Key Financial Aid Terms

Cost of Attendance (COA)
The total amount it will cost you to go to school—usually expressed as a yearly figure. It’s determined using rules established by law.

Default
 Failure to repay a student loan according to the terms agreed to when you signed a promissory note. For most student loan programs, default is more specific—it occurs if you fail to make a payment for 270 days if you repay monthly.

Electronic Funds Transfer (EFT)
Used by some schools and lenders to wire funds for Stafford and PLUS loans directly to participating schools without requiring an intermediate check for the student to endorse. The money is transferred electronically instead of using paper, and hence is available to the student sooner. If you have a choice of funds transfer methods, use EFT.

Financial Aid Award
 The total amount of financial aid (federal and nonfederal) a student receives.

First-Time Borrower
A first-year undergraduate student who has no unpaid loan balances outstanding on the date he or she signs a promissory note for an educational loan. First-time borrowers may be subjected to a delay in the disbursement of the loan funds. The first loan payment is disbursed 30 days after the first day of the enrollment period. If the student withdraws during the first 30 days of classes, the loan is canceled and does not need to be repaid. Borrowers with existing loan balances aren't subject to this delay.

Half time
For a school measuring progress in credit hours and semesters, “half time” is at least six semester hours per term for an undergraduate program.  You must be attending school at least half time to be eligible for a Stafford Loan.

Regular Student
One who is enrolled or accepted for enrollment at an institution for the purpose of obtaining a degree.

FAFSA stands for Free Application for Federal Student Aid.  The federal government uses this form to determine your eligibility for financial aid, which includes: grants, work-study, scholarships and loans.

SAR stands for Student Aid Report. The SAR is the results from completing the FAFSA. If you completed the FAFSA electronically with an email address listed your SAR will come to you electronically.

EFC stands for Expected Family Contribution.  The EFC is the number the financial aid office uses to determine what and how much financial aid you are eligible to be awarded.

Additional Financial Aid Terms