Financial Aid Satisfactory Academic Progress Policy

Ability to Benefit: Basis on which a student without a high school diploma or a recognized equivalent, may qualify for federal student financial assistance. The Department of Education maintains a list of approved tests for measuring a student’s ability to benefit from the educational program the student seeks.

 

Academic Year: A measure of academic work to be performed by the student, subject to definition by the school.

 

Accrued Interest: The interest that accumulates on the unpaid principal balance of a loan.

 

Alternative Loans: Alternative loans are loans lent by banks, credit unions and private lending companies rather than the federal government and are specifically for education purposes. Many alternative loans mimic federal Stafford loans and are below market rate.

Our preferred lenders offer a comprehensive range of alternative loans.

 

Annual Percentage Rate (APR.): The interest maintained on a loan for a one year period.

Campus-Based Programs: Three federal student aid programs that are administered directly by the schools financial aid office (the Perkins loan, the Supplemental Educational Opportunity Grant, and the Federal Work-Study program).

Capitalization: The addition of unpaid accrued interest applied to the principal balance of a loan which increases the total outstanding debt.

 

Census Date: Date in each semester after which students cannot withdraw from a subject without paying a fee for that subject. The census date is usually about 12 days after the first day of the semester for CCA..

Colorado Work-Study (CWS): A state funded aid program that provides jobs for undergraduate students who are Colorado residents. Eligibility is based on need.

Colorado No-Need Work-Study (CONN): A state funded aid program that provides limited funds for jobs for undergraduate students who are Colorado residents. Eligibility is not based on need.

Colorado Student Grant (CSG): A need-based grant provided by the Colorado General Assembly for undergraduate students who are Colorado residents and enrolled in six or more credit hours.

College Access Network (CAN):

Colorado Opportunity Fund (COF): 

Consolidation: Combining numerous education loans into a new loan with a new payment schedule and interest rate.

 

Consortium Agreement:

Cost of Attendance: A figure, estimated by the school, that includes the cost of tuition, fees, room, board, books, and supplies as well as an allowance for transportation and personal expenses. This figure is compared to the Expected Family Contribution to determine a student's aid eligibility. Also known as the student budget.

Default: The failure to repay a loan according to the terms of the promissory note.

 

Deferment: An approved temporary suspension of loan payments based on certain events and criteria.

 

Delinquency: The failure to make scheduled monthly loan payments when they are due.

Dependent Student: A classification for aid purposes for a student who is considered to be dependent upon his or her parent(s) for financial support.

Disbursement: A transaction that occurs when a lender releases loan funds.

 

Disclosure Statement: A statement of the actual cost and terms of the loan including interest rate and additional finance charges.

 

Expected Family Contribution (EFC): The dollar amount that a family is expected to pay toward a student's educational costs. This federal formula is based on family earnings, assets, number of students in college and size of family.

FAFSA: See Free Application for Federal Student Aid.

Family Contribution: Another name used to refer to the Expected Family Contribution.

Federal Family Education Loan Programs (FFELP): The Federal Family Education Loan Programs formerly know as the Guaranteed Student Loan Programs (GSL). This federally funded program provides low-interest loans to undergraduate and graduate students and is administered by a bank or other lending institution, which can sometimes be the college itself. In most cases, repayment does not begin until six months after the student graduates or leaves school and there are no interest charges while the student is in school. For new borrowers, the interest rate is variable, currently with a 8.25% cap. There are two types of Stafford loans: subsidized and unsubsidized. The subsidized Stafford loan is need-based and the government pays the interest while the student is in school. The unsubsidized Stafford loan is non-need-based and can be taken out by virtually all students. In many cases, students can elect to let the interest accumulate until after they graduate.

Federal Methodology: The generally accepted method used to calculate a family's expected contribution to college costs for federal aid purposes. Depending on the individual college's policy, the federal methodology may also be used to determine eligibility for money under the school's control.

Federal Work-Study (FWS): A federally funded aid program that provides jobs for students. Eligibility is based on need.

FFELP: See Federal Family Education Loan Programs

Financial Aid: A general term used to refer to a variety of programs funded by the federal and state governments as well as the individual schools to assist students with their educational costs. While the names may vary, financial aid comes in three basic forms: (1) gift aid (grants and scholarships) which do not have to be paid back (2) student loans, and (

Financial Aid Officer: An administrator at each school who determines whether a student is eligible for aid and if so, the types of aid to be awarded.

Financial Need: The amount of aid a student is eligible to receive. This figure is calculated by subtracting the Expected Family Contribution from the Cost of Attendance.

Full-Time Enrollment Status (F): Refers to students enrolled in 12 or more credit hours in a semester.

 Less-Than-Half-Time Status (L):  Refers to students enrolled in less than six credit hours in a semester.

Need: The amount of aid a student is eligible to receive. This figure is calculated by subtracting the Expected Family Contribution from the Cost of Attendance.

Forbearance: The approved temporary suspension of loan payments due to a financial hardship, during which interest continues to accrue.

 

Free Application for Federal Student Aid (FAFSA): The application students must complete to apply for virtually all forms of financial assistance, including the FFEL Loans.

Gift Aid: Financial aid, usually a grant or scholarship, that does not have to be paid back and that does not involve employment.

Grace Period: The period after a student either graduates or leaves school and before loan payments must begin.

 

Grants: Gift aid  that does not have to be paid back, that is awarded to students based on financial need. Grant programs can be funded by the federal and state governments as well as the individual schools.

 

Guaranty Agency: State agency or private nonprofit institution that insures student loans and administers the Federal Family Education Loan Program for the federal government.

 

Guarantee Fee: An insurance premium deducted from the borrower’s loan proceeds before disbursement and is paid to the guaranty agency that insures the loan. By law the fee cannot exceed 1% of the loan amount.

Guaranteed Student Loans (GSL): See Federal Family Education Loan Programs

Guarantor: The agency or institution that insures up to permissible limits against loss to lenders in the event of a default in the FFELP.

Half-Time Enrollment Status (H): Refers to students enrolled in 6, 7, or 8 credit hours in one semester.

Holder: The institution with legal title to a borrower’s loan. The holder may be the lender that originally made the loan, a secondary market to which the lender has sold the loan, or in the event of a default, the guaranty agency.

Independent Student: A student who, for financial aid purposes, is not considered dependent on his or her parent(s) for support. Also known as a self-supporting student. A student must be at least 24 years of age to be considered independent.

Interest: The dollar amount associated with borrowing money.

Institutional Forms: Supplemental forms required by the individual schools to determine

Lender: The institution that provides the money to be borrowed through the student loan program.

 

Origination Fee: A fee charged by the federal government and deducted from loan proceeds before disbursement partially to offset administrative costs of the Federal Family Education Loan Program.

 

Pell Grant: A federally funded need-based grant program for first-time undergraduate students (i.e., the student has not as yet earned a bachelor's or first professional degree). Funds from this program are generally awarded to lower- and lower-middle-income families
 

Principal: Amount a person borrows (which may increase because of capitalized interest) and the amount on which interest is paid.

 

Parent Loans for Undergraduate Students (PLUS): A federally subsidized educational loan program in which parents can borrow up to the total cost of attendance minus any financial aid received for each child in an undergraduate program. Eligibility is not based on need. The interest rate is variable, currently with a 9% cap.

 

PLUS Loans: See Parents Loans for Undergraduate Students

 

Promissory Note: The legal document which the borrower signs to obtain the loan proceeds and which specifies the terms of the loan, the interest rate, and the repayment provisions.
 

SAR: See Student Aid Report.

 

Scholarships: Gift aid that do not usually have to be paid back and is based on merit or a combination of need and merit. A separate application process is usually required.

 

Self-Help: The portion of the aid package relating to student loans and/or work-study.

 

Servicer: An organization that acts for the lender to administer their student loan portfolio and is paid a fee to do so.

 

Student Aid Report (SAR): A multi-page report that is issued to students who have submitted a completed FAFSA. The SAR notifies students of their eligibility for federal student aid.

Student Budget: See Cost of Attendance.

Subsidized Stafford Loan: : Loans on which the Federal Government pays the interest until the student enters repayment as well as when the loan has been granted a deferment, during the deferment period the government pays the interest. See Federal Family Education Loan Programs.

Supplemental Educational Opportunity Grant: A federally funded need-based grant program for undergraduate students that is awarded by the school's financial aid office.

Three-Quarter Time Enrollment Status: Refers to students enrolled in 9, 10, or 11 credit hours in one semester.

Undergraduate: A student who has not yet received a bachelor degree.

 

Unsubsidized Stafford Loan: Loans on which the student is responsible for paying the interest that accrues on the loan from the date of disbursement until the loan is paid in full, regardless of enrollment status. See Federal Family Education Loan Programs.

Verification: A process in which the financial aid office requires additional documentation to verify the accuracy of the information reported on the aid applications.

Work-Study:  See Federal/State Work-Study.