Federal Student Aid Handbook Glossary

Under the 150% limit on Direct Subsidized Loan eligibility, new borrowers on or after July 1, 2013 could not receive Direct Subsidized Loans for a period of time (measured in academic years) that exceeded 150% of the published length of their program of study. This limitation on Direct Subsidized Loan eligibility was commonly referred to as “SULA” (“subsidized usage limit applies”). The SULA provisions were repealed by the FAFSA Simplification Act effective with the 2021-22 award year.

The point at which a change in ownership interests must be reported to the Department. That is, when an owner acquires a total interest of 25% or more, or when an owner of 25% or more increases or reduces that interest.

FSA Handbook, Volume 2, Chapter 5

Notification to the Internal Revenue Service (IRS) prior to executing any agreement to disclose federal tax information (FTI) to a contractor, at least 45 days prior to the disclosure of FTI.

The requirement that a proprietary school must derive at least 10% of its revenues for each fiscal year from sources other than federal funds or be subject to sanctions.

FSA Handbook, Volume 2, Chapter 4

See Circular A-133

An identifying number assigned by DHS to identify and keep track of individuals who have been or are in contact with the immigration process. Used by the Department to verify the immigration status of noncitizens applying for federal student aid.

Administrative Actions and Appeals Service Group

American Association of Collegiate Registrars and Admissions Officers

Adjusted Available Income

Administrative Cost Allowance

The criteria schools must use to determine whether a student has withdrawn. For a school that is required to take attendance, the withdrawal date is always the last date of academic attendance as determined by the school from its attendance records. A school that is not required to take attendance may always use as a withdrawal date a student’s last date of attendance at an academically related activity. Academic attendance and attendance at an academically-related activity must include academic engagement.

FSA Handbook, Volume 5, Chapter 2

The way in which a school structures its academic programs and measures progress over the program's length. For purposes of the Title IV programs, academic calendars may be one of the following types:

FSA Handbook, Volume 3, Chapter 1

Active participation by a student in an instructional activity related to the student’s course of study that is defined by the institution in accordance with any applicable requirements of its state or accrediting agency. There are various applications of the term “academic engagement” throughout the Title IV program regulations.

FSA Handbook, Volume 2, Chapter 2

For a program that measures program length in credit hours,

For a program that measures program length in clock hours,

FSA Handbook, Volume 3, Chapter 1

Demand for immediate repayment of the entire outstanding balance of a loan.

Once a borrower completes an MPN, it is examined in the Common Origination and Disbursement (COD) System for completeness. If, during processing, COD finds that all required fields on the MPN have been completed correctly, COD will accept the MPN. An accepted MPN is one of the criteria required for a loan to be booked. See Booked Direct Loan.

A card, code, or other means of access to a financial account, or any combination thereof, that may be used by a student or parent to initiate electronic fund transfers.

A record in the general ledger that is used to collect and store similar information. For example, a school will have a cash account in which every transaction involving cash is recorded.

Username and password used to log in to all Federal Student Aid products and tools on StudentAid.gov.

Journals, ledgers, and other records, such as spreadsheets, that support financial statements. It may be in computer-readable form or on paper.

Records of initial accounting entries and supporting records, such as checks and records of electronic fund transfers; invoices; contracts; general and subsidiary ledgers; journal entries and other adjustments to the financial statements that are not reflected in journal entries; and records, such as work sheets and spreadsheets, supporting cost allocations, computations, reconciliations, and disclosures.

A codification prepared by the Financial Accounting Standards Board (FASB) that reorganizes the thousands of U.S. Generally Accepted Accounting Principles (GAAP) pronouncements into roughly 90 accounting topics and displays all topics using a consistent structure. It also includes relevant U.S. Securities and Exchange Commission (SEC) guidance that follows the same topical structure in separate sections in the ASC.

Debts due from customers from sales of products and services reported as a current asset.

The status of public recognition that a national accrediting agency recognized by the Department grants to an institution or educational program that meets the established requirements.

The accounting method under which revenues are recognized on the income statement when they are earned (rather than when the cash is received).

Automated Clearinghouse

Audit Control Number

The cost of the asset including the cost to ready the asset for its intended use.

The Higher Education Act (HEA) of 1965, as amended, 20 U.S.C. 1071 et seq.

A disbursement record submitted to the Common Origination and Disbursement (COD) system indicating that the school has disbursed funds to the student or plans to within the next seven days.

The annual interest rate charged on a loan, which may be equal to or less than the applicable (statutory) interest rate on that loan.

Americans with Disabilities Act

Average Daily Balance

Students may be eligible to receive up to 150% of their Pell Grant Scheduled Award for an award year. This provision is called "Year-Round Pell" or "additional Pell." A student’s additional aid eligibility is denoted by the “Additional Eligibility Indicator” or AEI, in COD.

FSA Handbook, Volume 7, Chapter 5

A physical facility that is geographically separate from the main campus of the institution and within the same ownership structure of the institution, at which the institution offers at least 50% of an educational program. An additional location participates in the Title IV programs only through the certification of the main campus.

A federal, state, or local penitentiary, prison, jail, reformatory, work farm, juvenile justice facility, or other similar correctional institution is considered to be an additional location even if a student receives instruction primarily through distance education or correspondence courses at that location.

34 CFR 600.2

An individual's adjusted gross income as reported to the Internal Revenue Service (IRS). The rules for calculating AGI are set by the IRS, not the Department.

Journal entries usually dated the last day of the accounting period to bring the balance sheet and income statement up to date on an accrual basis (as required by the matching principle and the revenue recognition principle).

Anticipated Disbursement Listing

Process by which the Department or a guaranty agency, under Section 488A of the HEA, may garnish a portion of the wages of a Direct Loan or FFEL program borrower who is not making required student loan payments.

The ability a school must demonstrate in providing the education it promises and properly managing the Title IV programs.

34 CFR 668.16

Funds an institution participating in the Federal Pell Grant, Federal Work-Study (FWS), or Federal Supplemental Educational Opportunity Grant (FSEOG) programs is entitled to receive for an award year if it provides FWS employment, awards grants under the FSEOG Program, or disburses Federal Pell Grants to students in that year.

FSA Handbook, Volume 4, Chapter 1

FSA Handbook, Volume 6, Chapter 1

A type of forbearance on a Direct Loan or FFEL Program loan that the loan holder grants without requiring documentation from the borrower.

34 CFR 685.205(b)

34 CFR 682.211(f) and (i).

Funds withheld from a participating school to collect program review, audit, and formal fine debts. The Department withholds a portion of a school's G5 (Grant Payment System) authorized payments and applies them toward the school's debt.

See Extended Processing

Actual Disbursement Roster

A payment that a federal awarding agency or pass-through entity makes by any appropriate payment mechanism, including a predetermined payment schedule, before the non-federal entity disburses the funds for program purposes.

Under the advance payment method, a school submits a request for funds to the Department that may not exceed the amount of funds the school needs immediately for disbursements to eligible students and parents.

FSA Handbook, Volume 4, Chapter 1

34 CFR 668.162(b)

For Direct PLUS Loan purposes, a financial history that negatively impacts a borrower's eligibility for a Direct PLUS Loan. A parent or a graduate or professional student who has an adverse credit history (as defined in the Direct Loan Program regulations) is not eligible to receive a Direct PLUS Loan unless he or she (1) documents to the satisfaction of the Department that there are extenuating circumstances and completes PLUS loan counseling, or (2) obtains an endorser for the loan who does not have an adverse credit history and completes PLUS loan counseling.

34 CFR 685.200(c)(2)(viii)(B)

Auditor's opinion that financial statements do not fairly present the financial position, results of operations, or cash flows in conformity with generally accepted accounting principles.

A group established by the oversight entity that provides nonbinding feedback to the oversight entity regarding the approval and operation of a Prison Education Program (PEP) within the oversight entity’s jurisdiction.

Application Eligibility Decision System

Affirmation occurs when a contributor agrees to provide information on a FAFSA form, including importing any data the Department already has on file for them and consent, if it exists for that tax year. By accepting the invitation to participate on the FAFSA form, they are affirming the Department can use their data. Also referred to as "role affirmation."

A process under which a school obtains written confirmation of the types and amounts of Direct Loan funds that a student wants to receive for a period of enrollment before the school credits the student’s account with those loan funds.

An officer or employee of a covered institution or an institution-affiliated organization.

One of the ways a school can match its federal allocation in the FSEOG Program. In this approach a school ensures that the sum of all funds awarded to all FSEOG recipients in a given award year consists of 75% federal dollars and 25% qualified nonfederal funds. Note that each of a school's FSEOG recipients must receive some FSEOG federal funds.

FSA Handbook, Volume 6, Chapter 1

The statutory maximum amount of principal an individual may borrow for all loans of a specific type, for all years of postsecondary study.

FSA Handbook, Volume 8, Chapter 4

Adjusted Gross Income

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.

An agreement under which a student receiving a TEACH Grant commits to meeting all requirements of the TEACH Grant service obligation, and promises that for any TEACH Grant received that is converted to a Direct Unsubsidized Loan because the individual failed to meet the service obligation requirements, the grant recipient will repay the loan in full, with interest charged from the date of each TEACH Grant disbursement.

FSA Handbook, Volume 9, Chapter 2

Available Income

American Institute of Certified Public Accountants

Access and Identity Management System

Funds awarded to a school for use during a specific period of time. Campus-Based funds (Federal Supplemental Educational Opportunity Grant and Federal Work-Study) are allocated to a school on an award-year basis. Sometimes referred to as obligation, award, or authorization.

See Cost of Attendance.

A contra asset account with a credit balance used to reduce the carrying amount of accounts receivable to net realizable value. The allowance balance is the estimated total of uncollectable accounts included in accounts receivable.

The national organization of certified public accountants.

For Return of Title IV Funds purposes, the amount equal to the percentage of the payment period or period of enrollment, as applicable, completed by the student multiplied by the total Title IV aid disbursed, plus the total amount of Title IV Aid that could have been disbursed to the student.

FSA Handbook, Volume 5

Dear Colleague Letter designation for training announcements

The maximum Pell Grant amount a student is eligible to receive during a full academic year based on enrollment intensity and cost of attendance (COA). For a full-time student, the annual award will be the same as the Scheduled Award. A part-time student who is enrolled in a term-based program will have an annual award that is less than the Scheduled Award. See also Scheduled Award (in the Pell Grant Program)

FSA Handbook, Volume 7, Chapter 2

The maximum TEACH Grant amount a student may receive for an award year based on enrollment status (full-time, three-quarter-time, half-time, or less-than-half-time). See also Scheduled Award (in the TEACH Grant Program).

FSA Handbook, Volume 9, Chapter 3

The audit that schools and third-party servicers must submit each year. If the servicer contracts with several schools, a single audit can be submitted that covers its administrative services for all those schools.

FSA Handbook, Volume 2, Chapter 4

The statutory maximum Direct Subsidized Loan or Direct Unsubsidized Loan amount that a student may receive for one academic year. The annual loan limit varies by grade level and (for Direct Unsubsidized Loans) the student's dependency status.

FSA Handbook, Volume 8, Chapter 4

The yearly cost of borrowing money reflected as a percentage rate.

A report a participating school is required to compile and file annually with the Department that summarizes the school’s compliance with the regulatory institutional security policies and crime statistics requirements.

FSA Handbook, Volume 2, Chapter 6

34 CFR 668.46

A disbursement record submitted to the COD system indicating the amount and dates of funds the school plans to disburse.

Asset Protection Allowance

Application Programming Interfaces

The maximum annual interest rate that a lender may charge under the Act on a loan. May also be referred to as the statutory interest rate.

Field on a FAFSA Submission Summary or Institutional Student Information Record (ISIR) showing the date an initial paper application was received by the FAFSA processor or the date an initial electronic FAFSA submission was received by the FAFSA Processing System (FPS). See also “Transaction Receipt Date.”

A distribution of amounts available for obligation into amounts available for specified time periods, programs, activities, projects, objects, or combinations thereof. The apportioned amount limits the obligations that may be incurred.

A form of budget authority provided by law that permits federal agencies to make payments out of the Treasury for specified purposes.

For Return of Title IV Funds purposes, a temporary interruption in a student’s program of study that meets certain regulatory requirements. A school is not required to treat a leave of absence as a withdrawal if it is an approved leave of absence.

FSA Handbook, Volume 5

34 CFR 668.22(d)

Annual Percentage Rate

Access Request Management System

Alien Registration Number (also known as A-number)

Auditing Standards Board

Generally, tangible or intangible items which have probable economic benefits that can be obtained or controlled.

For Title IV aid purposes, beginning with the 2024-25 award year, assets include checking and savings, time deposits, money market funds, investments, trusts, stocks, bonds, securities, mutual funds, tax shelters, qualified education benefits, net value of real estate, some business and farm assets (under the One Big Beautiful Bill Act of 2025, family farms, small family businesses with 100 or fewer employees, and family owned commercial fishing businesses are not counted as assets), vacation homes, and child support received.

Prior to the 2024-25 award year, assets included checking and savings, time deposits, money market funds, investments, trusts, stocks, bonds, derivates, securities, mutual funds, tax shelters, qualified education benefits, net value of real estate, business and farm assets (except small businesses and family farms).

The transfer of all rights, authorities, and privileges associated with a Perkins Loan from a school to the Department of Education.

A school that provides primarily or exclusively a two-year program of postsecondary education in professional nursing leading to a degree equivalent to an associate degree in the United States.

Ability to Benefit

Any scholarship, grant, or other form of financial assistance, the terms of which require the recipient to participate in a program of intercollegiate athletics at the institution. Other student aid, of which a student-athlete simply happens to be the recipient, is not athletically related student aid.

34 CFR 668.41(a)

Authority to Operate

Agreement to Serve. This is the previous name for what is now called the TEACH Grant Agreement to Serve or Repay.

The process of assigning benefits or costs to time periods, programs, activities, projects, objects, or combinations thereof.

The Department's tool used to track, monitor and report day-to-day on the post-audit status of single audits, GAO audits, OIG-issued internal audits, external audits and alternative products (reports or memoranda issued by OIG that are not audit reports but raise issues that may need to be addressed by management).

Deficiencies which the auditor is required by regulation to report in the schedule of findings and questioned costs.

2 CFR 200.516(a)

Published by the Department's Office of the Inspector General (OIG), it assists independent auditors (IPAs) in performing audits of student aid programs.

A description and schedule of audits to be performed in a certain period of time (ordinarily a year). It includes the areas to be audited, the type of work planned, the high-level objectives and scope of the work, and includes other items such as budget, resource allocation, schedule dates, and type of report issued.

Chains of evidence provided through coding, cross references, and documentation connecting accounting balances and other summary results with original transactions and calculations.

Board authorized by the AICPA to promulgate auditing and attest standards, quality control standards procedures, and implementation guidance for AICPA members performing such services.

A public accountant or a federal, state, local government, or Indian tribe audit organization, that meets the general standards specified for external auditors in generally accepted government auditing standards (GAGAS). The term auditor does not include internal auditors of nonprofit organizations.

A statement regarding the requirement that an auditor be independent of the entity examined. Intended to remind financial statement users about the auditor's obligations related to independence and to serve as a reminder to auditors of these obligations.

Amount of Title IV funds a school is currently eligible for in the year and program in question. The authorization is also called the Current Funding Level (CFL). In the Direct Loan and TEACH Grant programs, the authorization may also be referred to as the Cash Control Amount (CCA).

An electronic clearing system in which a data processing center handles payment orders that are exchanged among financial institutions, primarily through telecommunications networks. ACH systems process large volumes of individual payments electronically.

Prior to the replacement of the Expected Family Contribution (EFC) by the Student Aid Index (SAI), the result when an independent student or a dependent student's parents had income below a specific threshold and met one of a group of other criteria, such as not needing to file a Form 1040 U.S. tax return. The flag indicated that the student met the statutory criteria for the automatic zero EFC calculation. See Simplified EFC Formulas.

Amount of cash available for a school to draw down through G5. The available balance is the difference between the authorized amount and the school's net drawdowns to date.

The parents' available income is calculated by subtracting certain allowances from the parents' total income reported on the FAFSA form.

FSA Handbook, Application and Verification Guide, Chapter 3

Application and Verification Guide

Automated Voice Response

The length of time in G5 during which schools can perform certain cash management functions.

FSA Handbook, Volume 4, Chapter 1

The period beginning July 1 and ending June 30 of the following year.

Academic Year (may refer to Award Year in some contexts)

The calendar year used for determining income, taxes, and other financial data when completing the FAFSA form. Beginning with the 2017–18 award year, the base year is the “prior-prior year” or two years before the first calendar year of the award year. For example, 2023 is the base year for 2025-26.

A group of records submitted together. Batches can consist of one or more records. Users can submit data for students in a file called a batch. The batch contains a network header record, the Common Record with one or more students / awards / disbursements and the network trailer record.

Borrower-Based Academic Year

The month and year on which a grant award begins and ends. It is the funding period for the award, and includes any applicable amendments. Normally, the funding period is 12 months.

Superior method or innovative practice that contributes to the improved performance of an organization.

Bureau of Indian Affairs

An educational program in which two languages are used to provide content matter instruction.

Bureau of Labor Statistics

A document reflecting funds available on a student's account that can be used to purchase books and other educationally related materials from either a school or unaffiliated bookstore.

A loan that is a legal binding obligation between the borrower and the Department. A loan is considered booked when the COD System has accepted the loan origination record (the award record has been linked to the MPN), the MPN, and the first actual disbursement record for that loan ID. Direct PLUS Loans also require an accepted credit decision on file in the COD System to be booked.

A TEACH Grant becomes booked when COD has accepted the TEACH Grant origination record, an Agreement to Serve or Repay has linked to the grant, and an actual disbursement record has been accepted.

An individual to whom a Title IV education loan is made.

An academic year standard that may be used to monitor Direct Loan annual loan limit progression (i.e., when a borrower becomes eligible for a new annual loan limit). Unlike a Scheduled Academic Year (SAY), a BBAY follows an individual student’s academic progress and does not begin and end at the same time each year.

FSA Handbook, Volume 8, Chapter 6

A claim asserted by a borrower as a defense to repayment of a Direct Loan.

Borrower Defense | Federal Student Aid

Required under the HEA, the BRR Statement provides additional information about the terms and conditions of the loans a borrower receives under the MPN for Direct Loans.

Business Process Operations

A physical facility that is (1) geographically separate from the main campus of a school; (2) within the same ownership structure of the school; (2) approved by the Department as a branch campus; and (4) independent from the main campus.

FSA Handbook, Volume 2, Chapter 1

34 CFR 600.2

Borrower's Rights and Responsibilities

Property that is used in the operation of a trade or business, including real estate, inventories, buildings, machinery, and other equipment, patents, franchise rights, and copyrights.

See FPS C Flag

Pell Scheduled Award determined directly by SAI (Pell= Maximum Pell-SAI); Pell award amount falls between the Max Pell and Min Pell awards. For applicants with a calculated SAI that is greater than the corresponding award year’s maximum Pell Grant award or the calculated Pell Grant amount is less than the award year’s minimum Pell Grant, the applicant is not eligible for a Pell Grant unless they qualify for a minimum Pell Grant award.

Scheduled Award is determined by the equation "Maximum Pell-SAI= Temporary Scheduled Award (TSA)" because the student is deemed Pell-eligible but not eligible for either the Max Pell or Min Pell. The TSA is then rounded to the nearest $5 increment and compared to the COA. If the TSA is lower than the COA, then TSA is then the scheduled Award, if not the COA is the amount of the Scheduled Award.

FSA Handbook, Volume 7, Chapter 2.

See Temporary Scheduled Award.

Any building or property owned or controlled by an institution within the same reasonably contiguous geographic area and used by the institution in direct support of, or in a manner related to, the institution's educational purposes, including residence halls; and any building or property that is within or reasonably contiguous to the school's campus that is owned by the institution but controlled by another person, is frequently used by students, and supports institutional purposes (such as a food or other retail vendor).

FSA Handbook, Volume 2, Chapter 6

34 CFR 668.46(a)

The records created and maintained by a school's law enforcement unit or whatever office or school official is designated to be responsible for referring potential violations of law to local police authorities. Such records are exempt from the privacy restrictions of FERPA. A school may disclose information from these "law enforcement unit records" to anyone—including parents or federal, state, or local law enforcement authorities—without the consent of the eligible student.

FSA Handbook, Volume 2, Chapter 7

Federal student aid programs under which funds are provided to participating institutions for awards to eligible students. The Campus-Based Programs include the Federal Perkins Loan Program the Federal Work-Study (FWS) Program, and the Federal Supplemental Educational Opportunity Grant (FSEOG) Program. (Note: The authority for institutions to make new Federal Perkins Loans ended effective September 30, 2017.)

In the Perkins Loan Program, the forgiveness of a portion of a loan debt for a borrower who meets the regulatory criteria for loan cancellation (usually performing certain types of service). In the Direct Loan Program, loan “cancellation” refers to the borrower’s request to have all or a portion of a loan cancelled (because the borrower does not want all or a portion of the loan). In the Direct Loan Program, cancellation of a loan debt in exchange for the borrower performing certain types of service is called “forgiveness,” and cancellation of a loan due to death, total and permanent disability (TPD), school closure, etc. is called “discharge.”

Corrective Action Plan

Tangible or intangible assets used in operations having a useful life of more than one year that are capitalized in accordance with GAAP.

Expenditures to acquire capital assets or expenditures to make additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to capital assets that materially increase their value or useful life.

Unpaid interest that has been added to the principal balance of a loan. Capitalization of unpaid interest increases the principal balance of the loan, and interest then accrues on the increased principal balance.

A school may spend up to 10% of its current year's FWS or FSEOG allocation (initial and supplemental) in the following award year (carry forward). A school is also permitted to spend up to 10% of its current year's FWS or FSEOG allocation (initial and supplemental) for expenses incurred in the previous award year (carry back).

FSA Handbook, Volume 6, Chapter 1

Cost Accounting Standards

The general ledger account that reports currency, coins, undeposited checks, and the checking accounts of a company.

A system of accounting in which revenues are recorded when received in cash and expenses or expenditures are recorded when cash is disbursed.

The rules and procedures a school must follow to request, maintain, disburse, and otherwise manage Title IV program funds.

34 CFR 668, Subpart K

The regulations that contain the rules and procedures under which participating institutions request, maintain, disburse, and otherwise manage Title IV program funds.

34 CFR 668, Subpart K

The amount available in the federal funds account at the payee's financial institution. Cash on hand is calculated as the total funds received less the federal share of disbursements made, plus refunds received. The balance does not include accruals, accounts payable, or funds belonging to the Department (e.g., interest earned), See also excess cash.

Campus-Based

Cost Benefits Analysis

Congressional Budget Office

Computer-Based Training

Cash Control Account

Change Control Board

Central Contractor Registration

Cohort Default Rate

Cohort Default Rate Guide

Customer Engagement Management System 

The date on which a school takes a “snapshot” of its enrollment for reporting or record-keeping purposes.

Vendor and system designed by the U.S. Department of Education for viewing or correcting FAFSA Submission Summary information, requesting or analyzing ISIR data, and calculating and managing the return of federal student aid program funds. The CPS was decommissioned at the end of the 2023-24 FAFSA cycle (October 2024) and replaced by the FAFSA Processing System (FPS).

Chief Executive Officer

A credential conferred by a state or similar governmental jurisdiction that authorizes the holder to practice as a certified public accountant in that jurisdiction.

Catalog of Federal Domestic Assistance

The number assigned to a federal program in the Catalog of Federal Domestic Assistance.

The title of the program under which the federal award was funded in the CFDA.

Current Funding Level

Chief Fiscal/Financial Officer

Consumer Financial Protection Bureau

Code of Federal Regulations

A listing of the accounts available in the accounting system in which to record entries. The chart of accounts consists of balance sheet accounts (assets, liabilities, equity) and income statement accounts (revenues, expenses, gains, losses).

Under the CFH Act, an otherwise Pell-eligible student whose parent or guardian died as a result of active service in the line of duty as a Public Safety Officer (defined under 42 U.S.C. 3796b, or a fire police officer) may receive the maximum Pell Grant and increased amounts of other federal student aid if the student was less than 24 years old when the parent or guardian died, or was enrolled at an institution of higher education at the time of the parent or guardian’s death. Beginning with the 2024-25 award year, the provisions of the CFH Act are replaced by the Special Rule for Pell Grants.

A child or youth from ages 3 through 21, inclusive, who requires special education and related services because he or she has one or more disabilities as defined in section 602(3) of the Individuals with Disabilities Education Act.

A subsidized government health benefit program affiliated with Medicaid.

Legislation from 1998 that prohibits any entity, including a government agency, from electronically conducting business or communicating with a person under age 13. Because of COPPA, applicants who are 12 or younger cannot complete FAFSA on the Web and must instead mail a paper FAFSA™ form to a special address.

Chief Information Officer

Classification of Instructional Programs

Procedure that compares an applicant’s name, date of birth, and SSN in FPS to that in the records of the Social Security Administration (SSA) and in special cases the Department of Homeland Security (DHS). The FPS will reject applications for insufficient or contradictory information. The result of the match with SSA or DHS is reported on the FAFSA Submission Summary and ISIR and includes a comment (text and code).

A lawsuit in which one or more parties seek class treatment under federal law (Federal Rule of Civil Procedure 23) or any state process analogous to Federal Rule of Civil Procedure 23.

The law that requires institutions to compile statistics for certain crimes that are reported to campus security authorities or local police agencies, including incidents of sexual assault, domestic violence, dating violence, and stalking. The full title is the Jeanne Clery Campus Safety Act.

FSA Handbook, Volume 2, Chapter 6

The portion of a graduate medical education program that counts as a clinical clerkship for purposes of medical licensure comprising core, required clinical rotation, and not required clinical rotation.

A period of time consisting of

FSA Handbook, Volume 2, Chapter 2

34 CFR 600.2

The calculation performed to establish whether certain programs offered in credit hours meet the standard for the minimum number of credit hours and can be considered eligible.

FSA Handbook, Volume 2, Chapter 2

The process by which a federal awarding agency or pass-through entity determines that all applicable administrative actions and all required work of the federal award have been completed and required actions taken.

One of the award periods in G5. The closeout period immediately follows the suspension period. During closeout, the grant award is closed and any remaining cash is deobligated.

The steps a school must take when its participation in the Title IV programs ends, either voluntarily or involuntarily.

The process of closing a suspended award. The closeout process includes the following periods: liquidation, suspension, and closeout.

The process of preparing, entering, and posting closing entries.

A journal entry that balances revenue accounts and expense accounts. Closing entries will mean that the temporary accounts (income statement accounts and drawing account) will start the new accounting year with zero balances.

Configuration Management

Computer Matching Agreement

Contracting Officer

One of two spouses who jointly obtained a consolidation loan under the Direct Loan or FFEL program that combined their individual eligible federal student loans into a single joint consolidation loan for which both individuals were jointly and severally liable. Joint consolidation loan co-borrowers are sometimes referred to as “co-makers.” See also Joint Consolidation Loan.

One of two parents who are joint borrowers of a Federal PLUS Loan as previously authorized in the FFEL Program (co-made PLUS loans have never been authorized in the Direct Loan Program). The term “co-maker” is also sometimes used as an alternative to “co-borrower” to refer to one of two married individuals who obtained a joint consolidation loan under the Direct Loan Program or FFEL Program.

Cost of Attendance

Common Origination and Disbursement

The codification of the rules published in the Federal Register by agencies of the federal government. Each volume of the CFR is updated once each calendar year and issued quarterly. The volume for Education, Title 34, is updated on July 1 of each year. Cited as "34 CFR."

Councils of Governments

Cash on Hand

For cohort default rate purposes, all of a school’s current and former students who during a fiscal year enter repayment on any Direct Subsidized Loan, Direct Unsubsidized Loan, or Federal Stafford Loan (subsidized or unsubsidized) they received to attend the school.

The number of students in a cohort who default on their loans during a fiscal year divided by the total number of students in the cohort, expressed as a percentage.

U.S. Department of Education publication designed to assist schools with their William D. Ford Federal Direct Loan (Direct Loan) Program and Federal Family Education Loan (FFEL) Program cohort default rate data. The guide is a reference tool in understanding cohort default rates and processes.

Real or personal property pledged as part or full security on a debt.

To pledge property as security (collateral) for a debt.

The activities and/or actions by lenders, guarantors, servicers, and collection agencies to obtain payment on unpaid loan principal and interest from a borrower after that borrower defaults on the loan.

A business organization that receives delinquent or defaulted loan accounts from lenders and attempts to collect on those accounts. A fee is charged for the service.

Costs incurred by a lender or its agents in collecting overdue payments. These charges may include, but are not limited to, attorney’s fees, court costs, and telegrams. They may not include routine costs associated with preparing letters or notices or making telephone calls to the borrower.

The College Financing Plan is a consumer tool designed to help collect and review information that prospective students receive about costs and financial aid so that they can make informed decisions about which postsecondary institution to attend. The College Financing Plan was previously referred to as the Financial Aid Shopping Sheet.

A school that provides primarily or exclusively a minimum of a two-year program of postsecondary education in professional nursing leading to a degree equivalent to a bachelor of arts, bachelor of science, or bachelor of nursing in the United States, or to a degree equivalent to a graduate degree in nursing in the United States, and including advanced training related to the program of education provided by the school.

Codes on a FAFSA Submission Summary/ISIR drawing attention to specific issues on a student's application. Each code corresponds to specific comment text for the award year. The last line in the "FAA Information" section on a FAFSA Submission Summary//ISIR shows all the codes generated on the record. FAAs must review the comment codes without reading every comment to find those that may require action.

The system used to process records for the Pell Grant, TEACH Grant and Direct Loan programs.

A document used as a guide by software vendors and schools to program their systems and process records through COD. It provides a COD system overview, a list of changes, processing information (e.g., business rules and edits), print specifications, and technical specifications. The appendices also contain additional reference information, such as conversion tables, report layouts, and Extensible Markup Language (XML) examples. The COD Technical Reference can be found in the Knowledge Center.

A file layout used by schools and the COD system to exchange Pell Grant, TEACH Grant, and Direct Loan data. The Common Record is a document formatted in XML.

A defender organization established in accordance with section 3006A(g)(2)(B) of title 18, United States Code.

Services that are identified by an institution of higher education through formal or informal consultation with local nonprofit, government, and community-based organizations, as designed to improve the quality of life for community residents, particularly low-income individuals, or to solve particular problems related to their needs. In order to be considered community service, the job has to be in an area that is open, accessible, and used by the community at large.

FSA Handbook, Volume 6, Chapter 2

34 CFR 675.2(b)

An offsetting balance. A requirement by some banks that a borrower maintain a minimum balance in a checking or savings account as a condition of a loan.

An innovative approach in higher education that organizes academic content according to competencies—what a student knows and can do—rather than following a more traditional scheme, such as by course.

FSA Handbook, Volume 2, Chapter 2

Conformity in fulfilling requirements under various statutes and regulations.

Process of testing to determine the compliance of the component or system.

The composite score standard combines different measures of the elements of financial health to yield a single measure of a school's overall financial health. This method allows financial strength in one area to make up for financial weakness in another area, and provides an equitable measure of the financial health of schools of different sizes. Included in the calculation are the following ratios: Primary Reserve, Equity, and Net Income.

A student work-learning-service program operated by a school that participates in the Work-Colleges Program.

FSA Handbook, Volume 6, Chapter 2

34 CFR 675, Subpart C

A degree, certificate, nondegree, or noncertificate program that is designed to support students with intellectual disabilities who are seeking to continue academic, career and technical, and independent living instruction at an institution of higher education in order to prepare for gainful employment, and that meets certain other requirements.

FSA Handbook, Volume 2, Chapter 2

34 CFR 668.231(a)

Internal controls performed by computer software as opposed to manual controls. Also means general and application controls over the computer processing of data.

In the Perkins Loan Program, automatic deferments schools must grant during periods of service for which schools also grant loan cancellation. Borrowers do not need to apply for these automatic deferments.

Condition whereby a student is admitted to an academic program provisionally until the student can demonstrate ability to succeed in the program by either furnishing documentation (such as transcripts or test scores) or receiving acceptable grades in program coursework. Students admitted in this manner are regular students only if the school accepts them into an eligible degree or certificate program.

FSA Handbook, Volume 1, Chapter 1

A discrepancy in the information that a school has regarding a student that affects his or her eligibility for federal student aid. A school must resolve conflicting information about a student before that student can receive federal student aid.

FSA Handbook, Application and Verification Guide, Chapter 5

Financial statements that reflect the total economic entity (all entities with same management are presented together and all related party transactions are eliminated from the statements). For example, on a consolidated income statement a corporation that owns several individual schools would report the total of all of its schools' activities. A consolidated balance sheet would report the combined assets except for claims against schools within its group.

The process of combining one or more loans into a single new loan.

A group of two or more eligible schools that interacts with the Department in the same manner as other schools, except that the business between the Department and the schools is channeled through a single point.

FSA Handbook, Volume 2, Chapter 2

A written agreement between two or more eligible schools.

FSA Handbook, Volume 2, Chapter 2

U.S. government agency that implements and enforces federal consumer financial law and ensures that markets for consumer financial products are transparent, fair, and competitive.

The information that a school must provide about financial aid and its campus, facilities, student athletes, and gainful employment programs as well as information to promote campus security and fire safety and prevent drug and alcohol abuse, as required under HEA Sec. 485(f) and 34 CFR 668, Subpart D.

Coursework usually intended for adult and non-traditional students in which a student receives instruction that supplements his or her previous education. Student can receive Title IV aid for continuing education classes and credits only when those courses and credits are applicable to a degree or certificate program.

One of two or more accounts which partially or wholly offset another or other accounts; on financial statements, they may be either merged or appear together.

A legal instrument by which a non-federal entity purchases property or services needed to carry out the project or program under a federal award.

Worksheet identifying all Contractors and Subcontractors working on FTI systems to be provided to the IRS.

A written agreement between an eligible school and an ineligible school.

Any individual required to provide signature and consent on the FAFSA® form, including the student; the student’s spouse; a biological or adoptive parent; or the parent’s spouse (stepparent).

Documented activities, policies, and procedures that help an organization meet its objectives, attain its goals, and accomplish its mission.

A general ledger account containing the correct total amount without containing the details. For example, Accounts Receivable could be a control account in the general ledger. Each day the total of the day's credit and collections are posted to this account. However, the details involving students' accounts will be found in a subsidiary ledger.

Control activities are actions supported by policies and procedures that help ensure management directives are carried out properly and in a timely manner. Control activities can be classified either as preventive or detective. Preventive controls (e.g., approvals) attempt to deter or prevent undesirable events. Detective controls (e.g., reconciliations) attempt to detect undesirable events.

The overall attitude, awareness, and actions of directors and management (i.e., "those charged with governance") regarding the internal control system and its importance to the entity. A positive control environment is the foundation for all internal control standards. It provides discipline and structure as well as the climate of the workplace, which influences the quality of internal control.

Goals or standards for reducing or eliminating potential risks to an organization's mission.

The organizational structure, operational procedures, and administrative practices adopted by all levels of management to provide reasonable assurance that programs and administrative activities are effectively carried out.

The U.S. National Archives and Records Administration (NARA) classification for federal tax information (FTI) related to returns and return information submitted, gathered, or generated by taxpayers. In accordance with the confidentiality protections of Section 6103(l)(13) of the Internal Revenue Code (IRC) and in accordance with all applicable privacy laws, regulations, and policies, the Department will label FTI fields on the ISIR and the FTI must be labelled as CUI//SP-TAX by our partners. These labels must follow FTI wherever it is accessed, stored, or redisclosed with express written consent. For more information, see the “federal tax information (FTI)” definition and NARA CUI Category: Federal Taxpayer Information (https://www.archives.gov/cui/registry/category-detail/federal-taxpayer-info).

Chief Operating Officer

A program that integrates classroom learning and structured work experiences directly related to the goals and objectives of a student's larger educational program.

A capable individual responsible for administering all the Title IV, HEA programs in which a school participates and for coordinating those programs with the institution's other federal and nonfederal programs of student financial assistance. An individual is "capable" if certified by the state in which the school is located and the state requires certification of financial aid administrators. Other factors in determining capability include, but are not limited to, the individual's successful completion of Title IV program training provided or approved by the Secretary and previous experience and documented success in administering the Title IV programs properly.

Children’s Online Privacy Protection Act

A journal entry to correct an erroneous amount previously entered in the general ledger.

If schools select to have their Pell Grant data corrected rather than rejected, the COD system automatically corrects the data and sends a response to the school that submitted the record indicating that a correction took place, the element corrected, the original value, and the corrected value. See Volume 2, Section 4, of the COD Technical Reference, available in the Knowledge Center.

Action taken by an auditee that (a) corrects identified deficiencies; (b) produces recommended improvements; or (c) demonstrates that audit findings are either invalid or do not warrant auditee action.

Statement of the corrective actions related to noncompliance, to include a responsible official, milestones toward completion of the action, metrics which measure progress and remediation, and dates when these milestones will be addressed. CAPs are to be maintained by the organization, and the status is to be reported as directed.

A course provided by an institution under which the institution provides instructional materials, by mail or electronic transmission, including examinations on the materials, to students who are separated from the instructor. Interaction between the instructor and student is limited, is not regular and substantive, and is primarily initiated by the student. Correspondence courses are typically self-paced. If a course is part correspondence and part residential training, the course is considered to be a correspondence course. A correspondence course is not distance education.

FSA Handbook, Volume 2, Chapter 2

34 CFR 600.2

The requirement that less than 50% of a school's regular students be enrolled in correspondence courses for the school to be eligible to participate in the Title IV programs. This limitation may be waived for a school that offers a 2-year associate degree or 4-year baccalaureate degree program if it demonstrates to the Department that in that award year the students enrolled in correspondence courses receive no more than 5% of the total Title IV program funds received by all of the school's students.

FSA Handbook, Volume 2, Chapter 2

The monetary value of resources used or sacrificed, or liabilities incurred to achieve an objective, such as to acquire or produce a product, or to perform an activity or service. Depending on the nature of the transaction, cost may be charged to operations immediately, i.e., recognized as an expense of the period, or to an asset account for recognition as an expense of subsequent periods.

The cost in dollars, of a period of enrollment (such as an academic year). The COA for a student is an estimate of that student’s educational expenses for the period of enrollment. The components that may be included in a student’s COA are specified in the HEA.

FSA Handbook, Volume 3, Chapter 2

HEA, Part F, Section 472

The portion of project costs not paid by federal funds (unless otherwise authorized by federal statute).

Contacting Officer Technical Representative

Corrections on the Web

A type of tax-advantaged savings vehicle for college education.

Any institution of higher education, proprietary institution of higher education, postsecondary vocational institution, or institution outside the United States, that receives any federal funding or assistance.

34 CFR 601.2

Certified Public Accountant

Central Processing System, the system that processed FAFSA records and determined eligibility. Replaced by the FAFSA Processing System (FPS)

Central Processing System / Student Aid Internet Gateway Note: The Central Processing System (CPS) has been replaced by the FAFSA Processing System (FPS).

See Title IV Credit Balance.

An agency that gathers and stores credit information on individuals, and provides reports of that information to organizations from whom the individuals are seeking to obtain credit. Borrowers whose federal education loans are in default are reported to credit bureaus.

A check of a Direct PLUS Loan applicant’s credit record performed by COD to determine whether the individual has an adverse credit history. A credit check is generated when: (1) the COD system receives a Direct PLUS Loan Award; (2) the Direct PLUS Loan applicant completes a Direct PLUS Loan Request on StudentAid.gov; or (3) the school (after obtaining the applicant’s authorization) initiates a credit check on the web through COD.

An amount of student work, defined by a school, that approximates a certain amount of classroom instruction and other student work, or other academic work leading to the awarding of credit hours.

FSA Handbook, Volume 2, Chapter 2

34 CFR 600.2

Those matters addressed during the audit that (1) involved the most difficult, subjective, or complex auditor judgments; (2) posed the most difficulty to the auditor in obtaining sufficient appropriate evidence; or (3) posed the most difficulty to the auditor in forming the opinion on the financial statements. Critical audit matters ordinarily are matters of such importance that they are included in the matters required to be (1) documented in the engagement completion document that summarizes the significant issues and findings from the audit; (2) reviewed by the engagement quality reviewer; (3) communicated to the audit committee; and (4) any combination of the three.

Requires an auditor to communicate in the auditor's report (when the auditor expresses an unqualified opinion) critical audit matters that were addressed during the audit of the current period's financial statements. If the auditor determines that there are no critical audit matters, the auditor would state in the auditor's report that the auditor determined that there are no such matters to communicate.

Customer Relationship Management

A payment period that spans two award years.

Job Location and Development within the Community Service Work-Study Program.

Common Services for Borrowers

Customer Service Center

Community Service Learning (Program)

Customer Service Representative

Total amount of cash available for a school to draw down at any point in time, and is a subset of the school ceiling amount (SCA). A school’s current funding level may be adjusted based on the amount of substantiated cash. A change in CFL will directly impact the SCA. In G5, the CFL is called the Authorization.

Amounts owed by an entity for which the financial statements are prepared, and which need to be paid within the fiscal year following the reporting date.

Current Year

The preventative methods used to protect software from threats, weaknesses and vulnerabilities.

Dun and Bradstreet

Data Universal Numbering System (by Dun & Bradstreet) The DUNS number was replaced by the Unique Entity Identifier (UEI) for U.S. federal government use.

The check that the FPS makes against other databases such as NSLDS and those maintained by other federal agencies: the Department of Justice, the Social Security Administration, and the Department of Homeland Security. Data matches help to determine students' eligibility for federal student aid.

A four-digit unique student identifier that schools may use in combination with an applicant's identifying information to access the student's record if the school was not listed on the Free Application for Federal Student Aid (FAFSA) form.

Violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim.

FSA Handbook, Volume 2, Chapter 6

34 CFR 668.46(a)

A calendar day, unless otherwise specified.

Debit

Debt Collection and The Debt Collection Improvement Act of 1996

Dear Colleague Letter

Digital Communications Tool 

The Department of Defense Form DD 214 is the form, received at separation, that certifies a veteran’s service.

An ad hoc publication by the Department of Education addressing significant policy, system, and training issues and intended for college financial aid administrators and other customers.

A list of SSNs associated with people who have died.

Suspension of one of the principals or employees of a school by a federal agency. Debarment prohibits that person from participating in any Title IV program as long as the agency’s procedures include due process protections that are equivalent to those provided by the Department.

A measure that compares student indebtedness to earnings and is used to determine whether Title IV program funds can be used to pay for enrollment in gainful employment programs.

The failure to meet any obligation or term of a credit agreement, grant, or contract.

A status that a loan is placed in if the borrower has failed to make a payment when due for the number of days allowed by the applicable regulations, or if the borrower violates other terms and conditions of the promissory note. Borrowers who default on federal education loans lose eligibility for further federal student aid, will have their default reported to national credit bureaus, and may have their wages garnished or tax refunds offset by the government.

A plan that new schools, those with a change of ownership control, and those whose status as a main or branch campus changes must implement. New schools are exempt in certain circumstances. Schools with a cohort default rate ≥ 30% must establish a default prevention task force that prepares a plan that

Office within Federal Student Aid responsible for the management and collection of defaulted Title IV loans and Title IV grant student overpayments.

FSA Handbook, Volume 4, Chapter 3

A legal defense whereby a borrower asserts that they were too young to enter into an agreement. A borrower may not use a defense of infancy as part of any attempt to refuse to repay Title IV loans. HEA Section 484A(b)(2).

A period during which a borrower is entitled to have payments of principal and interest on federal education loans postponed if the borrower meets the eligibility criteria for the deferment. Examples of reasons that entitle a borrower to deferment include enrollment in postsecondary education on at least a half time basis, unemployment, economic hardship, or qualifying active duty military service.

A student enrolled in a course of credit who is recognized by the institution as seeking a degree or certificate.

Action a financial aid administrator may take to change a student's status for federal student aid from dependent to independent (the reverse is not permitted). There must be unusual circumstances to warrant an override, and the FAA must document those circumstances in the student's file. For more detail, see Chapter 5 of the Application and Verification Guide.

The student's dependent children and other persons (except the student's spouse) who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year.

Any student who does not qualify as an independent student (see Independent Student). A FAFSA form for a dependent student must include parent information.

The student, other dependent children of the student’s parents (even if they live apart from the parents due to a qualifying temporary absence under IRS code, such as living apart due to college enrollment), and other persons who live with and receive more than one-half of their support from the parent and will continue to receive more than half of their support from the parent during the award year.

An account at a depository institution described in 12 U.S.C. 461(b)(1)(A), or an account maintained by a foreign institution at a comparable depository institution that meets the requirements of 34 CFR 668.163(a)(1).

An official of the Department of Education to whom the Department has delegated responsibilities indicated for a certain action.

In the Electronic Data Exchange, the transmitter of Title IV program data (applications and/or corrections) through the FAFSA Partner Portal. The results of processing (ISIRs) as well as COD data and reports are transmitted to the destination point through the Student Aid Internet Gateway. This may be a postsecondary school servicing one or more schools or a service agent servicing multiple schools.

The school employee responsible for ensuring secure access to the SAIG (a communication system between the school and the Department's systems). The DPA is responsible for assigning and providing access via SAIG for other employees of the school.

Departure from prescribed internal control procedures. Often expressed as a rate at which the departure occurs.

Department of Homeland Security

Code on a FAFSA Submission Summary/ISIR indicating the results of a match with the Department of Homeland Security (DHS). An applicant’s FAFSA is sent to DHS if the applicant indicates on the FAFSA form that he or she is an eligible noncitizen.

Code on a FAFSA Submission Summary/ISIR indicating the results from a secondary match with DHS for an applicant who failed primary confirmation of immigration status.

Data Integrity Board

As defined in Section 103 of the HEA, an entity that

A school affiliated with a hospital or university, or an independent school, which provides primarily or exclusively a two-year program of postsecondary education in professional nursing, leading to the equivalent of a diploma in the United States or to equivalent evidence that the program has been satisfactorily completed.

An instructional program that, in lieu of credit hours or clock hours as a measure of student learning, utilizes direct assessment of student learning, or recognizes the direct assessment of student learning by others. The assessment must be consistent with the accreditation of the institution or program utilizing the results of the assessment.

FSA Handbook, Volume 2, Chapter 2

34 CFR 668.10

A Direct Loan that combines the outstanding balances of other pre-existing federal education loans.

The cost of resources directly consumed by an activity. Direct costs are assigned to activities by direct tracing of units of resources consumed by individual activities.

Paying Title IV funds directly to a student or parent by issuing a check or other instrument payable to the student or parent, initiating an EFT to a bank account designated by the student or parent, or providing cash to the student or parent.

FSA Handbook, Volume 4, Chapter 2

A listing of unbooked loans for which COD has not received the elements required for booking. The report also lists MPNs received by COD that do not have an accepted origination record. The report is sent to the school’s SAIG mailbox on a monthly basis (if data for the given month exists for the report). The report is also available via the COD website (cod.ed.gov).

Lists students who have completed entrance counseling, financial awareness counseling, and exit counseling on the StudentAid.gov website. This report is available at COD Online.

Lists borrowers who are at least 31 days delinquent in their Direct Loan payments. The report gives the most recent contact information for the borrower and can be used in default reduction efforts by helping schools identify and contact borrowers. A report of borrowers delinquent in payment to loan servicers is available through the National Student Loan Data System (NSLDS).

Lists student borrowers for which the COD system has multiple Direct Subsidized Loan and/or Direct Unsubsidized Loan awards with overlapping academic years within the same award year. Schools should monitor this report and contact other schools involved to verify that the student’s academic and award years are correct in both COD and the schools’ systems. Failure to monitor this report may cause records to reject in COD for going over the annual loan limits. This report is available at COD Online.

Lists students who have completed exit counseling on the StudentAid.gov website, or students who completed counseling by another means whose information was uploaded by the school to NSLDS. Schools should monitor this report to assist with their default reduction efforts and ensure compliance with exit counseling requirements.

This report is available from the NSLDS Professional Access website, in detail and summary versions and online, both as a scheduled report or on demand. Note that although students complete entrance and exit counseling on StudentAid.gov, it is NSLDS that sends exit counseling reports to schools.

Lists MPNs that have expired (become inactive) within the last 30 days. This report is available at COD Online and the school's SAIG mailbox.

Lists all the loans a school has reduced to zero ($0) for the reporting period. This report is available at COD Online and via the school’s SAIG mailbox.

Lists MPNs that have become inactive within the last 30 days due to discharges for death, unauthorized signature, or identity theft. This report is available at COD Online.

Lists MPNs that will expire (become inactive) within the next 60 days. This report is available at COD Online.

Informs schools of loans with anticipated disbursement dates (Disbursement Release Indicator [DRI] set to False) on file at COD and the dates of those anticipated/pending disbursements. This report is available at COD Online.

A loan made under the William D. Ford Federal Direct Loan Program.

A file that can used to rebuild a lost or corrupted Direct Loan Database, or recreate specific student records. School mays request this file at COD Online.

Any of the repayment plans under which Direct Loan borrowers can repay their loans.

A COD-generated statement, created monthly (comparable to a bank statement), that summarizes a school’s processing activity for the month. The SAS provides the Department’s official ending cash balance from records submitted by the school. A school will receive this report on a monthly basis until the Department has officially closed the school’s activity for a program year. This report is available via the school’s SAIG mailbox.

The portion of a Direct Consolidation Loan made before July 1, 2006 attributable to Direct PLUS Loans, Direct PLUS Consolidation Loans, Federal PLUS Loans, and Parent Loans for Undergraduate Students that were repaid by the consolidation loan.

A loan made under the Federal Direct PLUS Loan Program. Direct PLUS Loans are made to parents of dependent undergraduate students.

The portion of a Direct Consolidation Loan attributable to certain subsidized Title IV education loans that were repaid by the consolidation loan.

A loan made under the Federal Direct Stafford/Ford Loan Program.

The portion of a Direct Consolidation Loan attributable to unsubsidized Title IV education loans, certain subsidized Title IV education loans, and certain other federal education loans that were repaid by the consolidation loan.

A loan made under the Federal Direct Unsubsidized Stafford/Ford Loan Program.

Costs Charges to a federal award that the federal awarding agency or pass-through entity determines to be unallowable, in accordance with the applicable federal statutes, regulations, or the terms and conditions of the federal award.

The crediting of a student's account or paying a student or parent directly with

FSA Handbook, Volume 4, Chapter 2

34 CFR 668.164(a)

An electronic record sent from a school to COD notifying the Department when a Pell, TEACH Grant, or Direct Loan disbursement will be or has been made to a student.

A "tag" on the Common Record that designates a record as an Actual Disbursement Record. It signals the COD System to post the amount of disbursement to an award (loan/grant).

Cancellation of the balance due on a federal education loan. Reasons for discharge of a loan include the borrower’s death (or the death of the student on whose behalf a parent obtained a Direct PLUS Loan or Federal PLUS Loan), the borrower’s total and permanent disability (as defined in the Department’s regulations), school closure, and certain other conditions as specified in the Department’s regulations.

Selected team of FSA Subject Matter Experts who will verify and approve generated reports meet IRS compliance before exporting from FTIDM.

See Loan Disclosure Statement.

Information that postsecondary institutions must make available to students and the public generally, such as information about their academic programs, costs, withdrawal procedures, refunds, accreditation, athletic programs, crime and safety, etc.

FSA Handbook, Volume 2, Chapter 6

The difference between the estimated worth of a future benefit and its present value; a compensation for waiting or an allowance for returns from using the present value of these returns in other ways.

Program for which outlays are controlled by annual appropriation acts. Annual appropriation acts are required to fund the continuing operation of all federal programs that are not "mandatory" (compare to Entitlement Programs).

That part of an individual's compensation from an employer and other income from any source, including spousal income, that remains after the deduction of any amounts required by law to be withheld, or any child support or alimony payments that are made under a court order or legally enforceable written agreement. Amounts required by law to be withheld include, but are not limited to, federal, state, and local taxes, Social Security contributions, and wage garnishment payments.

A motion asking for a court order that entirely disposes of one or more claims in favor of the party who files the dispositive motion without the need for further court proceedings.

Training that uses one or more technologies including, but not limited to, the internet, open broadcast, audio conferencing, or other media to deliver instruction to students who are separated from the instructor and to support regular and substantive interaction between the students and the instructor.

FSA Handbook, Volume 2, Chapter 2

34 CFR 600.2

A capital distribution of the balance of an institution’s Perkins Loan Revolving Fund (Perkins Fund). The Distribution of Assets from the Perkins Loan Revolving Fund process replaces the existing Excess Liquid Capital process as part of the wind-down of the Federal Perkins Loan Program.

FSA Handbook, Volume 6, Chapter 3

Direct Loan

Direct Loan Consolidation

Debt Management Collection System 2 

Deposit Message Retrieval System (Treasury Department)

Date of Birth

A written explanation that describes a topic so that an independent third party can understand it. Documentation includes explanations of program mission and functions, component control techniques, summary of the steps taken in conducting an internal control review, and the operation of a financial system.

Department of Defense

Department of Justice

A felony or misdemeanor crime of violence committed by

FSA Handbook, Volume 2, Chapter 6

34 CFR 668.46(a)

Destination Point Administrator

The rate the Department issues for review before issuing an official cohort default rate. A draft cohort default rate is used only for the purposes described in 34 CFR 668.204.

Default Reduction Assistance Program

A school's request for and subsequent transmission of funds to the school via G5. A drawdown occurs when a school (or COD) initiates a request for funds through G5, and the funds are transmitted from the U.S. Department of the Treasury to the school's bank account.

An adjustment made in G5, where a drawdown is moved from one award year to another award year. This usually is done to correct an error (mistakenly requesting funds from the wrong award year, or to change the amount of the request before the funds are received by the school).

Disbursement Release Indicator

Data Release Number

Disaster Recovery Plan

Data Retrieval Tool. This has been replaced by the FUTURE Act Direct Data Exchange (FA-DDX).

A legal judgment that bars an applicant from receiving certain federal benefits, including Title IV aid, due to a federal or state conviction for drug possession or trafficking. The FAFSA Processing System (FPS) maintains a file of individuals who have received a drug abuse hold, and all applicants are checked against this list.

FSA Handbook, Volume 1, Chapter 1

Defense Technical Information Center

The use of extensive persistent procedures for servicing and collecting student loans. Also the full and timely disclosure to student borrowers of their rights and obligations.

This flag on a FAFSA Submission Summary/ISIR is set to "Yes" if another record was found in the FPS database with the same SSN but a different last name.

Data View Application is a web product that allows authorized FSA employees and contractors to view FTI retrieve from the IRS for either the IDR or FAFSA program. It is the only method available for FSA to be able to view FTI.

Electronic Application to Participate (in the Federal Student Aid Programs)

Electronic Signatures as defined in the Global and National Commerce Act

The former name of the FSA Training Center, a website hosting Federal Student Aid instructional courses and webinars on all aspects of administering the Title IV programs.

Enterprise Architecture

Electronic Announcement

A disbursement of federal student aid made to a student up to 10 days before the first day of classes for a payment period or period of enrollment, as applicable.

FSA Handbook, Volume 4, Chapter 2

34 CFR 668.164(i)

Those services defined in section 632(4) of the Individuals with Disabilities Education Act that are provided to infants and toddlers with disabilities.

In cash accounting, an item is "earned" and reported as revenue when cash is received. Under accrual accounting an item has been "earned" and is reported as revenue when a service has been performed or product delivered, not when cash is received.

Eligibility and Certification Approval Report

Electronic Campus-Based System

Electronic Cohort Default Rate

Electronic Cohort Default Rate Appeals

Electronic Code of Federal Regulations

United States Department of Education

Education Central Automated Processing System

Electronic Data Exchange

A PC application that processes, packages, and manages FSA records. FSA provides EDExpress free of charge to postsecondary schools that participate in its Electronic Data Exchange (EDE) process.

Education Department General Administrative Regulations

These codes communicate unique messages from the COD System when a school's reported student data is found to be in error or inconsistent with related data.

In the COD process, a record sent with anticipated disbursement information for editing purposes only. Edit Only Records may originate an award, but are not intended to request or report funds. Schools using the Common Record submit a record with the Disbursement Release Indicator set to False.

Enterprise Data Management and Analytics Platform Services

Electronic Data Processing

Department of Education system that integrates the Department's financial processes, including financial management, contracts and purchasing, grants administration, and payment management.

Any of the following:

34 CFR 601.2

A legally authorized postsecondary program of organized instruction or study that leads to an academic, professional, or vocational degree, or certificate, or other recognized educational credential, or is a comprehensive transition and postsecondary program.

34 CFR 600.2

A regional public multi-service agency authorized by state law to develop, manage, and provide services or programs to local educational agencies as defined in section 9101 of the Elementary and Secondary Education Act of 1965, as amended.

34 CFR 674.51(g) (Federal Perkins Loan Program)

34 CFR 682.216(b) (FFEL Program)

34 CFR 685.217(b) (Direct Loan Program)

34 CFR 686.2(d) (TEACH Grant Program)

Employee Enterprise Business Collaboration

Estimated Financial Assistance (prior to the 2024-25 award year; now referred to as Other Financial Assistance)

Expected Family Contribution (prior to the 2024-25 award year; replaced by the Student Aid Index)

Reasonable assurance that operational objectives are achieved, that published financial statements are reliably prepared, and that the entity complies with applicable laws and regulations.

Electronic Funds Transfer (see also ACH/EFT)

Earned Income Credit

Employer Identification Number

An electronic exchange system between the FAFSA Processing System (FPS) and an institution under which

A file sent by a school to the Common Origination and Disbursement (COD) system containing a request for information. A school can receive reconciliation files, multiple reporting records, year-to-date (YTD) data, electronic statements of account (ESOA) data, Potential Overaward Process (POP) reports, and/ or verification status reports.

A transaction initiated electronically instructing the crediting or debiting of a financial account, or an institution's depository account. For purposes of transactions initiated by the Department, the term ''EFT'' includes all transactions covered by 31 CFR 208.2. For purposes of transactions initiated by or on behalf of an institution, the term ''EFT'' includes, from among the transactions covered by 31 CFR 208.2, only Automated Clearinghouse transactions.

Generic term describing any transfer of funds between parties or depository institutions through electronic data systems.

The connections that schools are required to make to various Department websites (e.g., the COD website) to be in compliance with administrative capability requirements.

Enacted on June 30, 2000, the E-Sign Act provides, in part, that a signature, contract or other record relating to a transaction may not be denied legal effect, validity or enforceability solely because it is in electronic form, or because an electronic signature or electronic record was used in its formation. Voluntary consent to participate in electronic transactions is required for all financial information provided or made available to student loan borrowers, and for all notices and authorizations to Title IV recipients required under 34 CFR 668.165.

FSA Handbook, Volume 2, Chapter 7

An official statement from the Department that sets a school’s authorization level for the upcoming award year and projects adjustments to the school’s Title IV program funding needs. It summarizes the status of a school’s Current Funding Level (CFL) as it compares to the net drawdowns for the award year. An ESOA also details the amount expended to date. ESOAs are produced for the Federal Pell Grant Program. The Department produces an ESOA whenever there is an adjustment to a school’s current Title IV program authorization.

A nonprofit institutional day or residential school, including a public elementary charter school, that provides elementary education, as determined under state law.

A summary of an institution’s eligibility/certification information (Title IV program participation, institution’s accreditor, state authorization, staff, additional locations and eligible vocational programs).

A percentage calculated by summing all of the accepted actual disbursement records for a student at the attended institution in an award year and dividing that amount by the Scheduled Federal Pell Grant Award at the attended institution.

A student in an approved course of study who has submitted a Free Application for Federal Student Aid (FAFSA) form and meets the eligibility requirements for Title IV financial aid. The student must be currently enrolled or be a prospective student at a postsecondary school which is eligible to participate in the Title IV programs.

A program combining education, training, and other services that enables an individual to obtain a secondary school diploma or recognized equivalent, and at least one postsecondary credential, and that helps the individual enter or advance within a specific occupation or occupational cluster. Some individuals who do not have a high school diploma or recognized equivalent may become eligible to receive Title IV aid through enrollment in an eligible career pathway program and meeting certain other requirements.

FSA Handbook, Volume 1, Chapter 1

34 CFR 668.2(b)

An institution that qualifies as

FSA Handbook, Volume 2, Chapter 1

34 CFR 600.2

An immigration status that meets the requirements of 34 CFR 668.33(a)(2). That is, a student who is not a U.S. citizen, but is still potentially eligible to receive at least one type of Title IV aid. Types of eligible noncitizens include: lawful permanent residents, conditional resident aliens, refugees, persons granted asylum, persons paroled into the U.S. for at least one year, Cuban-Haitian entrants, conditional entrants, victims of human trafficking, battered immigrants-qualified aliens, students of the Freely Associated States, and Jay treaty students. Not all types of eligible noncitizen are eligible to receive all types of Title IV aid.

FSA Handbook, Volume 1, Chapter 2

A school that chooses to establish eligibility for the Title IV programs but not to participate in them. Designation as an eligible institution qualifies a school or its students to take advantage of non-Title IV programs or benefits, such as the American Opportunity and Lifetime Learning tax credits and qualifies its students for deferments of federal student loans.

FSA Handbook, Volume 2, Chapter 1

An educational program that is provided by a participating institution and meets statutory and regulatory the requirements for participating in the Title IV programs.

FSA Handbook, Volume 2, Chapter 2

34 CFR 668.8(c) and (d)

HEA, Title IV, Part F, Section 481(b)

A student who meets the statutory and regulatory eligibility requirements to receive aid from the Title IV programs.

FSA Handbook, Volume 1

34 CFR 668, Subpart C

HEA, Title IV, Part G, Section 484

A person who has not reached the age of majority but is released from control of his or her parent or guardian, as adjudicated by a court of competent jurisdiction in the state of the student's legal residence at the time of the adjudication.

Action taken by the Department to suspend a school's or third-party's participation in the Title IV programs if the Department:

FSA Handbook, Volume 2, Chapter 8

The procedures a school must develop for emergency response and evacuation and of which it must include a description in its annual security report to the campus community. A school must develop procedures to immediately notify the campus community upon the confirmation of a significant emergency or dangerous situation involving an immediate threat to the health or safety of students or employees occurring on the campus.

34 CFR 668.46(g)

Identifying number issued by the IRS to businesses for tax filing purposes. The EIN preceded by the letters “ED” is the password for accessing the Electronic Application (e-App) that schools use to apply for and update institutional Title IV eligibility.

Electronic Master Promissory Note

An individual who agrees to repay a Direct PLUS Loan if the borrower does not repay the loan. Federal PLUS Loans previously made under the FFEL Program may also have endorsers. In the case of a Direct PLUS Loan made to a parent borrower, the endorser may not be the dependent undergraduate student on whose behalf the loan was obtained.

FSA Handbook, Volume 8, Chapter 1

Usually a permanently restricted asset for which the principal portion must be retained indefinitely. The earnings from an endowed fund could be unrestricted or temporarily restricted.

The process of acquiring English as a second language.

The status of a student who has

34 CFR 668.2(b)

The earliest date a student was enrolled in an eligible program for the designated award year.

The percentage of full-time enrollment at which a student is enrolled, rounded to the nearest whole percent. For example, if full-time enrollment is 12 credit hours and the student is enrolled in 7 hours, the enrollment intensity would be 7 ÷ 12 × 100% = 58.3% (round to 58%).

FSA Handbook, Volume 7, Chapter 3

The process used by schools to report student enrollment data to the Department. Enrollment reporting can occur online in real time, or through file exchange using SAIG.

A webpage that displays information about the school for the enrollment reporting process. The page displays the set up for organizations that report or receive enrollment status information about students receiving federal student aid. The Profile includes file preferences, administrator relationships for school locations sharing the same OPEID, and the reporting schedule one year into the future and six months into the past.

The 8-digit code (Office of Postsecondary Education Identification Number {OPE ID}) for the physical location where the student is attending classes that is reported in the COD disbursement record to ensure a student is listed on the correct NSLDS Enrollment Roster.

Full-time, three-quarter-time, half-time, or less-than-half-time, depending on a student's credit-hour workload per academic term, at an institution using semesters, trimesters, quarters, or other academic terms and measuring progress by credit hours. All levels are relative to full time. At an institution using clock hours, 24 hours a week is full time and 12 hours a week is half-time.

FSA Handbook, Volume 1, Chapter 1

34 CFR 668.2(b) (full-time student)

34 CFR 668.2(b) (half-time student)

A program in which the federal government becomes automatically obligated to provide benefits to members of a specific group who meet the requirements mandated by law. Programs for which outlays are not controlled by annual appropriation acts (compare to Discretionary Program).

On the Common Record, the unique routing identifier for each data exchange partner (e.g., school, third-party servicer, vendor, etc.). When performing entity searches via COD website, the Entity ID is the school's COD identifier, Pell ID, Direct Loan ID or OPE ID.

Information about loan terms and conditions, along with debt management strategies, that first-time student borrowers are required to receive before they may receive their first Direct Loan disbursement. Entrance Counseling is available on StudentAid.gov.

FSA Handbook, Volume 8, Chapter 2

34 CFR 685.304(a)

Tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-federal entity for financial statement purposes, or $5,000.

A measure of a school's capital resources and its ability to borrow, used when calculating the composite score. The equity ratio is expressed as a fraction with the modified equity as the numerator and the modified expenses as the denominator.

The successful completion of at least a two-year program that is acceptable for full credit toward a bachelor's degree and qualifies a student for admission into the third year of a bachelor's degree program.

Employee Retirement Income Security Act of 1974 (29 U.S.C. 1301-1461

The reversion of funds to an unintended, third-party (e.g., when a Title IV credit balance check to a student is not cashed, and the funds remain in the school's account or are transferred to the state's escheatment account). Schools must have a process to ensure that Title IV program funds never escheat to the state or any other third party.

FSA Handbook, Volume 4, Chapter 1

Experimental Sites Initiative authorized by Section 487A of the Higher Education Act.

English as Second Language

English as a Second Language program. Students enrolled in a program consisting solely of ESL instruction are eligible for Title IV funds only from the Pell Grant program.

Electronic Statement of Account

See Other Financial Assistance (OFA).

Any amount of Title IV funds, other than Federal Perkins Loan Program funds, that an institution does not disburse to students or parents by the end of the third business day following the date the institution

FSA Handbook, Volume 4, Chapter 1

34 CFR 668.166

Beginning with the 2024-25 award year, includes education credits, taxable grant and scholarship aid, and income earned from work under the Federal Work Study (FWS) Program.

Prior to the 2024-25 award year, included need-based student aid (including FWS), income earned from work under co-op ed program, AmeriCorps living allowance, child support paid, Social Security payments, special combat pay.

Available on StudentAid.gov, it provides information about loan terms and conditions, with emphasis on repayment requirements and debt management strategies, that each school participating in the federal education loan programs must ensure is provided to student borrowers. For Direct Loan and FFEL student borrowers, the counseling must take place shortly before the borrower ceases to be enrolled at least half time, or as soon as possible after the school becomes aware that the borrower is no longer enrolled half time. For Perkins Loan borrowers, the counseling must take place before the borrower leaves school, or as soon as possible after the school becomes aware that the borrower is no longer attending classes.

FSA Handbook, Volume 6, Chapter 3 (Perkins Loan Program), and Volume 8, Chapter 2 (Direct Loan Program)

34 CFR 674.42(b) (Perkins Loan Program)

34 CFR 685.304(b) (Direct Loan Program)

The amount a student and the student's family might be reasonably expected to contribute toward the student's postsecondary education for the academic year. Replaced by “Student Aid Index (SAI)” beginning with the 2024-25 FAFSA processing cycle.

Fast-track versions of the preliminary report and final determination letter to the institution regarding findings identified during a program review. Used only under conditions described in the procedures.

Appropriation accounts in which the balances are no longer available for incurring new obligations because the time available for incurring such obligations has passed.

The Direct Loan Program provides relief from close-out processing deadlines for extenuating circumstances. An institution may request extended processing if it is unable to meet the processing deadline (also known as Closeout Deadline). The Department grants extended processing due to either an event such as a natural disaster, or a processing error.

The Federal Pell Grant Program provides relief from processing deadlines in extenuating circumstances. A school may request administrative relief when it is unable to meet the September 30th deadline for submitting records, due to either an event, such as a natural disaster, or a processing error.

A web application designed by the Department that provides schools with a paperless, single point of submission, for financial statements and compliance audits required by Title IV participants.

Facilities and Administration

Financial Aid Administrator

A website previously used by financial aid administrators use to enter application data, view ISIR information, and make corrections. FAA Access to CPS Online was replaced by the FAFSA Partner Portal (FPP).

Federal Audit Clearinghouse

An educator or tenured individual who is employed by a Tribal College or University, as that term is defined in section 316 of the HEA, to teach, research, or perform administrative functions. For purposes of this definition, an educator may be an instructor, lecturer, lab faculty, assistant professor, associate professor, full professor, dean, or academic department head.

Final Audit Determination

See Free Application for Federal Student Aid

Formal consent and approval granted by an applicant and any applicable contributors for a given FAFSA cycle (e.g., December 2023 to September 2025 for the 2024-25 FAFSA form) to retrieve and use federal tax information (FTI) to determine an applicant’s federal financial aid eligibility as well as permit the redisclosure of FTI by the Department to an eligible institution, state higher education agency, or a designated scholarship organization for the application, award, and administration of student aid programs. The applicant and contributors (if applicable) must provide consent and approval once each year. If FAFSA FTI consent and approval is not provided, the student will not be eligible for any Title IV aid.

The former name of the online version of the FAFSA form and the website where it is accessed. Currently FAFSA.gov or StudentAid.gov.

A tool to assist students and parents with determining who are contributors to the FAFSA form.

A system that replaces FAA Access to CPS Online. It allows FAAs to enter corrections, view processed records, compare multiple transactions, and provide identity verification results.

Formal consent provided by an applicant and any applicable contributor(s) for a given FAFSA cycle (e.g., December 2023 to September 2025 for the 2024-25 FAFSA form) that meets the statutory requirements of collecting and using an individual’s personally-identifiably information (PII) under the Privacy Act, as amended (5 U.S.C. § 552a). PII provided on the FAFSA (e.g., name, date of birth, social security number) with consent of the individual, will be provided to the IRS to conduct a match in order for the Department to receive FTI for purposes of determining an applicant’s federal financial aid eligibility and permit further redisclosure of FTI by the Department. For more information, see FAFSA FTI Approval.

Replaces the Central Processing System (CPS). The FPS evaluates FAFSAs, manages the verification process, and returns results to students and parents.

The data entry processor for a processing year under contract with the U.S. Department of Education. The FAFSA processor receives paper applications, paper FAFSA Submission Summary corrections, and paper signature pages in the mail, performs document analysis to ensure that the data is acceptable, and handles missing or unacceptable responses. The processor images the application, enters the information from the application, and transmits the data and image electronically to the FPS.

Summary of the answers provided on the student's FAFSA form. Includes comments, next steps, and other information related to the student's federal aid eligibility. The FAFSA Submission Summary replaces the Student Aid Report (SAR) beginning with the 2024-25 FAFSA Processing Cycle.

FSA Handbook, Application and Verification Guide, Chapter 1

Federal Award Identification Number

The amount at which an asset or liability could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

A parent, sibling, spouse, child, spouse’s parent or sibling, child’s or sibling’s spouse.

The law that sets limits on the disclosure of personally identifiable information from school records and defines the rights of the student to review the records and request a change to the records. FERPA generally gives postsecondary students the right to

FSA Handbook, Volume 2, Chapter 7

Formerly known as household size. The number of persons in the household of an independent student or a dependent student’s parents, entered on the FAFSA form. In general, it includes an independent student and his or her spouse (if one exists), and in some cases, the student's dependents. For dependent students, family size includes the parents, the student, and in some cases, the student's siblings. See the discussion of household size in Chapter 2 of the Application and Verification Guide for complete details.

Replaces the Central Processing System (CPS) Primary Key ID (which consisted of SSN and Last Name). The person UUID is created for each person within FPS and stays with the person across cycles and across any roles. The FAFSA UUID is created for each FAFSA within an award cycle. This UUID will change across cycles but all transactions within a cycle will be linked to the specific FAFSA UUID.

Financial Aid Office (also, Officer)

Federal Awardee Performance and Integrity Information System

Federal Acquisition Regulation

Financial Accounting Standards Board

Family Contribution

Federal Capital Contribution (Perkins)

Federal Deposit Insurance Corporation

The William D. Ford Federal Direct Student Loan Program

Federal Enterprise Architecture

Group authorized by the accounting profession to establish generally accepted accounting principles (GAAP) applicable to federal government entities.

The clearinghouse designated by OMB as the repository of record where non-Federal entities are required to transmit required reporting packages.

In the Perkins Loan Program, federal funds allocated or reallocated to an institution in an award year for deposit into the institution's federal funds account under section 462 of the HEA.

One of the components of the Direct Loan Program. Loans made under this program are referred to as Direct Consolidation Loans and provide loans to borrowers who consolidate certain federal educational loans.

A component of the Federal Direct Loan Program. It provides loans to parents of dependent students and to graduate or professional students. Loans made under this program are referred to as Direct PLUS Loans.

One of the components of the Direct Loan Program. It provides loans to undergraduate students attending schools that participate in the Direct Loan Program. Loans made under this program are referred to as Direct Subsidized Loans.

One of the components of the Direct Loan Program. It provides loans to undergraduate, graduate, and professional students attending schools that participate in the Direct Loan Program. Loans made under this program are referred to as Direct Unsubsidized Loans.

This former loan program included the Federal Stafford Loan, Federal PLUS, Federal Supplemental Loans for Students (Federal SLS), and Federal Consolidation Loan programs. Lenders used their own funds to make loans to enable students or their parents to pay the costs of the students’ attendance at eligible institutions. The statutory authority for lenders to make new loans under the FFEL Program ended as of July 1, 2010.

Legislation that defines a comprehensive framework to protect government information, operations and assets against natural or man-made threats. FISMA was signed into law part of the Electronic Government Act of 2002 and updated in 2014.

Except for funds provided by the Department for administrative expenses, and for funds used for the Job Location and Development Program under 34 CFR 675, Subpart B, funds received by an institution under the Title IV programs are held in trust for the intended beneficiaries or the Department. The institution, as a trustee of those funds, may not use or hypothecate (i.e., use as collateral) the funds for any other purpose or otherwise engage in any practice that risks the loss of those funds.

FSA Handbook, Volume 4, Chapter 1

A grant program authorized by the HEA under which grants are awarded to help financially needy students meet the cost of their postsecondary education.

The former Federal Perkins Loan Program included loans made under the National Direct Student Loan Program and the National Defense Student Loan Program. This Campus-Based Program provided low-interest loans to financially needy students attending institutions of higher education to help them pay their educational costs. The authority for institutions to make new Federal Perkins Loans ended effective September 30, 2017.

A defender organization established in accordance with section 3006A(g)(2)(A) of title 18, United States Code.

The daily journal of the U.S. federal government. It contains notices, proposed and final regulations, and presidential documents. Regulations first appear in the register and, when final, are incorporated in the Code of Federal Regulations.

A nationwide system for clearing and settling checks drawn on depository institutions located in all regions of the United States.

The percentage of a school's annual expenditures in the Campus-Based Programs paid in an award year from a school's current authorization or from federal funds carried forward or back.

The office within the U. S. Department of Education that manages the Federal Student Aid Programs.

Programs authorized under Title IV of the Higher Education Act (as amended) that provide financial assistance to eligible students enrolled in postsecondary educational programs.

Web-based management assessment modules for helping schools assess their compliance with FSA program requirements and enhance services. Each assessment is self-guided and contains links to applicable laws and regulations. Available at fsapartners.ed.gov.

Annual Department publication that explains the requirements for participation in the Title IV programs.

Serves the public by providing information, in both English and Spanish, about the Title IV programs and the application process. Customers include students, parents, and financial aid administrators seeking general information about federal grant and loan programs and specific assistance with the FAFSA. 800/4-FED-AID (800-433-3243); 334-523-2691; TDD/TTY 800-730-8913 for the deaf or hearing impaired.

A national training conference, hosted by Federal Student Aid.

A program that provides grant assistance to students with financial need who are in undergraduate programs and have not earned a bachelor's degree or first professional degree. Priority in awarding FSEOG funds is given to students who have exceptional financial need.

This includes federal tax information for any student or contributor on the FAFSA form, including:

Financial information received from the IRS which has to stay within the FTIM system. The FTI fields are not shared with any FSA systems. Schools are provided this information but only on the ISIR.

A system that receives, stores, uses, and controls individual FTI received from the IRS for federal financial aid eligibility determination.

A program that provides funds for part-time employment to help needy students to finance the costs of postsecondary education. Students can receive FWS funds at approximately 3,400 participating postsecondary institutions. Hourly wages must not be less than the federal minimum wage.

A Campus-Based Title IV program that provides part-time employment to students attending institutions of higher education who need the earnings to help meet their costs of postsecondary education and encourages students receiving FWS assistance to participate in community service activities.

Federal Risk and Authorization Management Program

The Federal Reserve Bank's nationwide real time gross settlement electronic funds and securities transfer network. Fedwire® is a credit transfer system. Each funds transfer is settled individually against an institution's reserve or clearing account on the books of the Federal Reserve. The transaction is considered an irrevocable payment when processed.

Family Education Rights and Privacy Act

Federal Funding Accountability and Transparency Act of 2006 or Transparency Act—Public Law 109-282, as amended by section 6202(a) of Public Law 110-252 (31 U.S.C. 6101).

Federal Family Education Loan

Federal Insurance Contributions Act.

Relating to the collection or receipt, management, protection, accounting, investment and disposition of cash or other assets in which federal student aid recipients and the federal government have an ownership interest.

An entity that holds assets in trust. A school holds federal student aid funds in trust for recipients and the federal government.

An activity that relates to the collection or receipt, management, protection, accounting, investment and disposition by a school of cash or other assets in which federal student aid recipients and the federal government have an ownership interest that the school must uphold.

A fiduciary relationship exists when a school recognizes, agrees to, or consents to undertake fiduciary activity. Participating institutions have a fiduciary responsibility to ensure federal student aid funds are used as intended.

The written notice of a determination issued by a designated Department official based on an audit of

FSA Handbook, Volume 4, Chapter 4

A letter that a lender sends to a borrower demanding full payment of a delinquent account. A demand letter is required as part of the due diligence procedures for collecting a loan that is about to go into default or a loan made to an ineligible student.

An electronic notification that tells a school the final allocations for each Campus-Based program in which it participates.

Document containing the data used by the Department to determine a school's allocation for each Campus-Based Program in which the school participates and how each final allocation was determined.

The letter from the Department that follows an institution's response to the Program Review Report (PRR). The FPRD informs the institution of Department's final determination regarding each of the findings in the PRR and identifies liabilities, if any; provides instructions for payment of liabilities; notifies the institution of its right to appeal the existence of and amount of liabilities; and closes the program review if appropriate.

FSA Handbook, Volume 4, Chapter 4

Final regulations published in the Federal Register with a scheduled effective date. A Final Rule is generally preceded by a Notice of Proposed Rulemaking (NPRM) containing draft proposed regulations for public comment. The final regulations may incorporate changes made in response to public comments on the NPRM.

A student's or parent's checking or savings account, prepaid card account, or other consumer asset account held directly or indirectly by a financial institution.

Independent, private, non-government group which is authorized by the accounting profession to establish generally accepted accounting principles in the United States.

In EDExpress, FAA Access to CPS Online is available from the "View" menu and from the FAFSA and Student Inquiry tabs. FAAs can use the site to access saved applications, submit FAFSAs, make corrections, request Institutional Student Information Records (ISIRs), compare ISIRs, verify ISIR data, apply a student signature, and check the processing status of student records. compare ISIRs, verify ISIR data, apply a student signature, and check the processing status of student records.

A process through which a student appeals a negative finding on his or her Satisfactory Academic Progress (SAP) status. A student's right to appeals is granted at the option of the school. If the school agrees to consider the appeal, the school may place the student on financial aid probation in the interim. See Satisfactory Academic Progress.

This system is the general ledger for FSA. FMS works with G5 to communicate financial information and to deliver federal cash to schools.

Transmitted to student aid applicants, a summary of available student aid which an applicant may expect to receive. May be sent via a paper award letter or other electronic means such as email.

FSA Handbook, Volume 2, Chapter 6

The total student assistance —loans, grants, scholarships, and need-based employment—offered to a student.

A status under which a student can remain Title IV-eligible after being found not to be making Satisfactory Academic Progress (SAP). A student placed on probation must either be on-track to meet SAP requirements by the end of the subsequent payment period (no academic plan required, based on the financial aid appeal), or, if the student will require more than one payment period to meet SAP requirements, the school must require the student to develop an academic plan to meet the SAP requirements. This status is available only when a school permits an appeal. The student’s progress towards meeting the SAP requirements must be assessed after each payment period, and the student may retain Title IV eligibility as long as they are meeting the progress requirements of their academic plan.

A temporary, one payment-period status which allows a student who failed to achieve Satisfactory Academic Progress (SAP) to continue receiving aid. Failing to achieve SAP after one payment period results in a loss of eligibility. Students may, at the option of the school, appeal their SAP status. This status may only be used by schools that check SAP at the end of each payment period.

A bank, savings association, credit union, or any other person or entity that directly or indirectly holds a financial account belonging to a student or parent that issues an access device associated with a financial account and agrees with a student or parent to provide EFT services.

An eligible student’s cost of attendance (COA) minus Student Aid Index (SAI) minus other financial assistance (OFA).

FSA Handbook, Volume 3, Chapter 3

The main financial statements (income statement, balance sheet, statement of cash flows, statement of retained earnings, statement of owner's equity) plus other financial information, such as annual reports, press releases, etc.

The obligation for a school to

The financial responsibility standards (34 CFR 668 Subpart L) can be divided into two categories: (1) general standards, which are the basic standards used to evaluate a school's financial health, and (2) performance and affiliation standards, which are standards used to evaluate a school's past performance and to evaluate individuals affiliated with the school.

The presentation of financial data, including accompanying notes derived from accounting records and intended to communicate an entity's economic resources or obligations at a point in time, or the changes therein for a period of time, in accordance with a comprehensive basis of accounting.

An opinion that the financial statements present fairly, in all material respects, the financial position of the company as of the balance sheet date and the results of its operations and its cash flows for the period then ended in conformity with the applicable financial reporting framework. The opinion also includes an identification of the applicable financial reporting framework.

Federal Information Processing Standards

Any mechanism or system related to the detection of a fire, the warning resulting from a fire, or the control of a fire. This may include sprinkler systems or other fire extinguishing systems, fire detection devices, stand-alone smoke alarms, devices that alert one to the presence of a fire, such as horns, bells, or strobe lights; smoke-control and reduction mechanisms; and fire doors and walls that reduce the spread of a fire.

34 CFR 668.49(a)

Any instance in which a person is killed as a result of a fire, including death resulting from a natural or accidental cause while involved in fire control, attempting rescue, or escaping from the dangers of a fire; or dies within one year of injuries sustained as a result of the fire.

34 CFR 668.49(a)

Any instance in which a person is injured as a result of a fire, including an injury sustained from a natural or accidental cause, while involved in fire control, attempting rescue, or escaping from the dangers of the fire. The term "person" may include students, employees, visitors, firefighters, or any other individuals.

34 CFR 668.49(a)

A firefighter is an individual who is employed by a federal, state, or local firefighting agency to extinguish destructive fires; or provide firefighting related services such as

For purposes of determining whether a student must complete entrance counseling before receiving the first disbursement of a Direct Subsidized Loan or Direct Unsubsidized Loan, an individual who has not received a prior Direct Subsidized Loan, Direct Unsubsidized Loan, Subsidized or Unsubsidized Federal Stafford Loan, or Federal SLS Loan.

For purpose of determining whether a graduate or professional student must complete entrance counseling before receiving the first disbursement of a Direct PLUS Loan, an individual who has not received a prior student Direct PLUS Loan or Federal PLUS Loan.

An entering undergraduate who has never attended any institution of higher education. It includes a student enrolled in the fall term who attended a postsecondary institution for the first time in the prior summer term, and a student who entered with advanced standing (college credit earned before graduation from high school).

Fiscal Operations Report and Application to Participate

A reference document that provides programmer specifications and record layouts for schools or other organizations needing to design customer software systems to interface with the Department's FISAP on the Web process.

Parts III, IV, V, and VI of the FISAP on which schools report on their activities in the Campus-Based Programs. Sometimes referred to as the FISOP.

Electronic application through which schools provide information on Campus-Based expenditures made during the award year just completed, and then apply for funds in the Campus-Based Programs in the upcoming award year.

Financial records that reflect each federal student aid program transaction; and general ledger control accounts and related subsidiary accounts that identify each federal student aid program transaction, and separate those transactions from all other institutional financial activity, including the records specified in 34 CFR 668.24(c).

A 12-month period used for budgeting, accounting, and financial reporting purposes, which may or may not align with the calendar year. For example, a school district might have a fiscal year of July 1 of one year through June 30 of the following year.

Federal Information Security Management Act

A cost that does not vary in the short term with the volume of activity.

An interest rate on a loan that remains the same for the entire term of the loan.

Federal Managers' Financial Integrity Act of 1982

Financial Management System

Freedom of Information Act

Part of "living expenses;" replaces the term “room and board” as a component within a student’s Cost of Attendance (COA). FSA Handbook, Volume 3, Chapter 2

A period during which a borrower may temporarily stop making loan payments, temporarily make smaller payments, or extend the time for making payments. A borrower who does not meet the eligibility requirements for a deferment may, at the discretion of the loan holder, receive a forbearance if the borrower is temporarily unable to make loan payments for reasons including, but not limited to, financial hardship or illness. Borrowers are also entitled to receive forbearance if they meet certain regulatory eligibility criteria.

34 CFR 682.211 (FFEL Program)

34 CFR 685.205 (Direct Loan Program)

A temporary postponement of payments. In the Perkins Program forbearance is available for all loans, regardless of when they were made. Under Perkins forbearance, a borrower may alternatively request an extension of time allowed for making payments, or the acceptance of smaller payments than were previously scheduled.

34 CFR 674.33(d)

A method of enforcing payment of a debt secured by a mortgage by seizing the mortgaged property. Foreclosure terminates all rights that the mortgagor has in the mortgaged property upon completion of due process through the courts.

The amount of foreign earned income for which a U.S. citizen or permanent residence received an exemption on their federal tax return.

Any gift of money or property from a foreign source. In certain circumstances, schools are required to report foreign gifts to the Department.

FSA Handbook, Volume 2, Chapter 6

An entity that is

A school not located in a state. See State

A foreign source is

In the Direct Loan and FFEL programs, cancellation of a loan debt in exchange for the borrower performing certain types of service.

This will either be A, B or C. It is the formula calculation that was used to calculate the SAI.

Dear Colleague Letter designation for financial partners (published before January 2013)

Federal Perkins Loan Program

Final Program Review Determination

See FAFSA Processing System

A flag set to indicate that FAA needs to review the transaction. Comment codes will indicate the action that needs to be taken. FPS C Flag is the new name for the SAR C Flag (SAR C Code).

Call center that responds to questions about the FAFSA Processing System (FPS), the Student Aid Internet Gateway (SAIG), the FAFSA Partner Portal, and assistance with software products such as EDconnect and EDExpress. Phone: 800-330-5947, 8:00 a.m. to 8:00 p.m. (ET), Monday through Friday.

Federal Register

Federal Reserve Bank

Federal Reserve Communications System

The student aid application provided for under section 483 of the HEA, which is used to determine an applicant's eligibility for the federal student aid programs. See Student Aid Application.

The Freely Associated States are comprised of the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. Students from one of the Freely Associated States are eligible noncitizens who are potentially eligible for certain types of Title IV aid.

FSA Handbook, Volume 1, Chapter 2

A period during which a school is temporarily prevented from drawing down cash until unsubstantiated cash previously drawn down is substantiated by submitting actual disbursements. Pertains to schools using the Advance Payment funding method.

Financial Services (in the U.S. Department of Education)

Federal Student Aid, an office of the Department of Education

Allows users to get an estimate of their federal student aid, including their SAI, Pell Grants, Direct Loans, and Federal Work Study.

See “Account Username and Password (FSA ID).”

Federal Student Aid Information Center

An e-mail listserv through which schools can ask technical questions about Federal Student Aid systems, software, and mainframe products. Answers are provided by technical experts at Federal Student Aid. For more information on subscribing to FSATECH, go to ed.gov/offices/OSFAP/services/fsatechsubscribe.html.

Federal Supplemental Educational Opportunity Grant Program

Students with the lowest SAI who will also receive Pell Grants in an award year at a school. A school must make SEOG awards to all students in its first selection group before awarding SEOG funds to students in its second selection group.

Students with the lowest SAIs who are not receiving Pell Grants. If a school has SEOG funds remaining after making awards to all its Pell Grant recipients for the award year, it may make SEOG awards to students in the second selection group.

Full-time. See Full-Time Student.

Full-time Equivalent

Federal Tax Information

The FTIDM system is a new system that was implemented with SABER IDR for IDR and further expanded for FAFSA. It houses the FTI data.

The new Student Aid Internet Gateway (SAIG) mailbox, specifically designed to securely exchange batch data with Federal Student Aid Application Systems, which includes, among other things, FAFSA data and FTI that are provided to our partners via an ISIR. FTI provided via the SAIG mailbox will be labeled as CUI//SP-TAX. For more information, see Controlled Unclassified Information/Specified Tax (CUI//SP-TAX) definition above.

The FTI-SAIG system is a store-and-forward mailbox application that supports the secure electronic exchange of Title IV data over the internet. It provides telecommunications support for the transmission of data between Federal Student Aid (FSA) systems, partners, and other federal entities. FTI-SAIG is being established to allow transmission of FTI data as part of the Institutional Student Information Record (ISIR) in a highly secure environment.

An enrolled student carrying a full-time academic workload, as determined by the institution, under a standard applicable to all students enrolled in a particular educational program.

FSA Handbook, Volume 1, Chapter 1

34 CFR 668.2(b)

A teacher who meets the standard used by a state in defining full-time employment as a teacher. For an individual teaching in more than one school, the determination of full-time is based on the combination of all qualifying employment.

34 CFR 686.2(d)

A fund established and maintained according to 34 CFR 674.8(a).

One of the ways a school can match its federal allocation in the FSEOG Program. In this approach, the school establishes an FSEOG account for federal program funds and deposits the required 25% qualified nonfederal matching share into the fund. The matching funds must be deposited at the same time the federal funds are deposited. Awards to FSEOG recipients are then made from this mixed fund. Schools using the fund-specific method must deposit their institutional match at the time they receive the federal share funds.

In the Campus-Based Programs, the principal that the amount available for awards is the federal share, plus the institutional match, minus the applicable Administrative Cost Allowance.

The system replacing the IRS Data Retrieval Tool (DRT) to transfer an individual’s federal tax information (FTI) to the Department. FA-DDX allows the Department to request, and the IRS to transfer, FTI to the FTIM system for use in determining a student’s federal financial aid eligibility. For more information see Federal Tax Information Module (FTIM).

Federal Work-Study Program

Fiscal Year

Dear Colleague Letter designation for guaranty agency letters (published before January 2013)

G5 is a delivery system that supports program award and payment administration. This system is used by the Department to process school-specific obligations and to make payments (drawdowns) against those obligations. G5 communicates with the COD system, is part of EDCAPS, and interfaces directly with U.S. Treasury's Federal Reserve System. G5 is the system through which schools request and return Title IV funds.

A statement for a school's G5 awards that displays both cumulative and detailed information on drawdown activity, refunds, adjustments, available balances, and authorization changes for each award.

The Department's call center that is responsible for assisting G5 customers. The hotline phone number is 888-336-8930, the email address is obssed@servicenowservices.com .

Guaranty Agency

Generally Accepted Accounting Principles

Generally Accepted Auditing Standards

Generally Accepted Government Auditing Standards

All nondegree educational programs offered by public and nonprofit institutions and virtually all academic programs offered by proprietary institutions of higher education. These programs prepare students for "gainful employment in a recognized occupation."

FSA Handbook, Volume 2, Chapter 2

Grant Award Number

Government Accountability Office (formerly General Accounting Office)

The withholding of an individual's funds by an entity for the payment of a debt in accordance with a court order or other legal or equitable procedure. No Title IV grant, loan, or work assistance (or property traceable to that assistance) is subject to garnishment or attachment except to satisfy a debt owed to the Department.

Government Auditing Standards

Governmental Accounting Standards Board

Gainful Employment

Gaining Early Awareness and Readiness for Undergraduates Program

General Education Development certificate or General Equivalency Diploma. Equivalent of a high school diploma.

Dear Colleague Letter designation for general letters

Accounts for receipts not earmarked by law for a specific purpose.

A book of original entry that requires that the account being debited and the account being credited be listed along with the respective amounts. Because of accounting software and special journals there are relatively few entries made into the general journal.

That part of the accounting system which contains the balance sheet and income statement accounts used for recording transactions.

Uniform minimum standards of and guidelines to financial accounting and reporting. Currently, the Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), and the Federal Accounting Standards Advisory Board (FASAB) are authorized to establish these principles.

Standards governing the conduct of external audits by CPAs, as determined by the Auditing Standards Board (ASB) of the AICPA.

Financial assistance, such as grants and scholarships, that do not need to be repaid.

Government owned, contractor operated

The accounting guideline that allows the readers of financial statements to assume that the organization being audited will continue in operation long enough to realize its investment in assets through operations (as opposed to sale). An audit statement must note an opinion if the accountant performing the audit believes that the assumption is in doubt.

Independent, non-partisan agency that assists Congress in investigating and reporting on government's effectiveness in using public funds.

Commonly referred to as the "Yellow Book," it contains standards for audits of government organizations, programs, activities, and functions, and of governmental funds received by contractors, nonprofit organizations, and other non-government organizations. Revisions are issued as required by the Comptroller General of the United States.

Official promulgations by the Governmental Accounting Standards Board (GASB) and, if not superseded, part of generally accepted accounting principles applicable to state and local governmental entities.

Group authorized by the accounting profession to establish generally accepted accounting principles (GAAP) applicable to state and local governmental entities.

Grade Point Average

Government Printing Office

A period of time following a borrower’s period of enrollment and preceding the repayment period start date for a loan during which the borrower is not required to make payments. This period is six months for Direct Loans and FFEL Program loans. For Federal Perkins loans, Defense loans, and NDSLs, see Initial Grace Period.

Classification of a student by academic year at a school; e.g. freshman, sophomore, or first-year, second-year, etc. A student's grade level is measured according to standards established by the school. Grade level helps determine a student's annual loan limit.

A cumulative measure of a student's grades over time where the grades have been converted to a numerical scale.

For a Direct Loan borrower enrolled in a program of study that is greater than one academic year in length, the borrower's advancement through the program for purposes of determining when a borrower becomes eligible for a higher Direct Loan annual loan limit. For undergraduate students, the Direct Loan annual loan limits increase as a student advances in grade level throughout a program.

FSA Handbook, Volume 8, Chapter 4

A student who

34 CFR 668.2(b)

Unique, 11-character "number" that identifies each grant award issued by a specific program office to a specific grantee. All funds are requested (and returned) using the Grant Award Number. The following is an example of a Grant Award Number and an explanation of the parts that make up the number: P031B151234

An entity (not a person) that applies for and receives a grant award from the Department. The grantee is responsible for ensuring the grant is administered in accordance with program regulations.

General Services Administration

A state or private nonprofit organization that has an agreement with the Department under which it will administer FFEL Program loans.

Graphical User Interface

An enrolled student who is carrying a half-time academic workload, as determined by the institution, that amounts to at least half of the workload of the applicable minimum requirement outlined in the definition of a full-time student.

34 CFR 668.2(b)

Children ages 3 through 21, inclusive, who require special education and related services because they are

In the Perkins Program, lowering a borrower's scheduled payments, for up to one year at a time, if the borrower is scheduled to pay the $40 minimum monthly payment and the school determines that the borrower is unable to make the scheduled payments due to hardship, such as prolonged illness or unemployment.

FSA Handbook, Volume 6, Chapter 4

A crime reported to local police agencies or to a campus security authority that shows evidence that the victim was intentionally selected because of the perpetrator’s bias against the victim based on the victim's actual or perceived race, gender, gender identity, religion, sexual orientation, ethnicity, national origin, or disability. Schools are required to report hate crime statistics to the Department.

FSA Handbook, Volume 2, Chapter 6

Historically Black Colleges and Universities

Heightened Cash Monitoring

Heightened Cash Monitoring 1 Payment Method

Heightened Cash Monitoring 2 Payment Method

Higher Education Act

A crossover term funded out of the upcoming award year. In the Direct Loan Program, a summer term that is attached to the following fall through spring Scheduled Academic Year for purposes of monitoring annual loan limits. See also Trailer.

Health Education Assistance Loan Program

There are two levels of heightened cash monitoring— Heightened Cash Monitoring 1 (HCM1) and Heightened Cash Monitoring 2 (HCM2), which the Department uses to closely monitor the expenditure of federal funds by schools when there are concerns about a school’s financial stability, compliance with Title IV requirements, reporting accuracy, or overall integrity, including indications of misconduct, fraud, or other oversight issues.

FSA Handbook, Volume 4, Chapter 1

34 CFR 668.162(c) (Reimbursement)

34 CFR 668.162(d) (Heightened Cash Monitoring)

High-need fields are

34 CFR 686.2(d)

Individuals under the age of 21 who are low-income or at risk of abuse or neglect, have been abused or neglected, have serious emotional, mental, or behavioral disturbances, reside in placements outside their homes, or are involved in the juvenile justice system.

Federal legislation passed in 1965, with amendments and reauthorizations subsequently passed, authorizing federal postsecondary student financial aid programs and mandating that the programs be regulated and administered by the Department.

A law that authorizes the Department to issue waivers and modifications of certain regulatory and statutory Title IV program requirements to ensure that military members who receive Title IV aid are not penalized due to their military service. The HEROES Act requires the Department to announce these waivers and modifications in a notice published in the Federal Register.

See Loan Holder.

Under a consortium or contractual agreement, the school where a student is enrolled in a degree or certificate program.

The school where students are taking part of their program requirements through either a consortium or contractual agreement.

See Family Size.

Hispanic-Serving Institution

Information Technology

Information Assurance

Interagency Agreement

Identity Access Management 

Income-Based Repayment Plan

Institutional Base Salary

Institutional Capital Contribution (Perkins)

Internal Control Document

Income-Contingent Repayment Plan

Information for Financial Aid Professionals, a former Federal Student Aid (web site) that was replaced by the Knowledge Center.

Inspector General

Institution of Higher Education

The amount of Title IV program funds a school needs to make disbursements within three business days following the date the school receives the funds. This definition of immediate need applies to all Title IV program funds (other than Perkins Loan funds), regardless of whether the school draws down funds by electronic funds transfer (EFT) through the ACH or through FEDWIRE.

FSA Handbook, Volume 4, Chapter 1

The status conferred on a noncitizen under the Immigration and Nationality Act of 1952, as amended, 8 U.S.C. 1182.

Any payment made in an incorrect amount (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements and includes any payment to an ineligible recipient, any payment for an ineligible service, any duplicate payment, payments for services not received, and any payment that does not account for credit for applicable discounts. (See Overaward and Overpayment.)

In the Direct Loan Program, the status of a Direct Subsidized Loan or Direct Unsubsidized Loan made to a student who is enrolled at an eligible institution on at least a half-time basis and who has not yet entered the grace period on the loan. If the student ceases to be enrolled on at least a half-time basis and enters the 6-month grace period on the loan, but resumes at least half-time enrollment before the end of the grace period, the loan returns to in-school status and the student will receive a full six-month grace period when the student drops below half-time enrollment.

If a Direct Subsidized Loan or Direct Unsubsidized Loan borrower who has entered the repayment period on the loan following the conclusion of the 6-month grace period later re-enrolls at an eligible institution on a half-time basis, the student may receive an in-school deferment on the loan for as long has he or she remains enrolled at least half-time. When the student ceases to be enrolled at least half-time, the loan returns to repayment status.

Goods or services provided instead of money.

A situation in which a student has inadvertently received Title IV loan funds in excess of annual or aggregate loan limits. A student who has inadvertently overborrowed is ineligible to receive additional Title IV funds until the student repays the excess loan amount in full or makes arrangements that are satisfactory with the loan holder to repay the excess amount.

FSA Handbook, Volume 8, Chapter 1

34 CFR 668.35(d)

A disbursement of Title IV funds that a school inadvertently makes to a student after the student has ceased attendance, but before the date of the school's determination that the student withdrew.

FSA Handbook, Volume 5, Chapter 2

A student who is serving a criminal sentence in a federal, state, or local penitentiary, prison, jail, reformatory, work farm, or other similar correctional institution. A student is not considered incarcerated if that student is in a half-way house or home detention or is sentenced to serve only weekends.

The requirement that no more than 25% of a school's regular students be incarcerated for the school to be eligible to participate in the Title IV programs. A public or private nonprofit school can ask the Department to waive this limitation in certain circumstances.

The requirement that a school not provide any commission, bonus, or other incentive payment based in any part, directly or indirectly, upon success in securing enrollments or the award of financial aid to any person or entity engaged in any student recruitment or admission activity or in making decisions regarding the award of Title IV program funds.

In the Perkins Loan Program, steps a school may take to encourage a Perkins Loan borrower to make regular payments.

FSA Handbook, Volume 6, Chapter 4

Prior to the 2024-25 award year, an element used in the EFC calculation. Beginning with the 2024-25 award year, used for work-based programs, but not connected to the SAI.

Duties that should be separated under an internal control system that relies on separation of function or duties to reduce the chance of errors or fraud. For example, one person should not be in a position to both embezzle funds and to hide the embezzlement by changing the recorded accountability.

Additional Direct Unsubsidized Loan eligibility (beyond the regular Direct Unsubsidized Loan annual and aggregate loan limits) that is available to graduate or professional students who are enrolled at least half-time in a health professions discipline that was eligible under the former Health Education Assistance Loan (HEAL) Program, or in certain naturopathic medical programs, and are eligible for the interim exception as outlined in the One Big Beautiful Bill Act. The increased Direct Unsubsidized Loan amounts are intended to replace loan funds that otherwise would have been available under the HEAL Program but were eliminated under OBBA for new students and students who are not eligible for the interim exception. No students will be eligible for this increased limit as of the 2029-2030 award year.

FSA Handbook, Volume 8, Chapter 4

A word used by accountants to communicate that an expense has occurred and needs to be recognized on the income statement even though no payment was made. The second part of the necessary entry will be a credit to a liability account.

A certified public accountant or a government auditor who meets the "Government Auditing Standards" qualification and independence standards, including standards related to organizational independence.

A student who qualifies as an independent student under section 480(d) of the HEA. A student who satisfies one of the following criteria qualifies as independent:

Any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. Chapter 33), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians (25 U.S.C. 5304). See annually published Bureau of Indian Affairs list of Indian Entities Recognized and Eligible to Receive Services.

Those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved.

One of the ways a school can match its federal allocation in the FSEOG Program. In this approach a school ensures that every student's FSEOG award consists of 75% federal funds and 25% qualified nonfederal funds.

An infant or toddler from birth to age 2, inclusive, who needs early intervention services for specified reasons, as defined in section 632(5)(A) of the Individuals with Disabilities Education Act.

The Federal Student Aid website that was replaced by the Knowledge Center on Federal Student Aid's fsapartners.ed.gov website. The Knowledge Center provides information to financial aid professionals about the Title IV programs.

Information security is the preservation of confidentiality, integrity, and availability. Each of these attributes is defined as follows:

Computing devices, ancillary equipment, software, firmware, and similar procedures, services (including support services), and related resources.

For the Campus-Based Programs, the amount that the Department first allocates to each participating school for an award year from new funds appropriated by Congress, according to statutory allocation formulas. An eligible school receives an initial allocation for each Campus-Based Program in which the school participates.

FSA Handbook, Volume 6, Chapter 1

In the Perkins Loan Program, the period which immediately follows a period of enrollment and immediately precedes the date of the first required repayment on a loan. This period is generally nine months for Federal Perkins loans, Defense loans, and NDSLs made before October 1, 1980, and six months for NDSLs made on or after October 1, 1980. A borrower is only entitled to one initial grace period.

FSA Handbook, Volume 6, Chapter 4

The designated department official authorized to begin an emergency action under 34 CFR 668.83.

Computer controls designed to provide reasonable assurance that transactions are properly authorized before processed by the computer, accurately converted to machine readable form and recorded in the computer, that data files and transactions are not lost, added, duplicated or improperly changed, and that incorrect transactions are rejected, corrected and, if necessary, resubmitted on a timely basis.

Immigration and Naturalization Service (now part of Department of Homeland Security and known as U.S. Citizenship and Immigration Services.)

An institution of higher education, or a proprietary institution of higher education, or a postsecondary vocational institution.

One of three types of institutions eligible for participation in the Title IV programs. The others are a proprietary institution of higher education, and a postsecondary vocational institution.

FSA Handbook, Volume 2, Chapter 1

34 CFR 600.4

Any organization that is directly or indirectly related to a covered institution; and is engaged in the practice of recommending, promoting, or endorsing education loans for students attending such covered institution or the families of such students.

34 CFR 601.2

In the Perkins Loan Program, the institutional funds a school must provide if the school receives a Federal Capital Contribution in an award year.

FSA Handbook, Volume 6

The designation of an institution as public, for-profit, or nonprofit. By definition, an institution of higher education or a postsecondary vocational institution can be either public or private but is always nonprofit. A proprietary institution of higher education is always a private, for-profit institution.

A school must maintain Title IV funds in a depository account. For a school located in a state, the depository account must be insured by the FDIC or NCUA. For a foreign school, the depository account may be insured by the FDIC or NCUA, or by an equivalent agency of the government of the country in which the institution is located. If there is no equivalent agency, the Department may approve a depository account designated by the school.

Financial penalties or repayments that a school must pay to the Department because of incorrect school action or actions. A liability is the difference between the actual expenditures reported by the school in G5 for an Obligation Document Number for the award year and the final allowable expenditures as determined by the auditor, program reviewer, or hearing official.

Loans specific to a college, university, or other post-secondary educational institution and made from institutional funds. Eligibility and loan characteristics will vary among institutions.

The formula a postsecondary institution uses to allocate the school's own financial aid funds and those federal student aid funds for which the student is eligible and over which the school has control.

An electronic record that the Department transmits to an institution that includes an applicant's FAFSA information; personal identification information, and SAI.

Property having no physical existence, such as trademarks, copyrights, patents and patent applications and property, such as loans, notes and other debt instruments, lease agreements, stock and other instruments of property ownership (whether the property is tangible or intangible).