Help - Glossary
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
Packaging
The process of determining the types and amounts of financial aid awards (loans, grants, scholarships, and employment) and offering those awards to a student.Parent
A student's biological or adoptive mother or father or the student's stepparent, if the biological parent or adoptive mother or father has remarried at the time of application.Parent Loans for Undergraduate Students (PLUS)
PLUS loans enable parents to borrow federal funds to pay the education expenses of each child who is a dependent undergraduate student.Parent's Contribution
The amount parents can be expected to contribute each year to the cost of the student's education as determined by the Federal Methodology.Pass-Through
An school may enter into a contract with a third party to provide institutional housing or board and credit FSA funds to the student's account to pay for institutional housing or board provided by the third party. In this case, the school is receiving the FSA funds from GAPS and passing the funds through the school's accounting system to the third party.
Only when a school enters into a contract with a third party to provide institutional housing or board may the school credit Title IV funds to a student's account to pay for those charges.Past Due Amount
The current amount delinquent on the loan.Payee
The recipient (organization or individual) of Department of Education funds who is responsible for accounting for those funds. The payee may be a single entity, such as a college, or a central finance office which requests funds and prepares financial reports for several organizations within its system.Payment
Funds that GAPS deposits into payees accounts. The payment must be disbursed within three business days.Payment Analyst (PA) Formerly, Reimbursement Analyst
An FSA employee that ensures that schools have accurately determined FSA eligibility of and payment to each student, with sufficient funds in the school's GAPS account, and submits documentation to that effect.Payment Period
A school-defined length of time for which financial aid funds are paid to a student. For programs using academic terms (semester, trimester, or quarter), a payment period is equal to a term. For programs not using academic terms, schools must designate at least two payment periods within an academic year that meets all applicable regulations.Payoff Amount
The total loan amount required to pay off a specific loan. This amount includes the loan principal, capitalized interest, borrower accrued interest, billed interest, any late charges, any returned check charges, any refinancing fees, and any collection costs. In order to allow time for the borrower to forward a check in the mail and not leave a small outstanding balance, the payoff amount is calculated based on what the accrued interest will be 10 days from the date the payoff amount is requested.Payoff Date
The date on which the loan payoff calculation is based.Peak Enrollment
A period of peak enrollment occurs when at least 25% of a school's students start classes during a given 30-day period.Peer Evaluation
An objective review of an institution's policies, procedures, and practices by a financial aid administrator from another school or by a consultant. Peer evaluations allow firsthand observations and comparisons of how similar institutions carry out financial aid responsibilities.Performance Period
The period of time between the grant award begin date and the grant award end date during which the grantee satisfies the requirements of the grant award. During this time, a payee may make expenditures, request funds, modify payment requests, and adjust drawdown amounts on the award. Once the performance period ends, a grant award begins the closeout process.Period of Enrollment
The period for which a Stafford or PLUS loan is intended. Except at nonterm schools, the period of enrollment must coincide with a bona fide academic term established by the school for which institutional charges are generally assessed (e.g, semester, trimester, quarter, length of the student’s program or academic year). Also referred to as the loan period.Perkins Loans
See Federal Perkins Loans.Personal Identification Number (PIN)
An identifier that allows students and parents to access their personal information in ED systems, The PIN is also used to electronically sign the FAFSA and make corrections electronically to data submitted. A PIN should always be protected, and never provided to anyone other than the person for whom it was created.Policies And Procedures Manual
An in-house manual that helps an institution effectively and consistently manage financial aid using a set of written policies and procedures. Although ED does not require such a manual, it strongly recommends that a school compile one, especially since federal regulations require schools to have, maintain, and disclose certain policies in writing.Portable Document Format (PDF)
A file format developed by Adobe Systems, Inc. that presents a document electronically as it would appear on paper.Posting
Transferring debits and credits from a journal to the proper control and subsidiary ledger accounts. Each amount recorded in the debit column of a journal is posted by entering it on the debit side of the appropriate ledger account, and each amount recorded in the credit column of the journal is posted by entering it on the credit side of the appropriate ledger account.Postscreening
A process subsequent to prescreening whereby the NSLDS database is scanned regularly to check for changes to the eligibility of federal student aid applicants. These changes include loan aggregates and the student’s moving into or out of a default or overpayment status, and are reported to the CPS, which in turn creates new record transactions and generates new SARs and ISIRs.Postsecondary Institution
An institution providing education beyond the high school level. The term refers to trade and technical schools, two-year colleges, community colleges, and four-year colleges and universities.Postsecondary Education Participants System (PEPS)
The Federal Student Aid (FSA) management information system for all organizations that have a role in administering federal student financial aid and other Higher Education Act programs. It maintains eligibility, certification, demographic, financial, review, audit and default rate data about schools, lenders, and guarantors participating in the FSA programs.Potential Overaward (POP)
Federal Pell Grant recipients are allowed to receive a maximum of one full Scheduled Pell Grant during an award year. The COD System is programmed to calculate the percentage of Scheduled Pell Grant used each time a school reports a disbursement to the student. Any amount exceeding 100% of a full Scheduled Pell Grant represents an overaward situation. The COD System allows a potential overaward situation to exist for 30 days and sends a warning to all schools involved before reducing all of the students Pell Grant disbursements for that award year to zero.Prepaid Tuition Plan
A qualified tuition program through which one buys tuition credits of certificates for a future date at current prices.Prepayment
Paying off all or part of a loan before it is due.Prescreening
The initial match of FAFSA data that CPS performs against the NSLDS database to identify applicants for federal student financial aid who are in default on an existing FSA loan; who owe overpayments on Federal Pell Grants, FSEOGs, and/or Perkins Loans; or who have exceeded maximum loan limits. Prescreening is performed before the CPS processing of FAFSA data is complete.Primary Reserve Ratio
Under the financial responsibility regulations, the primary reserve ratio is:Prime Rate
The prime interest rate is the rate charged by commercial financial institutions for short-term loans to corporations or individuals whose credit standing is sufficiently high that little risk to the lender is involved in making the loan. This rate fluctuates based on economic conditions and may be different among financial institutions. The prime rate serves as a basis for the interest rates charged for other higher-risk loans.Principal Balance
The outstanding amount of the loan on which the lender charges interest. As the loan is repaid, a portion of each payment is used to satisfy interest that has accrued and the remainder of the payment is applied to the outstanding principal balance.
For proprietary schools:
Adjusted Equity
Total Expenses
For private, nonprofit schools:
Expendable Net Assets
Total Expenses
For further definitions and other information about the Net Income Ratio, refer to 34 CFR 668 - Subpart L, Appendix A (proprietary) and Appendix B (private, nonprofit).Prior-Year Recoveries
Funds a school recovers in a given award year from money disbursed in prior award years. Institutions must adjust award expenditures and administrative cost allowances (ACAs) in award years in which recoveries are made.Private Loans
Private loans provide supplemental funding when other financial aid does not cover costs. Banks or other financial institutions and schools offer these loans (not sponsored by government agencies) to parents and students.Professional Judgment (PJ)
A provision in the Higher Education Act allowing financial aid administrators to adjust the data elements used to calculate the student's EFC. The exercise of professional judgment may increase a student's eligibility for financial aid. Professional judgment can be used only on a case-by-case basis, and the reason must be documented in the student's file.Program Participation Agreement (PPA)
A written agreement that must be signed by both a top official at an institution and ED that permits the institution to participate in one or more FSA programs. The signed agreement makes the institution's initial and continued eligibility to participate in FSA programs conditional on compliance with all provisions of the applicable laws and program regulations. This agreement may have to be updated periodically due to changes at the institution. Schools must apply for recertification at regular intervals.Program Review
The process in which the management of one or more federal financial aid programs at an institution is reviewed by ED or a guaranty agency. A program review assesses the institution’s compliance with federal laws and regulations and its own school policies. The process may also review the institution's overall management and administrative capabilities.Program Review Exceptions
Institutional policies, procedures, or actions related to federal student financial aid programs cited in a program review report as being contrary to federal laws or regulations that govern the programs. Also referred to as findings.Promissory Note (P-Note)
The promissory note is the legally binding document that is evidence of a borrower's indebtedness to the school (for Perkins Loans), the lender (for FFEL program loans) and the federal government (for Direct Loans).Proprietary School
Post-secondary schools that are private and are legally permitted to make a profit. Most proprietary schools offer technical and vocational programs.Proration
A reduction of the standard annual loan limit for an undergraduate student. Proration of the loan amount is required if the student's program, or the remainder of the student's program, is less than a full academic year in length.
