Financial Aid Dictionary

The Financial Aid Dictionary

Sometimes it seems like financial aid is just a jumble of terms and acronyms that mean nothing to you and are hard to understand. Below is a list of common financial aid terms. If you don't see a term on this list, but think that it should here, please let us know by emailing us at finaid@raritanval.edu.

Academic Competitiveness Grant (ACG)

ACG awards range from $750 - $1300. In order to be eligible for this grant you must be:

• A U.S. citizen;

• A full time student;

• Receiving a Federal Pell Grant;

• You must have completed a rigorous high school program as defined by the Secretary of Education in order to be eligible to receive this grant (after January 1, 2006 for a first year award and after January 1, 2005 for a second year award); and

• In order to receive a second year award you must have obtained at least a 3.00 cumulative GPA by the end of your first academic year.

Award Letter

This is an official document from the financial aid office that lists all of the financial aid you have been awarded. The award letter also has important information about how your financial aid award was determined and documents that may be required in order for our office to finish processing your financial aid award.

Book Voucher

Cost of Attendance (COA)

When awarding aid, the Financial Aid Office uses budgets that reflect expenses you may incur during a traditional nine-month academic year. Please note that these budgets are not the actual charges that appear on your semester bill. The estimated Cost of Attendance for a typical full time in-county resident for the academic year is:

Living With Parents		Living Independently
Tuition and Fees	2664	Tuition and Fees	2664
Books/Supplies	1100	Books/Supplies	1100
Room and Board	3500	Room and Board	8000
Transportation	1200	Transportation	1200
Miscellaneous	1000	Miscellaneous	1000
Enrollment Fee	60	Enrollment Fee	60
Technology Fee	100	Technology Fee	100
Total	9624	Total	14124

Tuition and Fees – Tuition and fees are per credit charges based on the current rate structure including tuition, general registration fee, and a parking fee.

Books and Supplies – Books and supplies costs are estimated based on the number of credits the student is enrolled in.

Room, Board and Travel – Room, Board and Travel are based on estimated charges a student may incur while living with their parents or out of the home. RVCC does not have on campus housing.

Students who wish to have their cost of attendance adjusted based on other charges must submit an appeal in writing to the financial aid office.

Default

Failure to repay a loan according to the terms agreed to when the promissory note was signed. Default on Federal Student and Parent loans occurs after 270 days of nonpayment. Defaulting on a student or parent loan can result in loss of federal aid eligibility, will affect your credit rating for up to 7 years and may incur other legal ramifications.

Deferment

A postponement of repayment under various, specific circumstances. Student borrowers may request specific periods of deferment based on economic hardship, an in-school status, or an inability to find employment. The Federal government pays the interest on all subsidized federal loans during a qualified deferment period.

In school deferment is when a Stafford Loan borrowers does not need to begin repaying their Stafford Loans because they are enrolled for 6 credits.

Disbursement

A transaction that occurs when your financial aid funds are credited to your student account.

Entrance/Exit Counseling

Entrance and Exit counseling is a process through which you will be informed/reminded about your rights and responsibilities as a borrower. You will need to complete Entrance Counseling when you borrow a loan and Exit Counseling when you enter your grace period.

EOF - Educational Opportunity Fund

EOF awards currently range from $313 to $1050 per year. Students must be eligible for TAG and be accepted into the EOF program. Click here for more details about the EOF program.

Expected Family Contribution (EFC)

The information you report on your Free Application for Federal Student Aid (FAFSA) is used to calculate your Expected Family Contribution (EFC). Schools use the EFC to determine your federal student aid eligibility and financial aid award.

The EFC is a measure of your family’s financial strength and is calculated according to a formula established by law. Your family's taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) are all considered in the formula. Also considered are your family size and the number of family members who will attend college or career school during the year.

Note: Your EFC is not the amount of money your family will have to pay for college nor is it the amount of federal student aid you will receive. It is a number used by your school to calculate the amount of federal student aid you are eligible to receive.

Federal Work Study (FWS)

The Federal Work Study (FWS) Program is a federally funded financial aid program designed to provide part-time employment for students with unmet financial need. Unlike other financial aid programs that are credited directly to the students account, Work Study must be earned by working at RVCC. All FWS positions at RVCC are on-campus; there are no off-campus positions available. FWS Students receive a bi-weekly payroll check like other part time student workers. The amount of your hourly wage & the amount of your work study allocation will determine how many hours you are allowed to work per semester. When the FWS allocation is reached, the student must stop working! RVCC receives a limited amount of FWS funds per fiscal year from the Federal Government. The Financial Aid Office monitors and administers this program. For more information on this program see our Student Employment page.

Financial Need

Financial need is determined by subtracting the Expected Family Contribution (EFC), as determined by the FAFSA, from the Cost of Attendance (COA) determined by the college. The total of a student's need based aid cannot exceed their unmet financial need.

Forbearance

Similar to a deferment, a lender may grant a borrower a forbearance in certain circumstances, which would delay payment of their loan, lower the payment amount or allow interest-only payments. Such circumstances include, serving in a national service position or economic hardship. Parent PLUS loan borrowers may be granted forbearance while their children are enrolled in college at least half time.

Grace Period

The period of time that begins when a student is no longer eligible for deferment but before repayment begins. For Stafford Loans, the grace period is 6 months. Borrowers are entitled to one (1) six month grace period.

Grants

A type of financial aid that does not have to be repaid. Generally, grants are for undergraduate students and the grant amount is based on need, school cost, and enrollment status

Guarantor

An agency that insures student loans against default. If the borrower defaults, dies or becomes totally and permanently disabled, the guarantee agency reimburses the lender for the balance remaining on the loan.

Lender

The institution that provides the money to be borrowed in a loan program.

Loan

Borrowed money that must be repaid with interest. Parents and students may each borrow to pay education expenses for dependent students who are enrolled at least half-time. Annual maximum loan amounts increase with each year of completed study.

Master Promissory Note (MPN)

A Master Promissory Note is a binding legal document that lists the conditions under which you're borrowing and the terms under which you agree to repay your loan. You only need to sign one MPN per lender per college.

National Student Loan Data System (NSLDS)

A database of federal student loan borrowers. If student borrowers want to find out information about his/her student loans, they can use the NSLDS Financial Aid Review service, operated by the U.S. Department of Education. By entering a social security number, date of birth, and their Federal PIN, the student will be able to access his/her current loan information online. You can access NSLDS on line at www.nslds.ed.gov. You will need your Federal PIN to login.

Need-Based Aid

Need-based aid is financial aid that is awarded based on a student's financial need. Examples of need based aid are: Federal Pell Grant, Federal Subsidized Stafford Loan, Academic Competitiveness Grant, Tuition Aid Grant, and others. For a complete list of all need-based aid please see Types of Financial Aid.

New Jersey State Tuition Assistance Reward Scholarship (NJ STARS)

NJ STARS is available to students who graduate in the top 20% of their high school class. Students must enroll full time, complete the FAFSA, meet the state residency requirements and submit all requested documentation to HESAA. For more information on the NJ STARS program, please see our NJ STARS page.

Pell: Federal Pell Grant

Pell Grant awards range from $400 - $4731 for the 2008-2009 academic year. Students who posses a bachelor’s degree are not eligible for the Pell Grant.

A PIN or Personal Identification Number is used to sign your FAFSA electronically. Both the student and at least one parent must have PIN numbers in order to fill out the FAFSA on the web. Go to www.pin.ed.gov or apply for the PIN while filling out the FAFSA on the web.

PLUS Loan

Federal loans for parents of dependent undergraduate students enrolled at least half time. Like Stafford loans, they’re made through a private lender. PLUS loans are unsubsidized and the federal government has set the interest rate at 8.5%. To get a PLUS loan, you must qualify for credit. Parents or graduate students may borrow up to the cost of attendance, minus any other financial aid received.

Repayment

Repayment is the term used to refer to the time period when a borrower is expected to be repaying his or her loan. Repayment for Stafford loans begins after the grace period has ended or after the last date of attendance for a borrower who no longer has a grace period.

Satisfactory Academic Progress for Financial Aid (SAP)

All students applying for financial aid must meet the Satisfactory Academic Progress (SAP) for Financial Aid standards listed below:

• You must successfully complete 67% of your attempted credits. Credits attempted but not successfully completed include grades of F, W, I, X, and U. All courses, including developmental and ESL courses are considered in this calculation.

• You must achieve at least a 2.00 cumulative GPA by the end of your fourth semester. All non-developmental courses are considered in this calculation.

• You cannot attempt more than 150% of the credits required for your degree or certificate.

Federal Regulations make no provisions for academic renewal. All courses in a student’s academic history will be reviewed in regards to financial aid eligibility.

SAP will be evaluated each academic year for students pursuing an Associate Degree and each semester for students pursuing a Certificate.

If you do not meet the SAP standards and you feel that you have extenuating circumstances you may appeal for one (1) semester of probationary financial aid.

If your appeal is approved and you then do not meet the terms of your appeal after one semester your financial aid will be cancelled and you must take courses at your own expense until you meet the minimum SAP standards.

If you have attempted 150% of the credits required for your program you will no longer be eligible for financial aid.

For the complete policy for SAP, please click here.

Scholarships

Financial aid awards that do not have to be paid back. Scholarships are given to students who demonstrate or show promise of high achievement in areas such as academics and athletics.

Selective Service

Almost all male U.S. citizens, and male aliens living in the U.S., who are 18 through 25, are required to register with Selective Service. It's important to know that even though he is registered, a man will not automatically be inducted into the military. In a crisis requiring a draft, men would be called in sequence determined by random lottery number and year of birth. Then, they would be examined for mental, physical and moral fitness by the military before being deferred or exempted from military service or inducted into the Armed Forces. You can register for the draft online at www.sss.gov.

SEOG - Federal Supplemental Educational Opportunity Grant

SEOG is a Federal need based grant. Limited funding is available for this program.

Stafford Loans

Federal loans made available to students through a private lender and guaranteed by another agency. Stafford Loans can be borrowed by students of any age without a co-signer.

Student Aid Report (SAR)

The Student Aid Report or SAR, is the government’s response to your FAFSA application. The SAR will let you know if you’re eligible for grant assistance. It will also let you make corrections to your FAFSA application by providing you with the answers you gave when you applied. If you see that you made an error, just correct your SAR and mail it back to the government at the address provided. The changes will be made and a new SAR will be sent to you shortly there after. If you have your federal pin # www.pin.ed.gov , you can make the corrections to your FAFSA online. Making corrections online will save you valuable time.

Subsidized Loan

Loans on which the federal government pays the interest until the student enters repayment, as well as when the loan has been granted a deferment; during the deferment period the government pays the interest.

TAG - State of New Jersey Tuition Aid Grant

TAG awards currently range from $205 - $1134 but are adjusted each academic year. Students must be enrolled for at least six (6) credits, meet the state residency requirements and submit all requested documentation to the New Jersey Higher Education Assistance Authority (HESAA).

Unmet Need

Unmet need is the amount of need that remains after all need-based aid has been awarded.

Unsubsidized Loan

Loans on which the student is responsible for paying the interest from the date of disbursement until the loan is paid in full, regardless of enrollment status.

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Raritan Valley Community College

Updated 021608 by EB

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The Financial Aid Dictionary

ACG awards range from $750 - $1300. In order to be eligible for this grant you must be:

• A U.S. citizen;

• A full time student;

• Receiving a Federal Pell Grant;

• You must have completed a rigorous high school program as defined by the Secretary of Education in order to be eligible to receive this grant (after January 1, 2006 for a first year award and after January 1, 2005 for a second year award); and

• In order to receive a second year award you must have obtained at least a 3.00 cumulative GPA by the end of your first academic year.

Tuition and Fees – Tuition and fees are per credit charges based on the current rate structure including tuition, general registration fee, and a parking fee.

Books and Supplies – Books and supplies costs are estimated based on the number of credits the student is enrolled in.

Room, Board and Travel – Room, Board and Travel are based on estimated charges a student may incur while living with their parents or out of the home. RVCC does not have on campus housing.

Students who wish to have their cost of attendance adjusted based on other charges must submit an appeal in writing to the financial aid office.

In school deferment is when a Stafford Loan borrowers does not need to begin repaying their Stafford Loans because they are enrolled for 6 credits.

A transaction that occurs when your financial aid funds are credited to your student account.

Entrance and Exit counseling is a process through which you will be informed/reminded about your rights and responsibilities as a borrower. You will need to complete Entrance Counseling when you borrow a loan and Exit Counseling when you enter your grace period.

EOF awards currently range from $313 to $1050 per year. Students must be eligible for TAG and be accepted into the EOF program. Click here for more details about the EOF program.

The information you report on your Free Application for Federal Student Aid (FAFSA) is used to calculate your Expected Family Contribution (EFC). Schools use the EFC to determine your federal student aid eligibility and financial aid award.

Note: Your EFC is not the amount of money your family will have to pay for college nor is it the amount of federal student aid you will receive. It is a number used by your school to calculate the amount of federal student aid you are eligible to receive.

Financial need is determined by subtracting the Expected Family Contribution (EFC), as determined by the FAFSA, from the Cost of Attendance (COA) determined by the college. The total of a student's need based aid cannot exceed their unmet financial need.

The period of time that begins when a student is no longer eligible for deferment but before repayment begins. For Stafford Loans, the grace period is 6 months. Borrowers are entitled to one (1) six month grace period.

A type of financial aid that does not have to be repaid. Generally, grants are for undergraduate students and the grant amount is based on need, school cost, and enrollment status

An agency that insures student loans against default. If the borrower defaults, dies or becomes totally and permanently disabled, the guarantee agency reimburses the lender for the balance remaining on the loan.

The institution that provides the money to be borrowed in a loan program.

Borrowed money that must be repaid with interest. Parents and students may each borrow to pay education expenses for dependent students who are enrolled at least half-time. Annual maximum loan amounts increase with each year of completed study.

A Master Promissory Note is a binding legal document that lists the conditions under which you're borrowing and the terms under which you agree to repay your loan. You only need to sign one MPN per lender per college.

Pell Grant awards range from $400 - $4731 for the 2008-2009 academic year. Students who posses a bachelor’s degree are not eligible for the Pell Grant.

A PIN or Personal Identification Number is used to sign your FAFSA electronically. Both the student and at least one parent must have PIN numbers in order to fill out the FAFSA on the web. Go to www.pin.ed.gov or apply for the PIN while filling out the FAFSA on the web.

Repayment is the term used to refer to the time period when a borrower is expected to be repaying his or her loan. Repayment for Stafford loans begins after the grace period has ended or after the last date of attendance for a borrower who no longer has a grace period.

All students applying for financial aid must meet the Satisfactory Academic Progress (SAP) for Financial Aid standards listed below:

• You must successfully complete 67% of your attempted credits. Credits attempted but not successfully completed include grades of F, W, I, X, and U. All courses, including developmental and ESL courses are considered in this calculation.

• You must achieve at least a 2.00 cumulative GPA by the end of your fourth semester. All non-developmental courses are considered in this calculation.

• You cannot attempt more than 150% of the credits required for your degree or certificate.

Federal Regulations make no provisions for academic renewal. All courses in a student’s academic history will be reviewed in regards to financial aid eligibility.

SAP will be evaluated each academic year for students pursuing an Associate Degree and each semester for students pursuing a Certificate.

If you do not meet the SAP standards and you feel that you have extenuating circumstances you may appeal for one (1) semester of probationary financial aid.

If your appeal is approved and you then do not meet the terms of your appeal after one semester your financial aid will be cancelled and you must take courses at your own expense until you meet the minimum SAP standards.

If you have attempted 150% of the credits required for your program you will no longer be eligible for financial aid.

For the complete policy for SAP, please click here.

Financial aid awards that do not have to be paid back. Scholarships are given to students who demonstrate or show promise of high achievement in areas such as academics and athletics.

SEOG is a Federal need based grant. Limited funding is available for this program.

Federal loans made available to students through a private lender and guaranteed by another agency. Stafford Loans can be borrowed by students of any age without a co-signer.

Loans on which the federal government pays the interest until the student enters repayment, as well as when the loan has been granted a deferment; during the deferment period the government pays the interest.

TAG awards currently range from $205 - $1134 but are adjusted each academic year. Students must be enrolled for at least six (6) credits, meet the state residency requirements and submit all requested documentation to the New Jersey Higher Education Assistance Authority (HESAA).

Unmet need is the amount of need that remains after all need-based aid has been awarded.

Loans on which the student is responsible for paying the interest from the date of disbursement until the loan is paid in full, regardless of enrollment status.