The George Washington University

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Terms and Definitions

Applying for and receiving financial aid will involve learning terms and definitions with which you may not be familiar. Below is a list of definitions that may help you through the process:

Undergraduate

Cost of Attendance

Cost of attendance is the total cost of attending GW for one year. The cost includes tuition, fees, room and board, books and supplies, and personal and transportation expenses. Your financial need is determined by subtracting your estimated family contribution from the cost of attendance.

CSS PROFILE

The CSS PROFILE is a financial aid application administered by the College Board. Many College Board member institutions (including GW) require PROFILE as part of the financial aid application. GW uses the information collected through the PROFILE in conjunction with information collected through the FAFSA to determine your estimated family contribution.

Estimated Award

An estimated award is based on the income estimates entered on the PROFILE and FAFSA. In order to confirm an estimated award, the Office of Student Financial Assistance reviews your and your parents’ tax returns and W-2s to determine if the estimates were correct. If your family’s actual income is different from your estimates, or if you made mistakes on the PROFILE and FAFSA, your need will differ and the estimated award will be revised.

Estimated Family Contribution

Your estimated family contribution (EFC) is the amount of money your family is estimated to be able to contribute to your college costs. GW determines your institutional EFC (the amount GW specifically expects your family to pay) using an institutional formula based upon information from the CSS Profile and FAFSA. The cost of attendance minus your EFC equals your financial need.

Federal Aid

Students who demonstrate need may qualify for one or more types of federal financial assistance through The George Washington University, including:

• Federal Pell Grant
• Academic Competitiveness Grant (ACG) and SMART Grant
• Supplemental Educational Opportunity Grant (SEOG)
• College Work-Study Program
• Federal Perkins Loan
• Federal Stafford Loan
• Federal TEACH Grant

Financial Aid Award

Once your eligibility for need-based assistance has been determined, you will be considered for all of the types of aid for which you qualify. You may be offered a financial aid award, which will be coordinated with any GW merit awards you receive. Your need-based package may include one or more components including: gift aid in the form of scholarships or grants and self-help aid in the form of education loans or work-study funds. Your academic record, the extent of your need and the timeliness with which you complete your financial aid forms and application are all factors that determine the kinds and amounts of aid in your particular package.

Free Application for Federal Student Aid (FAFSA)

The Free Application for Federal Student Aid (FAFSA) is a federal form administered by the U.S. Department of Education. Information you submit on the form is used to determine your estimated family contribution (EFC) or the amount of money your family should be able to put towards your education. The FAFSA is the application form for all federal financial aid awards such as Pell Grants, loans and work-study. GW uses it in conjunction with the CSS Profile to determine your GW estimated family contribution.

Grants

Grants are a form of gift aid or money that does not need to be paid back. Grants can be awarded either through federal funds or University funds. Your eligibility for grants is determined by your financial need.

Institutional Aid

Students who demonstrate financial need may qualify for one or more types of need-based institutional aid through the University, including scholarships and grants.

Students who demonstrate academic excellence may qualify for merit-based institutional awards through the University. (Note: Merit awards are counted in our calculation of a family's financial need.)

Loans

Loans are the portion of your financial aid award that needs to be paid back. The University awards federal loans as part of the financial aid award; however you or your parents may be eligible for additional loans depending on creditworthiness.

Merit Aid

Merit aid is awarded solely on the basis of academic achievement. The Office of Undergraduate Admissions grants merit aid (or merit scholarships) during the application review process. Awards are based on high school achievement, test scores, leadership experience and writing skill. This aid is not dependent on financial need; however, receipt of merit awards will decrease your family’s financial need, not your estimated family contribution.

Need-Based Aid

Need-based aid is awarded on the basis of financial need as determined by information collected through the FAFSA, CSS PROFILE and your and your parents’ tax returns and W-2s. Need-based aid may include a combination of federal and institutional scholarships, grants, loans and work-study awards.

Official Award

An award is considered official once the Office of Student Financial Assistance has received your and your parents’ tax returns and W-2s and confirmed the information submitted on your FAFSA and PROFILE. If your family’s actual income is different from your estimates, or if you made mistakes on the PROFILE and FAFSA, your need will differ and your official award may be different than your estimated award.

Room and Board

Room and board refers to the cost of housing and food on campus for one year. This cost may vary depending on your choice of residence hall and meal plan.

Scholarships

Scholarships are a form of gift aid or money that does not need to be paid back. Scholarships are awarded by GW through University funds. Eligibility for these awards is determined by your academic achievement, financial need or a combination of both, depending on the award.

Graduate

Co-signer/Co-borrower

An additional applicant added to a loan to meet creditworthiness guidelines, often a parent. A co-signer/co-borrower has the same legal responsibility on the loan as the primary borrower.

Cost of Attendance

Cost of attendance is the total cost of attending GW for period of attendance. The cost includes tuition, fees, room and board, books and supplies, and personal and transportation expenses. Your financial need is determined by subtracting your estimated family contribution from the cost of attendance.

Credit-Based

Credit-based lending considers past credit history and income to determine eligibility for a loan. Repayment history, delinquencies, and length of time accounts have been established are considerations in determining a borrower's ability to obtain a loan. The credit history of both the student (if he or she has a credit history) and the co-applicant will be reviewed. GradPLUS and private loans are credit based.

Credit Score

Your credit score is a number based on the information in your credit file that shows how likely you may be to pay a loan back on time — the higher your score, the less risk you represent.

Deferment

A time during which the borrower is not required to make payment. During deferment, interest will accrue on the loan, although the borrower is not obligated to make payment on the loan amount.

Enrollment Status

Your educational institution's own classification of your attendance, important to your eligibility for student loans. Federal Stafford, GradPlus, and private loans require that you be enrolled at least half time.

Estimated Family Contribution

Your estimated family contribution (EFC) is the amount of money you and/or your spouse is estimated to be able to contribute to your college costs. GW determines your institutional EFC (the amount GW specifically expects your family to pay) using an institutional formula based upon information from the GW Questionnaire and FAFSA. The cost of attendance minus your EFC equals your financial need.

Federal Aid

Students who demonstrate need may qualify for one or more types of federal financial assistance through The George Washington University, including: Work-Study, Federal Stafford Loan and the Federal TEACH Grant.

Fixed Interest Rate

An interest rate which remains the same throughout the life of the loan, through repayment.

Free Application for Federal Student Aid (FAFSA)

The Free Application for Federal Student Aid (FAFSA) is a federal form administered by the U.S. Department of Education. Information you submit on the form is used to determine your estimated family contribution (EFC) or the amount of money you or your spouse should be able to put towards your education. The FAFSA is the application form for all federal financial aid awards such as loans and work-study. GW uses it in conjunction with the GW Questionnaire to determine your GW estimated family contribution.

Grace Period

The length of time a borrower is granted before the first payment is due. Grace period may refer to the time between disbursement of funds and the first payment if immediate repayment is required, or the length of time from the end of a deferment period to the first payment.

Grants

Grants are a form of gift aid or money that does not need to be paid back. Graduate grants are awarded from University funds.

Guarantee Fee

A fee charged for federally backed student loans. Also normally deducted from the gross loan proceeds and paid on your behalf by your lender to the guarantor.

Interest

Money paid for money borrowed. Most interest is computed using a percentage of the outstanding balance of the loan.

LIBOR

LIBOR means the London Interbank Offered Rate. LIBOR represents an average of the interest rates on dollar-denominated deposits, also known as Eurodollars, traded between banks in London. LIBOR is among the most common of benchmark interest rate indices used to make adjustments to variable rate loans.

Living Expenses

Living Expenses refers to an estimated cost of your living expenses, which may include housing, food, transportation, books and other supplies based on your period of enrollment. The University determines the estimated amount.

Origination Fee

The fee, charged by the lender, for services provided in connection with the origination and funding of the loan.

Prime Rate

The Prime Rate is defined by The Wall Street Journal as "The base rate on corporate loans posted by at least 75% of the nation's 30 largest banks." Visit Primerate for up to date loan rates.

Private Alternative Loan

Private alternative loans are non-federal, private credit based loan products offered by various lending institutions. The loans generally require school certification of enrollment and eligibility information, and are in the student's name. They can be used like a PLUS loan to borrow up to the cost of attendance less any financial aid.

Scholarships/Fellowships

Scholarships and/or fellowships are forms of gift aid or money that does not need to be paid back. GW awards, scholarships and/or fellowships are awarded through University funds and sponsored grants. Eligibility for these awards is determined by your past achievements, test scores and recommendations.

Subsidized (Stafford loan)

The subsidized portion of a Federal Stafford loan (up to $8,500 annually) has its interest paid by the federal government during the in-school (at least half-time enrollment) period, and for six months after graduation or a drop to less than half-time enrollment. The FAFSA (Free Application for Student Aid) is used to determine how much subsidized Stafford loan a student may borrow.

Unsubsidized (Stafford loan)

Up to $20,500 (the annual maximum) of a Federal Stafford loan may be unsubsidized, depending upon how much of a subsidy a borrower receives. If a student qualifies for the full $8,500 subsidy, then the maximum unsubsidized Stafford loan a student may borrow is $12,000 per year. Interest begins to accrue on unsubsidized Stafford loan upon disbursement.

Variable Interest

An interest rate that may change depending on the terms of the loan.