Common Financial Aid Terms and Information
Accrue
Interest on Unsubsidized Stafford Loans will accumulate if the borrower chooses to defer interest payments until after graduation. The accumulated interest will increase the amount you will have to repay.
Aggregate Loan Limits
The maximum amount that you may borrow in your lifetime.
COA Budget (Also known as Cost of Attendance Budget)
The total cost of attending school for one academic year, including tuition, books and supplies, and living expenses. The Student Financial Services office calculates standard budgets for all students yearly. Cost of attendance budgets can be obtained from the Student Financial Services office.
Deferment of Loans
An approved postponement of loan repayment for a specified period.
Disbursements
A payment; for example, a payment from a loan program to you for a specific semester is a disbursement.
Disclosure Statement
A statement mailed directly to the borrower from the servicer once the loan has been made. The disclosure statement will tell the borrower what the interest rate on the loan currently is, in addition to other pertinent information.
Entrance Counseling
A form that explains the responsibilities and rights involved in borrowing student loans. Entrance Counseling must be completed before you can get a loan.
Expected Family Contribution (EFC)
The amount that you and your family will be expected to contribute toward your educational expenses (budget), as determined by the federal government from the information on your FAFSA. (For a booklet explaining the formula used to determine EFC, call 1-800-4-FED-AID.)
FAFSA (Free Application for Federal Student Aid)
The form that you must complete so that a federal processor can determine your EFC and Cornerstone University can determine your financial need. The form is available online at www.fafsa.ed.gov; a worksheet may be obtained from the Student Financial Services office.
Fees
The university's charges for instruction (tuition) or general costs that are billed directly to the student on a semester basis.
Financial Aid
All forms of financial assistance available to meet the cost of attendance, including scholarships and grants (gift programs) and work programs and loans (self-help programs).
Financial Need
The difference between the cost of education at Cornerstone University (student budget) and expected family contribution (EFC).
Gift Aid
Funds which are awarded to students to help with college costs with no obligation for repayment on the part of the student.
Grant
Gift aid awarded to a student on the basis of financial need.
Independent Student
For financial aid purposes you are considered dependent unless you meet one of the following criteria: 1) you are 24 years of age by January 1 of the award year; 2) you are married; 3) you are a graduate or professional student; 4) you have legal dependents other than a spouse; 5) you are an orphan or ward of the court; or 6) you are a veteran.
Merit
Merit awards are given for superior academic performance or talent, typically demonstrated by grade point average or performance in a given field.
Package
The total combination of scholarships, grants, work, and loans awarded to a student.
Promissory Note
The binding legal document you sign when you get a student loan. It lists the terms under which you are borrowing and the repayment terms to which you are agreeing, including information about interest rate, deferment, and cancellation provisions. You should read and keep this document for your records.
Scholarship
Gift aid awarded to a student on the basis of superior academic performance or talent.
Self-help Programs
Programs which allow a student to earn funds (Federal Work-Study Program) or to borrow funds (loan programs) to help with college costs.
Subsidized / Unsubsidized
A subsidized loan is one for which the government pays the interest while you remain in school at least half-time. An unsubsidized loan is one in which you are responsible for the interest which accrues while you are in school.
Verification
The process by which Cornerstone University confirms the accuracy of information supplied on a percentage of FAFSAs each year as required by federal regulation. If you are selected for verification, you and your family will need to supply additional information and copies of documents, usually including tax returns.
Work Study
Work Study funds are not applied to the tuition bill; they are paid to the student in the form of a paycheck for work performed on-campus. Students must find their own jobs by applying at Career Services or with a specific department. Work study eligibility does not guarantee an on-campus job.
