Office of Scholarship
& Financial Aid
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Academic Competitiveness Grant
A federal grant of $750 for the first year and $1300 for the second year of undergraduate study to full-time students who are U.S. citizens eligible for the Pell Grant and have completed a rigorous high school curriculum. Second year requires a 3.0 cumulative GPA.
Academic year
Period from end of August to early August of the following year (Fall, Spring and Summer semesters). If a student is enrolled for only one semester of an academic year, satisfactory progress is evaluated on that basis only.
Academic year borrowing
Students are permitted to borrow the maximum for their grade level once during an academic year. MSUM defines an academic year as fall and spring terms PLUS the following summer term. Once a student's borrowing has reached the maximum for their grade level, additional eligibility is not regained until the next fall semester.
Accrual Date
The day interest charges on an educational loan begins.
Award Letter/Notice
An offer of financial aid assistance to a student attending a postsecondary educational institution. This award may be in the form of one or more of the following types of financial aid: repayable loan, a non-repayable grant or scholarship, and student employment.
Borrower
Person responsible for repaying a loan who has signed and agreed to the terms in the promissory note.
Budget
Estimated cost of attendance to go to school. Usually includes tuition and fees, books and supplies, room and board, transportation and other personal expenses.
COA (Cost of Attendance)
See Cost of Attendance
CPS (Central Processing System)
See Central Processing System
Campus Based Aid
Federal Work Study (FWS), Perkins Loan and SEOG Grant.
Cancellation for Non-Payment
The date by which students must have made arrangements for payment of the semester bill.
One of the following must be completed:
-Pay tuition and fees in full.
-Have a financial aid award sufficient to meet the payment requirement.
-Pay a minumum of $300 on tuition/fees to 'hold' registration.
-Have a payment plan contract in place with Nelnet Business Solution, Inc. (FACTS).
Go to www.mnstate.edu, click on 'eservices', login (ID and PIN required)
and select 'Bills and Payment'.
-Have a Third-Party authorization on file with the MSUM Business Office.
(DVR, Military Assistance, Employee Contractual Tuition Waiver, etc.).
Capitalization
When interest is added to the loan's principal balance and future interest is calculated on the balance including the capitalized interest. A student who defers the interest on their Unsubsidized Federal Direct loan needs to understand this term and how it affects the amount they must repay: it adds up quickly.
Central Processing System (CPS)
This is where the Free Application for Federal Student Aid (FAFSA) is processed.
Citizen/Eligible Non-Citizen
You must be one of the following to receive federal student aid:
-U.S. Citizen
-U.S. National (includes natives of American Samoa or Swain's Island)
-U.S. Permanent Resident with an I-551, or I-551C (Alien Registration
Receipt Card)
If you're not in one of these categories, you must have an Arrival-Departure Record (I-94) from the U.S. Immigration and Naturalization Service (INS) showing one of the following designations:
-Refugee
-Indefinite Parole and/or Humanitarian Parole
-Cuban-Haitian Entrant, Status Pending
-Conditional Entrant (valid only if issued before April 1, 1980)
-Other eligible non citizen with a Temporary Resident Card (I-688)
You can also be eligible based on the Family Unity Status category, with approved I-797s (Voluntary Departure and Immigrant Petition), or if you have a suspension of deportation case pending before Congress. Permanent residents of the Trust Territory of the Pacific (Palau) may be eligible for federal student aid. Citizens of the Federated States of Micronesia and the Marshall Islands are eligible for Pell Grants, SEOG, or Work Study only. You are NOT eligible for federal aid if you only have a Notice of Approval to Apply for Permanent Residence (I-171 or I-464A), or if you are in the U.S. on an F1, F2, J1, J2, or G series visa.
Collection Costs
Costs the government incurs when collecting a delinquent or defaulted loan. These costs are charged to the borrower.
Consolidation
A loan program that allows a borrower to combine various educational loans into one new loan. By extending the repayment period (up to 30 years depending on the loan amount) and allowing a single monthly payment, consolidation can make loan repayment easier for some borrowers.
Co-signer
A credit-worthy individual, usually a parent or spouse, who has agreed to share the responsibility for repayment of a student loan with you.
Cost of Attendance (COA)
The total amount it should cost a student to attend school--usually expressed as a yearly figure. The cost of attendance covers tuition and fees, room and board, an allowance for books and supplies, transportation, and miscellaneous expenses.
Credits Attempted
The number of hours for which a student is officially enrolled.
Credits Earned
Includes grades designated as: A, B, C, D or P. Credits with grades of F, FN, I, IP, NC, Z and W do not count as credits earned but do count as credits attempted.
Credit to Account
Aid money such as Federal Pell Grant, Minnesota State Grant, ACG, SMART and most loans and scholarships are applied directly to the student's billing account.
Cumulative Attempted Credits
Defined as the total number of credit hours for which a student has officially enrolled during his/her attendance at Minnesota State University Moorhead and includes accepted transfer credits.
Default
Failure to repay a student loan according to the terms agreed to when you signed a promissory note. If you default, your school, the organization that holds your loan, the state, and the federal government can all take action to recover the money, including notifying national credit bureaus of your default. Your wages and/or tax returns may be garnished, and you will no longer be eligible to receive federal or state financial aid.
Deferment
An authorized period of time during which a borrower may postpone principal and interest payments. Deferments are available while borrowers are in school at least half time, enrolled in a graduate fellowship program or rehabilitation training program, and during periods of military activation, unemployment or economic hardship. Other deferments may be available depending on when and what you borrowed. Contact your lender or servicer for additional details.
Delinquency
Incidents of late or missed loan payments, as specified in the terms of the promissory note and the selected repayment plan.
Direct Lending
The federal government lends funds to eligible borrowers through the school, eliminating the role of lenders and guaranty agencies. Students repay their loans directly to the federal government. See Federal Direct Loan Program.
Direct Loan Consolidation
One or more federal education loans combined into a single loan under the Direct Loan Program. Only one monthly payment is made to the U.S. Department of Education.
Direct Loan Servicing Center
The place where Direct Loan borrowers send their loan payments. The Servicing Center can answer questions you might have about your Direct Loan. The toll-free telephone number is 1-800-848-0979.
Disbursement
The release of loan funds to the school for delivery to the borrower. Disbursements for most loans are made in equal multiple installments. Direct Loans are disbursed via Electronic Funds Transfer (EFT) which means that the net proceeds of your Federal Direct Loan will be credited directly to your tuition and fee bill. If there are excess funds after tuition and fees have been paid, the Business Office will mail overage checks or direct deposit the overage to your bank account.
Discharge (Cancellation)
The release of borrowers from their obligations to repay their Direct Loans. Borrowers must meet certain requirements to be eligible for discharges.
Disclosure Statement
Statement that is sent to the borrower of a student loan outlining the terms of the loan including the interest rate, loan fees and estimated disbursement date(s).
Electronic Data Exchange (EDE)
The exchange of application, award and payment information between the school and the Department of Education using a computerized process for the transfer of data.
Electronic Funds Transfer (EFT)
The electronic transfer of loan money from the Department of Education, a lender, or guarantor to the school. It eliminates a paper check.
EMPN (Electronic Master Promissory Note)
See Electronic Master Promissory Note
Electronic Master Promissory Note (EMPN)
A legally binding contract between the U.S. Department of Education and a borrower. The EMPN is electronically signed online with the borrower's PIN. The website is www.dlenote.ed.gov. In the EMPN, the borrower promises to repay the loan. The EMPN contains the terms and conditions of the loan, including how and when the loan must be repaid.
Emergency Loan
Short term loan available in emergency situations through the Business Office.
Enrollment Status
The number of credit hours attempted by an undergraduate student: 12+ (full-time); 9-11 (3/4-time); 6-8 (half-time); 1-5 (less than half-time). Graduate student enrollment status: 8+ (full-time); 7 (3/4 time); 6 (half-time); 1-5 (less than half-time).
Entrance Loan Counseling
A group, individual or online session during which Direct Loan borrowers receive important information about their loan obligations. Entrance counseling is required before receiving the first disbursement of loan funds. The entrance loan counseling web address is: http://www.dl.ed.gov
Exit Loan Counseling
Direct Loan borrowers who are leaving school or dropping below half-time enrollment will receive important information about their repayment obligations and update information about themselves. Exit loan counseling is encouraged but not required. The exit loan counseling web address is: http://www.dl.ed.gov
Expected Family Contribution (EFC)
An amount, determined by a formula established by Congress, that indicates how much of your (and your parents' if you are classified as a dependent for financial aid purposes) financial resources should be available to help pay for school. The EFC is used in determining your eligibility for financial aid.
Expected Parent Contribution (PC)
An estimate of the parents' ability to contribute to post-secondary educational expenses.
Expected Student Contribution (SC)
An estimate of the student's ability to contribute to post-secondary educational expenses.
FAFSA (Free Application for Federal Student Aid)
See Free Application for Federal Student Aid
An estimate of federal student aid eligibility. www.fafsa4caster.ed.gov
FWS (Federal Work Study)
See Federal Work Study
Federal Work Study (FWS)
A part-time employment program which helps provide jobs for students who are in need of earnings to meet a portion of their educational expenses.
Federal Direct Loan Program
The William D. Ford Federal Direct Loan Program, also referred to as the Direct Loan Program, is a federal program that provides loans to student and parent borrowers directly through the U.S. Department of Education. The loans are Federal Direct Stafford/Ford Loans, Federal Direct Unsubsidized Stafford/Ford Loans, Federal Direct PLUS Loans and Federal Direct Consolidation Loans.
Federal Direct Stafford/Ford Loan
Formerly the GSL (Guaranteed Student Loan) Program; a federally financed and subsidized student loan made on the basis of the student's financial need and other specific eligibility requirements. The federal government does not charge interest on subsidized loans while borrowers are enrolled at least half-time, during the six-month grace period, or during authorized periods of deferment. When repayment does begin, the interest rate of the loan depends on when the student first borrowed in the program.
Federal Direct Unsubsidized Stafford/Ford Loan
A federally financed student loan made to students meeting eligibility requirements. Students need not demonstrate financial need. 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 principal) when the loan enters repayment.
Federal Methodology
Federally approved standardized formula to determine a student's estimated family contribution (EFC) and financial aid eligibility.
Fees
All students enrolled for regular instruction are assessed mandatory comprehensive fees. Fee assessments are required by the MnSCU Board to defray costs of maintaining such essential university services as health services, co-curricular programs or activities, computer usage, event fees, student union operation and debt retirement.
Financial Aid Academic Standards
The policy of the Office of Scholarship and Financial Aid to measure quantitative, qualitative and maximum time allowed (academic progress) for financial aid eligibility. If a student fails to meet the minimum standards required by this policy, financial aid awarded to that student is suspended.
Financial Aid Counselor
A representative of the Office of Scholarship and Financial Aid that reviews a student's application, awards aid, and helps the student in all aspects of the financial aid process.
Financial Aid Package
The total financial aid a student receives. Federal and non-federal aid such as grants, loans, work study and scholarships are combined in a "package" to help meet the student's need.
Financial Need
The difference between the Cost of Attendance and the Estimated Family Contribution. This amount is your total eligibility for need-based aid from all sources, and is used in determining your aid package.
Forbearance
An authorized period of time during which the lender agrees to temporarily postpone a borrower's principal repayment obligation. Interest continues to accrue and usually must be paid during the forbearance period. Forbearance may be granted at the lender's discretion when a borrower is willing to repay their loan but is unable to do so.
Free Application for Federal Student Aid (FAFSA)
The official federal form a student must file each year. The FAFSA is used by the university to determine eligibility for Federal Student Aid including grants, loans and work study. The FAFSA is required in order to apply for any federal or state student aid including the Federal Direct Parent Loan. Apply on-line at: www.fafsa.ed.gov
GPA
See Grade Point Average
Grace Period
A six-month period before the first payment must be made on a Direct Subsidized or Unsubsidized Loan. The grace period starts the day after the borrower ceases to be enrolled at least half-time. During the grace period on the Direct Unsubsidized Loan, accumulating interest must be paid or it will be capitalized.
Grade Classification
Grade classification is based on number of credits completed at the end of each academic semester.
0-29 credits-Freshman 60-89 credits-Junior
30-59 credits-Sophomore 90+ credits Senior
Grade Point Average (GPA)
The grade point average computed by dividing the number of grade points earned in a given course or courses by the number of credits attempted. The GPA is based on MSUM grades only. Credits with grades of P, I, IP, AU or W are not included in computing the GPA. Credits with grades of F and FN are included in computing the GPA.
Graduate Student
A student enrolled at an institution of higher education in an academic program of study above the baccalaureate level leading to a Master's degree.
Graduated Repayment Plan
A plan that allows monthly loan payment amounts to start at one level and then increase every two years during the repayment period. Borrowers have up to 30 years to repay, depending on the amount they borrowed. The minimum payment must cover interest that accumulates monthly and must be at least one-half of the payment that would be required under the Standard Repayment Plan. The maximum amount may not be more than 1-1/2 times the payment that would be required under the Standard Repayment Plan.
Grant
A type of financial aid award based on need or merit that is not repaid by the student.
ISIR (Institutional Student Information Record)
See Institutional Student Information Record
Income Contingent Repayment Plan
A plan that allows the monthly loan payment amount to vary with the borrower's income. A borrower has up to 25 years to repay.
Independent Student
A student who meets one of the following conditions: twenty-four years of age or older; and orphan; a ward of the court until age 18; a veteran of the U.S. Armed Forces or currently serving active duty in the U.S. Armed Forces for purposes other than training; is married; has a dependent child; is a graduate or professional student. A student who has serious family circumstances (as determined by a financial aid counselor) may be considered independent upon appeal and providing acceptable documentation.
Institutional Student Information Record (ISIR)
The record that contains the information the student submitted to the Central Processing System.
Interest
A fee charged for the use of borrowed money. Interest is calculated as a percentage of the principal loan amount. The rate may be constant throughout the life of the loan (fixed rate) or it may change at specified times (variable rate). From October 1, 1992 to June 30, 2006 all federal education loans made to new borrowers had variable interest rates. As of July 1, 2006, all federal education loans made to new borrowers have a fixed interest rate.
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