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The following glossary listing contains definitions/descriptions of terms that are related to Federal student aid Title IV programs and/or acronyms..
The terms are listed according to alphabetical order. You can select the All link to view a listing of all of the glossary terms, or you may select the letter equal to the first letter of the term.
Glossary
Ability to Benefit (ATB)
In order for a student to be eligible for Title IV program assistance, a student must have earned a high school degree, its equivalent,completed home schooling, or be beyond the age of compulsory school attendance and pass an independently administered examination as approved by the U.S. Secretary of Education.Academic Period
A measured term of enrollment(such as a semester, quarter, trimester, or clock or credit hour).Academic Year
A period that begins on the first day of classes and ends on the last day of classes or examinations and that is a minimum of 30 weeks (except as provided in 34 CFR 668.3) of instructional time during which, for an undergraduate educational program, a full-time student is expected to complete at least: (a) 24 semester or trimester hours; or (b) 36 quarter hours in an educational program whose length is measured in credit hours; or 900 clock hours in an educational program whose length is measured in clock hours.Acceleration
When the holder of a loan demands immediate repayment of the entire loan, including any late charges, collection costs and accrued interest. In the Federal Perkins Loan program, a school may accelerate a loan if the borrower does not: (a) make a scheduled repayment on time; or (b) file cancellation or deferment form(s) with the institution on time.Accounting Period
A time period for which financialrecords are maintained and at the end of which financial statements are prepared. See Financial Statement.Accural Basis
The type of accounting under which incomes are recorded when earned (regardless of when cash is actually received) and expenses are recorded when liabilities are incurred (regardless of when cash is actually expended).Accrued Interest
Interest that accumulates on the unpaid principal balance of a loan.Accrued Salaries
Wages earned between the last pay date and the end of the accounting period being reported, but not yet paid to the appropriate students. Unpaid student wages are considered a school liability.Actual Disbursement Record
A disbursement record submitted to the COD System in order to request or substantiate funding. Actual Disbursement Records post to a student/borrower's award (loan or grant).Actual Interest Rate
The annual interest rate a lender charges on a loan, that may be equal to or less than the applicable, or statutory, interest rate on that loan.Additional Unsubsidized Federal Stafford Loan
The additional amount of unsubsidized Stafford loans available to independent undergraduate students, graduate/professional students, and dependent undergraduate students whose parents are unable to obtain a Federal PLUS Loan.Adjusted Gross Income (AGI)
All taxable income less IRS allowable adjustments to income. This figure is drawn from an individual's federal tax return.Adjusting Entry
A journal entry made for purposesof correcting an error (such as a transfer of funds between accounts) or recording an accrual (such asearned, but unpaid, student payroll at the end of an accounting period).Administrative Cost Allowance (ACA)
The allowance paid to schools by the Department of Education for participating in the Federal Pell Grant Program and the Campus-Based programs. This is money paid to schools to offset some of the cost of delivering financial aid to students.Administrative Relief Request
Generally, a school may not make a late disbursement later than 120 days after the date the student becomes ineligible. However, on an exception basis, the Department may approve a school's request to make a late disbursement after 120 days if the reason the disbursement was not made during the 120-day period was not the fault of the student or parent. See also Extended Processing Request.Administrative Offset
An offset assessed by ED against a Title IV participating school to collect program review, audit, and formal fine debts. ED withholds a portion of a school's Grant Administration and Payment System (GAPS) authorized payments and applies them toward the school's debt.Administrative Wage Garnishment
Process by which a guarantor (including ED), under federal law, may intercept a portion of the wages of a borrower with a defaulted FSA loan.Advance Payment Method
Under this payment method, a school may submit a request for funds to ED before disbursing aid to eligible students.Aggregate Loan Amount
The total amount disbursed (less any amount repaid or cancelled) to a borrower under a given loan type throughout the borrower's academic career. This amount must not exceed applicable total loan limits, which are based on the students graduate/undergraduate status.Aging of Drawdown
The process of tracking the time elapsed from the date funds were drawn down to the date a school fully substantiates the drawdown by submitting actual disbursement records.American Institute of Certified Public Accountants (AICPA)
American Institute of Certified Public Accountants (AICPA)Aid Package
A combination of financial aid (scholarships, grants, loans, and/or work-study) assembled by the financial aid office of a college or university for an eligible recipient.Allocation
A specific sum of money awarded to an institution for use during a specific period. Campus-Based funds (Federal Supplemental Educational Opportunity Grant [FSEOG], Federal Work-Study [FWS], and Federal Perkins Loan) are allocated to a school on an award-year basis. An allocation may also be referred to as obligation, award authorization, grant authorization, or Document Number.Allowable Charges
Educational expenses that a student incurs for which a school may credit a student's account with FSA funds. These charges may be credited to a student's school account and paid using FSA funds. These charges may include current charges for tuition and fees and room and board (if the student contracts with the school for these services). Other current charges that a student incurs for educationally related activities may be considered allowable charges if the school obtains the students authorization (or parent's authorization for PLUS Loan funds) to have such charges paid with FSA funds. Allowable charges may also include certain minor charges for the previous award year. See Current Charges.Amortization
The process of repaying a loan over an extended period of time through periodic installment payments of principal and interest.Annual Award
The maximum Pell Grant a student would receive during a full academic year for a given enrollment status, EFC, and COA. (For a full-time student, the annual award will be the same as the Scheduled Award.)Annual Loan Limit
The maximum amount that a student may borrow at a particular grade level in one academic year.Annual Percentage Rate (APR)
Designed to measure the true cost of a loan, this is the equivalent interest rate including all added costs, e.g., fees and interest over the term of the loan. Usually expressed as a percentage.Anticipated Completion (Graduation) Date
The date on which a student is expected to complete an academic program.Anticipated Disbursement Record
Disbursement information submitted to COD on either an Edit Only record or an Origination Record that is not intended to request or substantiate funding. An anticipated disbursement does not post to a student/borrowers award (loan or grant).Applicable Interest Rate
The maximum annual interest rate that a lender may charge on a loan. Sometimes referred to as the statutory interest rate.Appropriation
At the federal level, a congressional legislative act allocating a specific amount of public funds to be spent for a specific purpose during a fiscal year or award year. The dollar amount appropriated may be equal to or less than (but not more than) the total amount permissible under the authorizing statute.Assignment
A school's transfer of a defaulted National Defense Student Loan, National Direct Student Loan (NDSL), or Federal Perkins Loan to ED for collection. Once ED accepts a loan, it acquires all rights, title, and interest on the assigned loan. In certain cases, guaranty agencies also assign defaulted FFEL Program loans to ED.Audit
An independent examination of a school's financial transactions, accounts, reports, and compliance with applicable laws and regulations.Audit Exceptions
Actions identified through an audit that are not in compliance with federal guidelines. These are often referred to as Audit Findings.(The) Audit Guide
A manual to be used by independent auditors performing audits of FSA funds at schools.Audit Report
A report prepared by an auditor after a federal audit is performed. In a nonfederal audit, this report is prepared by an auditor or audit firm according to the guidelines provided in the Audit Guide or according to OMB Circular A-133.Audit Trail
A clear, easy-to-follow path from summary reports and ledgers back to lower-level summary information and primary documentation of individual transactions.Authorization (Legislative)
At the federal level, a congressional legislative act that establishes a program, specifies its general purpose and conduct, and unless open-ended, sets a ceiling for the dollar amount that can be used to finance it. An authorization must be enacted before dollar amounts can be appropriated for program spending.Authorization (Spending)/Award
The approved expenditure level for a FSA program for an award year. Each award year, ED notifies participating schools of their authorized levels of expenditures for the Federal Pell Grant Program and the Campus-Based programs in which it participates. A legal document, issued by a program office or by the Grant Policy Oversight Staff, obligating the Department to provide funds, through GAPS, in support of education programs. Also used to refer to the funds themselves.Authorizing Official
The individual in the payees organization who has the authority to approve those individuals who can request funds from the Department of Education. The chief financial officer is the authorizing official for most organizations.Automated Clearinghouse (ACH)
A computer-based clearing and settlement operation, often operated by a Federal Reserve Bank, established for the exchange of electronic transactions among participating depository institutions. Such electronic transactions can be substituted for paper checks used to make recurring payments, such as payroll or preauthorized insurance premiums. The U.S. Treasury uses the ACH extensively to pay certain obligations of the government.Automatic Debit
The automatic deduction of funds from the borrower's checking or savings accounts to cover monthly education loan payments. Borrowers may receive a 0.25 percentage interest rate reduction on eligible loans during active periods of repayment as long as payments are made on time.Automated Suspension of Funds
The automated decrease of an allocation (authorization amount) listed in the Grant Administration and Payment System (GAPS). This decrease occurs when an inactive award (allocation) is closed. As a result, the school must adjust its own expenditure records for that allocation to the appropriate disbursement amount.Automated Voice Response (AVR)
An option for placing requests for automated clearinghouse (ACH) payments through a service bureau. This request is made using a touch-tone telephone. It represents one of two payment-request modes available to schools.Available Balance
The difference between an obligation and net drawdowns for Pell Grants. Available balance does not include obligations supported by accepted actual disbursements.Average Daily Balance (ADB)
The sum of unpaid principal balance outstanding on all qualifying loans at each actual interest rate for each day of the quarter, divided by the sum of the number of days in the quarter.Award
As a noun, a specific amount of financial assistance to pay for education costs offered to a student through one or more financial aid programs. As a verb, approving financial assistance to students. A participating school makes a determination of the amounts and types of assistance it has available to offer to the student along with any other types of assistance the student may have received or will receive. Under 34 CFR 668.16(h), the school is required to provide information about the source and amount of each type of aid offered.Award Letter
An official document issued by a financial aid office listing the types and amounts of all the financial aid awarded to the student. Generally, the award letter includes information about the cost of attendance and terms and conditions for the financial aid.Award Periods
Varying by program, these periods include: Performance Period, Liquidation Period, Suspension Period, and Closeout Period.Award Year
The time period from July 1 of one year through June 30 of the following year for which financial aid awards are made. The award year differs from the federal fiscal year (October 1 through September 30). FFEL and Direct Loan funds are not tied to an award year.
