Student Financial Assistance

Frequently Used Financial Aid Terminology

Alternative Loans
These are loans provided by private lending institutions and are not guaranteed by the Federal Government. Your eligibility is based on your credit rating. Applicants with weak credit ratings and non US citizens will need a co-signer. Interest rates are subject to change and may be higher than the federal student loans. Students are urged to apply for all eligible grants and federal loans before resorting to alternative loans. Loan requests should not exceed cost of education minus all other aid received. For information on various alternative loan programs in helping you make a choice of an alternative lender, please visit www.HESCMarketplace.org.

Campus-Based Aid
Funds allocated to WCC by the federal government to support the following programs: Federal Supplemental Education Opportunity Grant (FSEOG), Federal Work-Study (FWS). Awards are offered to students on the basis of financial need. Funds are limited, so students must apply early to receive consideration.

Consolidated Loan
Your eligible federal student loans may be consolidated into one new loan with a longer repayment term and lower monthly payments. Consolidation is designed to make repayment for highly indebted borrowers easier. However, since your overall monthly consolidated payment will be lower, you will end up paying more interest on your loan in the long run. You will lose your grace period and some borrower benefit options which pertained to your unconsolidated loans. Your consolidated loan will be serviced by one lender with one payment due date.

Cost of Attendance
The total cost of attending college, including tuition and fees, room and board, books and supplies, personal expenses and transportation.

Default
Failure to repay a Federal student loan according to the terms agreed to at the time of application. Default may also result from failure to submit a request for loan deferment on time. Default status is recorded on your permanent credit record. Students in default are not eligible for financial aid.

Deferment
It is a process that allows you to postpones payment of the principal and/or interest on a student loan after the repayment period begins. If you are on an unsubsidized deferment and postpone your interest payments, the interest will be capitalized at the end of the deferment.

Direct Loans
These are subsidized and unsubsidized Stafford and PLUS loans directly funded by the federal government.

Disbursement
Payment of financial aid funds to the studentтАЩs account.

EMPN
A legally binding contract between you and the lender that includes all the terms and conditions under which you promise to repay your loan which you complete and submit on line and affix your electronic signature.

Expected Family Contribution (EFC)
The amount you and your family are expected to contribute toward your education as determined by a formula established by the U.S. Congress. The formula considers income and asset information that you reported on the FAFSA.

Financial Need
The difference between the institutionтАЩs cost of attendance and the expected family contribution i.e. familyтАЩs ability to pay.

Forbearance
It is an agreement with the lender that allows you to postpone student loan payments for a predetermined length of time. During forbearance, only the payment of principal is deferred: the interest continues to accrue and you will be responsible for it.

Grace Period
A specified period of time after you graduate, leave school or cease to be enrolled for at least six credits during which you are not required to make payments on student loans. A grace period is usually six months.

Guaranty Agency
The organization that administers the FFEL Program in your state. This agency is the best source of information on FFELP.

Loan Principal
The amount of money you borrow and the sum on which interest is charged.

Origination Fee
A fee that is deducted proportionately (up to 3%) from each disbursement of your loan. This fee is used to cover administrative costs of the federal Direct Loan Program (Stafford subsidized and unsubsidized student loans).

Personal Identification Number (PIN)
A 4-digit PIN from the U.S. Department of Education which provides access to personal information in various student financial aid system over the internet. It is also your electronic signature. This information should be kept confidential; do not share your pin with anyone.

Priority Packaging Date
It is established annually. For Fall applicants, the priority processing date is June 30. For Spring applicants, the priority processing date is October 30. Students who have successfully completed their FAFSA with valid student aid report and have submitted all other necessary information to the college by the relevant priority processing date will have their awards in time to defer against early registration bill due date.

Promissory Note
A legally binding contract between you and the lender that includes all the terms and conditions under which you promise to repay your loan.

Selective Service Registration
Males who were born on or after January 1, 1960, who are at least 18 years old, who are citizens or eligible non-citizens, not currently on active duty in the armed forces, must be registered with selective service in order to receive federal aid. Resident aliens (holders of green cards) are also required to register with Selective Service. Note: this is not the draft.

Servicer
It is a company that your lender hires to perform account services тАУ payment processing, customer relations, or accounting. Your lender still holds (owns) the loan, and there is no additional cost to you.

Valid Student Aid Report
After submitting FAFSA, the Department of Education will process your application and send you a Student Aid Report (SAR). A valid Student Aid Report is one with calculated Expected Family Contribution (EFC) based on the processing results of your FAFSA.

Variable Interest Rate
Interest rates that change periodically (e.g. quarterly, annually). The interest rates for Federal Stafford and PLUS Loans are set by the government each year and change annually on the first day of July.

Changing School Plans
To have your financial aid information sent to another school you will need to add that collegeтАЩs code to you financial aid application(s). To make corrections to a processed FAFSA, go to www.fafsa.ed.gov and click on тАЬmake corrections to a processed FAFSA.тАЭ Westchester Community CollegeтАШs federal school code is 002881. For TAP, go to www.hesc.com and click on тАЬCheck Your Account.тАЭ Westchester Community College TAP code is 2160.

If you had applied for a student loan at your previous college, you must restart the process at Westchester Community College by first completing a federal Direct Loan entrance at www.Studentloans.gov.

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