| WCC Home: Student Services: Student Connection: Financial Aid |
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Glossary of Financial Aid Terms Academic Year Begins fall semester and ends the following spring/summer semester. Students must apply for financial aid (including scholarships) each academic year. Application For Admission All students are required to apply for admission to the college. Award Letter A notice to the student of financial aid funds awarded. The student must submit a loan request form to accept this award. Once the student receives the award letter, he/she should not make any changes to the FAFSA data. Capitalization If you choose to not pay the interest on your loan while in school, the interest is capitalized or added to the principal. College Work Study Federal or State programs provide the opportunity for students to earn part of their educational expenses. Eligible students (as determined by the FAFSA) and a work-study application, may work part-time either on or off campus. The placement of work-study students is coordinated through the Employment Services Office. Students must be enrolled at least half-time (6 credit hours). Cost Of Attendance The total amount it will cost a student to go to a particular school. This budget figure includes allowances towards tuition, fees, room and board, personal expenses, books and supplies, and transportation. Default Failure to repay a student loan according to the terms agreed upon when the promissory note was signed. Default means the student cannot receive any further financial aid until the default is satisfactorily resolved. Deferment A postponement of the repayment of student loans if the student meets certain criteria set by the lender (i.e., enrolled at least half time, unemployment, economic hardship, etc.). Dependent Student A student is considered dependent and must provide a parent(s) information on the FAFSA if:
Dependency Override A change in dependency status of the student, based on special circumstances. Unmarried students under the age of 24 may be considered independent of their parents if an unintentional, involuntary or uncontrollable break in the family relationship has occurred. Documents to verify the student's family situation must be submitted. Requesting a dependency override does not always guarantee approval. Disbursement A payment of financial aid funds on the tuition balance. Drop Term used when a student removes a class from his/her schedule by the 100% refund deadline for the session. The refund deadlines are published in the printed College Bulletin or on the Web. The student receives a refund for tuition paid minus any fee that may apply to the particular class. This class will not show on the student transcript. Students on financial aid may owe money back if they drop a course. Eligibility For Financial Aid The Financial Aid Office makes final determination of the student's eligibility for financial aid funds. Even though the student receives notification from the Federal Processor that they may qualify, the final amount of the awards and terms and conditions of the awards are made by Washtenaw Community College. Enrollment See Registration for classes. Enrollment Status The number of credit hours for which the student is registered for each semester. The enrollment status determines the amount of the student's financial aid award, based on the following enrollment categories:
Required counseling to inform students of their rights, responsibilities, and borrower options under the Federal Family Educational Loan Program. Expected Family Contribution (EFC) An amount, determined by a formula established by Congress, that indicates how much of the student's and family's financial resources are available to help pay for school. The EFC is used to determine the student's eligibility for federal, state and institutional student aid. Federal Family Education Loan Program (FFELP) The FFELP is a public-private partnership created by Congress in 1965 to deliver and administer guaranteed education loans for students and their parents. Financial Need Cost of Attendance minus Expected Family Contribution. This is used to determine grant, work-study, loan and scholarship eligibility. Forbearance Students can stop making payments on their student loan due to unexpected personal problems, poor health or serving in a medical or dental internship or residency. Forbearance can be requested from the lender of the loan. Interest still accumulates while in forbearance. Free Application For Federal Student Aid (FAFSA) The application form used to apply for various Federal, State and institutional need based financial aid programs. The application is available on the internet at www.fafsa.ed.gov (WCC has computers available for students to use, free of charge). Grace Period The amount of time allowed before principal repayment of loan must begin after the student graduates, leaves or drops below half-time status (less than 6 credit hours). Grant Grants are forms of financial aid the student does not have to pay back, unless the student receives grant money and doesn't attend classes or withdraws from all classes during a portion of the semester. Eligibility for grants are determined by the FAFSA. Guaranty Agency Your guaranty agency (Michigan Guaranty Agency) is the backer of your loans, and guarantees payment to the lender if you default (fail to repay) your loans. The guaranty agency becomes the servicer of your defaulted loans. Interest The fee charged to borrow money, usually a percent of the outstanding loan amount, which accrues and is paid over the life of the loan. Loan A loan is the type of aid that requires repayment. The Federal Family Educational Loan Program (FFELP) is a program with competitive interest rates and deferred repayment options. There are 2 types of student loans: subsidized and unsubsidized.
Master Promissory Note (MPN) The promissory note the student signs when borrowing a loan from the Federal Family Educational Loan Program (FFELP). When the student signs a FFELP Stafford loan promissory note, a binding legal document, he/she promises to repay the student loan(s). The note also includes important language about rights and responsibilities as a borrower. The Master Promissory Note covers both the subsidized and unsubsidized FFELP. Overpayment The amount of financial aid a student receives for which he/she is not eligible due to not attending classes, dropping classes during the semester or withdrawing from classes during the Federal Title IV calendar for overpayment calculations. Overpayments of Federal financial aid funds prevent a student from receiving future financial aid until the financial obligation has been paid in full or satisfactory payment arrangements have been made. Parent Loan For Undergraduate Student (PLUS) These loans under the Federal Family Education Loan Program (FFELP) and are for parents of dependent undergraduate students. They require a credit check. The interest rate is low and repayment begins 60 days after disbursement. Principal The loan amount which was borrowed before interest and that must be repaid upon maturity and the amount upon which interest will be charged. Registration This is the process when the student signs up for specific classes. Registration can be done on the web, during scheduled time periods. Registration and enrollment are the same thing. Satisfactory Academic Progress To be eligible to receive financial aid, the student must meet the College's written standards of satisfactory academic progress policy. This policy defines the minimum grade point average the student must maintain, the minimum number of credits the student must complete and the cumulative maximum number of classes/credit hours the student can take to receive financial aid. Student Aid Report This report is sent to you by the government after you submit your FAFSA. This will inform you of your Estimated Family Contribution (EFC). Scholarships Scholarships, like grants, do not have to be repaid. These are available from many sources including community groups, schools and private corporations. Scholarships are awarded based on a variety of criteria. School Code The federal code is assigned to each college or university that participates in financial aid programs. The code number for Washtenaw Community College is 002328. By listing this code on your Free Application for Federal Student Aid (FAFSA), Washtenaw Community College will receive the results of your application. Special Consideration Form A form the student may complete (at his/her option) if his/her financial situation changes significantly from the previous year, based on special circumstances (i.e. death in the family, divorce, separation, loss of employment). This form is filed only after student has a completed financial aid file. Stafford Loan Loans under the Federal Family Education Loan Program (FFELP) awarded on the basis of financial need. The Federal Stafford Loan can either be subsidized or unsubsidized or a combination of both. These loans can be made from a bank, credit union or other eligible lender. Subsidized Federal Stafford Loan The government pays the interest for the student while in school at least half-time (6 credit hours), during grace periods, and deferment. Student Aid Report (SAR) A summary of the financial information submitted on the Free Application for Federal Student Aid (FAFSA). The SAR is sent by the federal processor (approximately 7-10 days after the FAFSA is filed on line) to the student at the address reported on the FAFSA. Unsubsidized Federal Stafford Loan The student is responsible for paying the interest while in school, during grace periods, and deferment. Verification A process by which Washtenaw Community College compares information reported on the Student Aid Report against tax returns and all supporting financial documents, (i.e. Social Security, unemployment, etc.) Students are randomly selected for verification by the U.S. Department of Education or by Washtenaw Community College, based on certain criteria. Withdrawal Term used when a student removes a class from their schedule after the 100% refund deadline for the session. The refund deadlines are published in the printed Academic Class Schedule or on the Web. The student is responsible for all of the tuition and fees associated with the course, and the course will be listed on the student transcript with a W (Withdrawal). Students on financial aid may owe the government money back if they withdraw from all of their courses in a semester. (See information related to Overpayments). Withdrawing from a course may also jeopardize the student's status related to the Academic Intervention Program; and any students receiving financial aid may not achieve the required Satisfactory Academic Progress policy. | |||||||
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