| AwardYear: 1996-1997 EnterChapterNo: 1 EnterChapterTitle: General Program Information SectionNumber: SectionTitle: References PageNumbers: 11- 20 REFERENCES GLOSSARY ACADEMIC YEAR. A measure of the academic work to be accomplished by the student. The school defines its own academic year, but federal law and regulations set minimum standards for SFA purposes. See Chapter 3. AWARD YEAR. Spans from July 1 to June 30 of the next year. For the Federal Pell Grant and campus-based programs, eligible students are paid out of funds designated for a particular award year, such as the 1996-97 award year (July 1, 1996 to June 30, 1997). BASE YEAR. For need analysis purposes, the calendar year preceding the award year. For instance, 1995 is the base year used for determining eligibility in the 1996-97 award year. CAMPUS-BASED PROGRAMS. The Federal Perkins Loan, Federal Work-Study (FWS), and Federal Supplemental Educational Opportunity Grant (FSEOG) programs are often collectively referred to as the campus-based programs because the funds for these programs are administered directly by the schools financial aid office. CENTRAL PROCESSING SYSTEM (CPS). The Departments application data processing facility, currently located in Iowa. The CPS uses student information from the Free Application for Federal Student Aid (FAFSA) processors to calculate the students official Expected Family Contribution (EFC), and returns the students eligibility information to the FAFSA processor. COST OF ATTENDANCE (COA). Includes tuition, fees, and the students living expenses while he or she is attending school. The COA is determined by the school, using guidelines established by federal law to determine the figure. The COA, together with the students Expected Family Contribution (EFC), helps determine the students need for SFA funds. DEFAULT. Occurs when the borrower fails to repay a loan in accordance with the terms of the promissory note. See Chapter 10. ESTIMATED FINANCIAL ASSISTANCE (EFA). The amount of student financial aid the student may expect from federal, state, school, or other sources (including grants, loans, or need-based work programs). The school must consider this available assistance when determining a students eligibility for a Federal Family Education Loan. EXPECTED FAMILY CONTRIBUTION (EFC). The amount that the students family is expected to contribute toward the cost of attendance. This amount is usually based on the familys income and assets. The EFC, together with the students cost of attendance (COA), helps determine the students need for SFA funds. FAFSA. See Free Application for Federal Student Aid. FAFSA PROCESSORS. Agencies that input data from the Free Application for Federal Student Aid (FAFSA) and transmit it to the Central Processing System (CPS). Using the data received back from the CPS, the FAFSA processors generate the Institutional Student Information Record (ISIR) and the Student Aid Report (SAR). For more information, see the Counselors Handbook. FINANCIAL NEED. Generally, the difference between the students cost of attendance (COA) and the Expected Family Contribution (EFC). FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA). The application that the student must file to apply for aid from any SFA program, including the FFEL Program. The FAFSA is printed and distributed free of charge by the U.S. Department of Education. INSTITUTION. A postsecondary educational institution. In this handbook, the terms school and institution are often used interchangeably. INSTITUTIONAL STUDENT INFORMATION RECORD (ISIR). A federal output record that contains the students EFC and all the information provided by the student on the FAFSA. The ISIR can be received electronically by schools that participate in Electronic Data Exchange (EDE) system. For more information, see the Counselors Handbook. NEED ANALYSIS. The process of using a students household and financial information (derived from the financial aid application) to calculate the amount the family can be expected to contribute to educational costs. For the SFA Programs, the need analysis calculation is defined by law and results in the Expected Family Contribution (EFC). OVERAWARD. Generally, any campus-based or FFEL funds disbursed in excess of the students financial need. (The overaward concept does not apply to the Federal Pell Grant Program.) OVERPAYMENT. Any payment of a Federal Pell Grant, FSEOG, Federal Perkins Loan, or SSIG that exceeds the amount for which the student was eligible. An overpayment may be the result of an overaward, an error in calculating the cost of attendance (COA) or the Expected Family Contribution (EFC), or a students failure to meet any other eligibility criteria, such as citizenship or enrollment in an eligible program. PROFESSIONAL JUDGMENT. While the Expected Family Contribution (EFC) calculation is defined by law, the law does provide some flexibility. The financial aid administrator can make individual adjustments, based on his or professional judgment, to override a students dependency status (from dependent to independent), to adjust the components of a students cost of attendance (COA), and to adjust the data elements used to calculate the students EFC. Such adjustments must be made on a case-by-case basis, and the reasons for the adjustment must be documented in the students file. See the Counselors Handbook for more information. PROMISSORY NOTE. A legal document that must be signed to obtain a loan. By signing, the borrower promises to repay the loan, with interest, in specified installments. The promissory note also includes any information about the grace period, deferment or cancellation provisions, and the students rights and responsibilities with respect to the loan. RESOURCES. The amount of student financial aid the student may expect from federal, state, school, or other sources (as defined in the campus-based regulations). The school must consider this available assistance when determining a students eligibility for campus-based funds. SCHOOL. A postsecondary educational institution. In this handbook, the terms school and institution are often used interchangeably. SFA PROGRAMS. The Student Financial Assistance (SFA) Programs administered within the U.S. Department of Education. These programs include Federal Pell Grants, Federal Supplemental Educational Opportunity Grants, Federal Work-Study, Federal Perkins Loans, Federal Family Education Loans, Federal Direct Loans, State Student Incentive Grants, and Byrd and Douglas Scholarships. STUDENT AID REPORT (SAR). The federal output document printed by the FAFSA processor and mailed to the student. The SAR contains the familys financial information and other information as reported by the student on the FAFSA. The students eligibility for aid depends on the Expected Family Contribution (EFC) that is derived by the processor and printed on the front of the SAR. Schools that participate in the Electronic Data Exchange (EDE) and other services offered by the Department may receive the information on the SAR through these services. For more information, see the Counselors Handbook. VERIFICATION. The Central Processing System will select a certain percentage of FAFSAs, some randomly and others based on certain edit criteria, for data verification. Schools must verify certain data reported on these FAFSAs, using documentation provided by the student. (Many schools also choose to verify additional applications beyond those selected during processing.) For more information, see the Verification Guide. OTHER REFERENCES The following lists provide the names and telephone numbers of the Automated Data Exchange Specialists (below), the Pell Grant Program Financial Management Specialists (page 1-16), and the Campus-Based Programs Financial Management Specialists (page 1-17). The Department of Educations 10 regional office addresses and telephone numbers also appear (pages 1-18 and 1-19), followed by a map showing which states are covered by each region (page 1-20). [[The lists of other references on pages 1-15 through 1-19 and the map on page 1-20 are currently unavailable on the SFA BBS. Please reference your paper handbook for additional information.]] |