Glossary: Undergraduate Financial Aid - Northwestern University

Glossary

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Numbers

A

Accrued Interest

The interest on a student loan that begins to accumulate after a student completes school. This interest is charged on the principal amount of the loan.

Actual Funds

Funds are referred to as being "actual" once they have disbursed to your account.

Affiliated Program

An affiliated study abroad program is one with which Northwestern has a close working relationship.

Alternative Loan

Also referred to as a "private loan." This is any loan that is not a federal educational loan.

Anticipated funds

Funds are referred to as being "anticipated" when they have not yet disbursed to your account.

Appeal

To request reconsideration of your financial aid award, based on a change in financial circumstances or information that was not included at the time of the initial decision.

Appropriated Grant

Funds allocated by the University to be used for NU Scholarship financial aid assistance.

Authorization Form

A contract between a Work-Study student and his/her employer, and is required before the student can begin working.

B

Borrower

Person responsible for repaying a loan who has signed and agreed to the terms in the promissory note.

C

CAESAR

Computer Assisted Electronic Student Access Route. The student portal to Northwestern's Student Enterprise System, where students can manage their enrollment, financial aid and billing accounts and update contact information.

Campus-Based Aid

Financial aid programs that are administered directly by the financial aid office at the University. How much aid a student receives depends upon financial need, the amount of other aid received, and on the availability of funds.

Campus-Based Aid

Financial aid programs that are administered directly by the financial aid office at the University. How much aid a student receives depends upon financial need, the amount of other aid received, and on the availability of funds.

Capitalize

Adding accumulated interest to the loan principal rather than having the borrower make monthly interest payments. Capitalizing interest increases the principal amount of the loan and, therefore, the total cost of the loan.

Cash Advance

An advance of funds prior to the actual disbursement. If you have anticipated financial aid that exceeds the amount due on your bill, and you need to access these funds for living expenses, you may request a cash advance.

Cash Management

Students must respond to a cash management statement indicating whether they authorize the University to apply Federal Title IV funds towards discretionary charges on their student billing account. It is a federal requirement that the student provide a response if he/she is a recipient of Federal Title IV funding.

Co-maker

A signer other than the borrower who agrees to assume responsibility for repayment in the event that the borrower fails to repay.

Co-op Remission Grant

The Co-op Remission Grant is designed to offset the increased tuition charges a co-op student will incur during his/her fourth and fifth years of enrollment at Northwestern.

Co-signer

A signer other than the borrower who agrees to assume responsibility for repayment in the event that the borrower fails to repay.

Community Service

Community service is designed to improve the quality of life for community residents, particularly low-income individuals, or to solve particular problems related to their needs, including such fields as health care, child care, literacy training, education, welfare, social services, transportation, housing and neighborhood improvement, public safety, crime prevention, recreation, rural development and community improvement.

Consolidation

A loan funded by a private lender that combines multiple Title IV student loans into a single loan with one monthly payment.

Consumer Information

Information Title IV institutions are required to disclose to their consumers, enrolled students, and prospective students.

Cost of Attendance

A student's total cost of attending an institution for a specified period of time. The COA includes tuition, fees, room, board, an allowance for books, supplies, transportation, loan fees, and some miscellaneous expenses as well.

CSS Profile

A financial aid application service of the College Board used to determine eligibility for institutional student aid funds.

Custodial Parent

In a family where the parents are divorced, separated or were never married, the custodial parent is the person who has primary care, custody or control of the child.

D

Default

Failure to repay a loan in accordance with the terms of the promissory note.

Deferment

The temporary postponement of loan payments.

Degree-Seeking Program

A course of study that leads to the awarding of a degree.

Dependent Student

A student that is financially dependent upon a parent or legal guardian or a student who does not meet certain criteria for being classified as independent.

Direct Loan Program

The William D. Ford Federal Direct Loan Program provides loans to student and parent borrowers directly through the U.S. Department of Education rather than through a bank or other lender.

Direct Loan Servicing Center

The U.S. Department of Education's agency contracted to collect Direct Loans and handle deferments, repayment options, and consolidation.

Disbursement

When loan proceeds are paid by the school to the student or parent borrower.

E

Earnings Expectation

The amount that a student is expected to contribute from his/her summer earnings to help pay for his educational expenses.

Earnings limit

The maximum amount that a Work-Study student can earn. This varies by student and is based on need.

EFT

Electronic Fund Transmission. Most lenders now send loan proceeds electronically, eliminating the need for students to endorse a paper check.

Emergency Loan

The University-sponsored emergency loan program, which is available to any Northwestern student and is administered by the Office of Financial Aid.

Endowed Grant

Funds donated to the University to be used for NU Scholarship financial aid assistance. These scholarships usually have additional eligibility criteria stipulated by the donors.

Endowed Loan

Endowed loans are offered infrequently and only in special circumstances. The program is administered by the Student Loan Office at Northwestern.

Entrance Interview

Title IV institutions must offer loan counseling to first-time federal student loan borrowers before disbursing the loan. Entrance counseling covers the borrower's rights and responsibilities, the terms and conditions of the loan, and the consequences of default.

Exit Interview

A group or individual session during which borrowers who are leaving school or dropping below half-time enrollment receive important information about their federal loan repayment obligations.

Expected Family Contribution (EFC)

A comparative measure, determined according to a need analysis formula, of how much the student and his or her family can be expected to contribute to the cost of the student's education for an award year. This figure is used to determine an applicant's eligibility for financial aid. The federal EFC figure is shown on the SAR and ISIR received after completing the Free Application for Federal Student Aid (FAFSA).

F

FAFSA

Free Application for Federal Student Aid. The form that must be completed in order to receive federal student aid. The FAFSA gathers data needed to calculate the Expected Family Contribution (EFC) to determine federal student aid eligibility.

Federal Aid

Aid that is funded by the federal government, such as the Pell Grant and the Perkins Loan.

Federal Need

The cost of attendance minus the federal expected family contribution (EFC) from the Free Application for Federal Student Aid (FAFSA) Student Aid Report (SAR) equals the student's federal financial need.

Federal Title IV Aid

Financial aid programs for postsecondary students, authorized under Title IV of the Higher Education Act of 1965 and are administered by the U.S. Department of Education. Title IV federal student aid programs include: Pell, SEOG, ACG, SMART, Work-study, Perkins loan, Stafford loan and the Parent PLUS Loan..

Federal Work-Study

A campus-based, federally funded employment program that provides paid jobs for students with financial need.

Field Studies

Credit-earning off-campus programs at locations throughout the United States.

Fixed Interest Rate

A loan with an interest rate that will remain at a predetermined rate for the entire term of the loan.

Forbearance

A period of time during which a lender permits a borrower to temporarily cease making payments, to make reduced payments, or to extend the time for making payments. Forbearances are usually granted at the discretion of the lender at the borrower's request. The borrower is responsible for the interest that accrues and, if unpaid, the interest may be capitalized.

G

Grace Period

A period before the first payment must be made on a loan. The grace period starts the day after a borrower ceases to be enrolled at least half time.

H

Home Institution

The institution at which the student is enrolled in a degree-seeking program.

I

IDOC

Institutional Documentation Service. A service provided by the College Board. IDOC collects families' federal tax returns and other documents on behalf of participating colleges and programs, and provides the information electronically to the institution.

In-School Period

The period during which a borrower pursues his or her studies and is enrolled at least a half-time student at a participating school. This period begins with the first date of disbursement and ends with the beginning of the grace period.

Independent Student

A student who is at least 24 years old, married, a graduate or professional student, a veteran or on active duty in the military (for other than training or state purposes), an orphan, a ward of the court, or who has legal dependents other than a spouse.

Institutional Aid

Aid that is funded by the University, such as the NU Scholarship and the NU Loan.

Institutional Need

The cost of attendance (COA) minus the institutional expected family contribution (EFC) equals the student's institutional financial need.

Interest

A loan expense charged by the lender and paid by the borrower for the use of borrowed money. The expense is calculated as a percentage of the principal amount (loan amount) borrowed.

iPROMise

A third-party web site that handles the online Perkins Loan application process for Northwestern.

ISAC

Illinois Student Assistance Commission. ISAC offers Illinois residents a variety of grant and scholarship programs such as the Illinois MAP Grant.

J

K

L

Lender

A lending institution.

Loan Certification

The Financial Aid Office's authorization that a student is eligible for a specific loan amount. A loan must be certified, or approved, by the Office of Financial Aid before the lender can process the loan.

Loan Limits

Also referred to as "aggregate limits". These are maximum amounts a student may obtain through federally funded Student Financial Assistance programs (SFA). Loan limits vary by type of loan, academic level, program length, and whether a student is dependent or independent.

Loan Period

The period of enrollment for which a loan is being borrowed.

M

MAP

Monetary Assistance Program. A need-based grant program for Illinois residents.

Master Promissory Note

The legal document that requires a federal student loan borrower to repay the funds borrowed. It may be used for multiple years.

Merit

Eligibility as determined by academic merit.

N

9-pay

An installment payment option for tuition, fees and room and board. It allows participants to make their tuition and fee payments to Northwestern in nine monthly installments instead of at the start of each term. There are no finance or interest charges. It is administered by the Office of Student Accounts.

Need-Based

Eligibility is determined by financial need.

Need Analysis

The process of analyzing a student´s financial need. This process focuses on determining how much the family reasonably can be expected to contribute towards the student´s education. Traditionally, determination of an applicant´s need is achieved by collecting information about the family´s income, assets, and living expenses. For the federal student aid programs, the law specifies a need analysis formula that produces the Expected Family Contribution (EFC). The EFC and the college´s cost of attendance are used by the postsecondary school to establish the student´s need as well as to award grants, campus-based aid, and subsidized loans.

Non Need-Based

Eligibility is not determined by an evaluation of a student's financial need.

Noncustodial Parent

In a family where the parents are divorced, separated or were never married, the noncustodial parent is the person who does not have primary care, custody or control of the child.

NSLDS

National Student Loan Data System. The federal database that collects and maintains student loan and grant data on Title IV federal student aid recipients.

NU Loan

The NU Loan Program is an institutionally sponsored loan program administered by the Student Loan Office at Northwestern with limited funding.

O

Origination Fee

A fee charged and deducted from the proceeds of a loan program loan before the loan is disbursed. The origination fee offsets some of the administrative costs of loan processing.

Outside Scholarship

A private or outside scholarship is any scholarship that is awarded to you from a source other than the University.

OWLS

Online Web Loan System. Students apply for the NU Loan via this online system.

P

Pell

A federal grant program for undergraduate students with financial need.

Perkins

A campus-based federal loan program that provides low-interest student loans to students with financial need.

PIN

Personal Identification Number. The PIN is a unique identifier that allows student and parent applicants access or change their FAFSA information. Most importantly, the PIN can be used to electronically 'sign' the application. Similar to a bank PIN, the PIN should be kept secure and private. All users (students and parents) are required to activate their PINs before use, and all users must actively agree not to share their PIN with anyone. Any student can obtain a PIN at the Department of Education's PIN Registration Web site, www.pin.ed.gov.

PLUS

Federal Parent Loan for Undergraduate Students. Credit-based loans borrowed by parents for the purpose of helping to finance their son or daughter's undergraduate education. Parents are responsible for all interest charges. The loan value may not exceed the full cost of the student's education minus any other financial aid that the student receives.

Portable Funding

Financial aid processed by a visiting student's home institution to cover costs for that student's temporary enrollment at Northwestern.

Principal

The total sum of money borrowed.

Private Loan

Also referred to as an "alternative loan". It is any loan that is not a federal educational loan.

Private Scholarship

Also referred to as an "outside scholarship". It is any scholarship that is awarded to a student from a source other than the University.

Professional Judgement

A provision in the law allowing financial aid administrators to make individual adjustments to override a student's dependency status (from dependent to independent), to adjust the components of a student's cost of attendance (COA), and to adjust the data elements used to calculate the student's expected family contribution (EFC). Professional judgment can only be used on a case-by-case basis and the reason must be documented in the student's file. Professional judgment cannot be used to circumvent the law or Title IV regulations. A parent's unwillingness to assist a dependent student is not by itself grounds for a dependency override.

Promissory Note

A legally binding contract between a lender and a borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid.

Prospective

Someone who has applied, or is considering applying for admission to the University.

Q

R

Rebate

An up-front interest rebate subtracted as fees on direct loans. The rebate amount is 1% of the amount borrowed on Stafford loans and 1.5% for Direct PLUS loans.

Refund

If the financial aid applied to your account exceeds the amount due on your bill, you may request a refund. The funds must be actual, not anticipated.

Repayment

The period during which a borrower is responsible for repaying his or her loan. Depending on the type of loan, repayment can begin either at the end of the grace period or with the very first disbursement of the loan.

S

SAP

Satisfactory Academic Progress. A satisfactory rate of student course-completion determined using qualitative and quantitative measures. By law, schools whose students receive Title IV funds must establish policies for monitoring satisfactory academic progress (SAP). Schools must check at least once each academic year and document for each payment period that each student receiving Title IV aid is progressing satisfactorily in their academic program.

SAR

Student Aid Report. A federal "output" document sent directly to a student from the Department of Education's Central Processing System (CPS) that summarizes information submitted on the student's Free Application for Federal Student Aid (FAFSA) and provides the student's Expected Family Contribution (EFC). The SAR is either a paper document mailed to the student or a Web document that can be accessed via a secure link the student receives through email.

Satisfactory Academic Progress

Satisfactory Academic Progress. A satisfactory rate of student course-completion determined using qualitative and quantitative measures. By law, schools whose students receive Title IV funds must establish policies for monitoring satisfactory academic progress (SAP). Schools must check at least once each academic year and document for each payment period that each student receiving Title IV aid is progressing satisfactorily in their academic program.

Self-Help

Assistance programs that require the student to either repay the received assistance through student loans or work for the assistance in the form of a work-study program.

SEOG

Federal Supplemental Educational Opportunity Grant. A campus-based program that provides grant assistance to needy undergraduate students. Priority in awarding Federal Supplemental Educational Opportunity Grant funds is given to students who have exceptional financial need and are Federal Pell grant recipients.

Separation

The point at which the student graduates, withdraws, or leaves the University.

Servicer

A company employed by a lender or the Department of Education to perform the administrative tasks, such as collecting payments, that are associated with education loans. Original interest and repayment terms remain in effect when the loan is transferred to a servicer..

Stafford Loan

Stafford Loans are federal student loans made to students to assist with his/her educational costs. Stafford loans may be subsidized by the government or unsubsidized depending on the student's need as determined by the FAFSA.

Subsidized Stafford Loan

A federally subsidized student loan offered on the basis of the student's financial need and other specific eligibility requirements. Stafford subsidized loans have subsidized interest, which means that the federal government does not charge interest on these loans while borrowers are enrolled at least halftime. Stafford subsidized loans are available to undergraduate students while the student is in school. The borrower begins to repay the principal and interest after leaving school.

T

Term Pricing Exception

A lesser tuition amount charged for students enrolled less than full-time. Financial aid recipients may need to have their eligibility re-evaluated in light of such an adjustment to charges.

To-Do Item

Available via CAESAR. It is a checklist of outstanding items or actions that he/she will need to complete in order to receive financial aid.

U

UAPP

University Aid Application. A required document (available online via CAESAR) for current and returning students applying for need-based financial aid.

Unaffiliated Program

An unaffiliated study abroad program is one with which Northwestern does not have a close working relationship.

Unsubsidized Stafford

A federal student loan offered to borrowers meeting specific eligibility requirements. Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal). Stafford unsubsidized loans are available to undergraduate students while the student is in school.

V

Variable Interest Rate

Rate of interest on a loan that is tied to a stated index and changes periodically as the index changes or the lender dictates.

Verification

The process a school follows to confirms the accuracy of information reported by a student on the Free Application for Federal Student Aid (FAFSA) as selected for verification by the Central Processing System (CPS). Schools may also choose to verify other applications. Whether the application is selected by the CPS or chosen for verification by the school, the school verifies the application information by comparing it to documentation provided by the student (and parents, if required).

Visiting Student

Those who are enrolled in classes at the University, but whose home institution is not Northwestern.

W

X

Y

Z