply for this loan by submitting a FAFSA.

- V -

Veteran's Education Benefits

Educational benefits for qualified veterans and their dependents. Amounts vary according to the type of benefit. Visit the Veteran and Military Affairs website for more information.

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