Glossary

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academic period
A measured term of enrollment.

academic year
A period of time used to measure a quantity of study. For example, our academic year consists of a fall and spring semester.

accreditation
Accreditation is a good indicator of quality, although not every university chooses to be accredited. K-State is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools.

accrued interest
Interest that accumulates on the unpaid principal balance of a loan.

ACT®
A test published to measure a student's ability in math, verbal comprehension, and problem solving. Usually students take this test during their junior or senior year of high school.

adjusted gross income (AGI)
All taxable income less IRS allowable adjustments to income. This figure is from US IRS tax forms.

adobe acrobat
A computer application suite developed by Adobe Corporation that consists of at least two well-known applications: Acrobat and Reader. Acrobat translates files of various formats into a single format, called "portable document format" or PDF. Acrobat Reader is a free, downloadable application that displays PDF files.

advanced placement test
Test used to earn credit for college subjects studied in high school and scored on a scale from 1 to 5 (the best possible score). They are offered by the Educational Testing Service (ETS) in May. Also known as AP tests.

aid package
A combination of financial aid (scholarships, grants, loans, and/or work study funding) determined by the OSFA. See also award notification.

amortization
The process of gradually repaying a loan over an extended period of time through periodic installments of principal and interest.

annual percentage rate (APR)
The total annual cost of a loan, including all fees and interest. Usually expressed as a percentage.

anticipated graduation date (AGD)
The date the lender (or servicer) expects the student to graduate.

aptitude
An aptitude is the readiness to become proficient in a type of activity, given the opportunity and may refer to an individual's capacity or potential to learn one type of work.

ASVAB
Armed Services Vocational Aptitude Battery. It is a test designed to measure aptitude in 10 different career-related skills or activities and at a particular stage—namely individuals between the ages of 16 and 24—in life.

automatic zero EFC
An Expected Family Contribution (EFC) status where, because of low income, a student automatically has a zero EFC. See also Expected Family Contribution (EFC).

average daily balance (ADB)
The sum of unpaid principal balance outstanding on all qualifying loans at each actual interest rate for each day of the quarter, divided by the sum of the number of days in the quarter.

award notification 
An official document issued by the OSFA, listing all the financial aid awarded to the student. The award notification will include information about the terms and conditions for the financial aid. See also aid package.

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BA or BS
BA stands for bachelor of arts, and BS stands for bachelor of science. Both degrees can be earned at K-State.

bankruptcy
A person is declared bankrupt, when found to be legally insolvent and the person's property is distributed among creditors or otherwise administered to satisfy the interests of creditors. Generally, federal student loans cannot be discharged through bankruptcy.

base year
The tax year prior to the academic year (award year) for which financial aid is requested. Financial information from this year is used to determine eligibility for financial aid. For example, if a student is submitting a FAFSA in March 2007 for academic year 2007-08, the base year to be used is 2006.

BIA
Bureau of Indian Affairs.

borrower
The person who applies for a loan and receives the proceeds (or money) of the loan.

budget
The total cost of attending K-State for one academic year. The student's budget usually includes tuition, fees, room, board, books, supplies, travel, and personal expenses. See also cost of attendance.

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campus-based aid
Financial aid programs administered by K-State. The federal government provides the university with a fixed annual allocation which is awarded by financial aid administrators to eligible students. The Perkins Loan Program, Federal Supplemental Educational Opportunity Grant (FSEOG), and Federal Work-Study are examples of campus-based aid.

cancellation
The release of a borrower from the obligation to repay his or her loan. There are three different cancellation periods within the loan life cycle: before disbursement is made, after disbursement is made but before repayment begins, and once repayment begins. Before disbursement is made, the borrower may cancel (or un-apply for) the loan by informing the OSFA that the loan is not wanted. After first disbursement and before repayment, the borrower has the right to return the loan proceeds in full within 120 days (afterwards the borrower owes fees and any accrued interest) and thereby cancel the loan. In this same cancellation period, the borrower may also effect a "partial" cancellation by returning individual (but not all) disbursements. After repayment begins, the borrower must meet certain requirements or conditions to be eligible for discharge from federal student loans. A loan cannot be discharged or cancelled because the borrower didn't complete the program of study at the school (unless the borrower was unable to complete the program because of school closure), didn't like the school or the program of study, or didn't obtain employment after completing the program of study. See also discharge and cancellation options.

cancellation options
The conditions for federal loan cancellation or discharge are based on the loan program. The total and permanent disability or death of a borrower are the only conditions that justify 100% cancellation of a loan in any of the programs. Conditions such as being a full-time teacher (in designated studies or demographic areas), nurse or medical technician, Vista or Peace Corp volunteer, or a member of the US Armed Forces MAY qualify the borrower for 50%-100% discharge on Perkins Loans only. Bankruptcy may be a valid condition for discharge. However, this may only occur if repaying the loans would cause the borrower or his/her family "undue hardship."

capitalization
Addition of unpaid interest to the principal balance of a loan which increases the total outstanding balance due. See also interest capitalization.

certification
A process by which K-State verifies that a student is enrolled on at least a half-time basis, is making satisfactory academic process, and therefore eligible for federal and private loans. Certification must be made prior to disbursement of funds.

citizen/eligible non-citizen
To be eligible for federal student aid, the borrower must be a: 1) US citizen; 2) US national (including natives of American Samoa or Swain's Island); or, 3) US permanent resident (who has an I-151, I-551, or I-551C (Alien Registration Card). If not in one of these categories, the borrower must have an Arrival-Departure Record (I-94) from US Immigration and Naturalization Service showing one of the following designations in order to be eligible: "Refugee," "Asylum Granted," "Indefinite Parole" and/or "Humanitarian Parole," or "Cuban-Haitian Entrant, Status Pending." If the borrower has only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), the borrower is not eligible for federal student aid. If the borrower is in the US on an F1or F2 student visa only, or on a J1 or J2 exchange visitor visa only, or with a G series visa, then the borrower is not eligible for federal student aid.

co-borrower or co-signer
A person who signs the promissory note in addition to the borrower and is responsible for the obligation if the borrower does not pay. A co-borrower must be ble to pass a credit review and must live in the United States.

collection
The activities and/or actions associated with getting payment on unpaid loan principal and interest from a borrower after that borrower defaults on the loan. The players in the loan process that could be taking these actions include lenders, guarantors, servicers, and collection agencies.

collegeanswer.com
An award winning, comprehensive online resource to take the stress and the guesswork out of planning and paying for college. It walks you through the entire “going-to-college” process—from early planning and estimating costs to applying for federal and private loans online.

combined billing
Lenders (or servicers) generally offer a combined bill for all of a borrower's loans serviced by that lender/servicer so that the borrower only needs to make one payment per month for all of the loans.

consolidation
Combining several federal (and possibly private) loans from multiple lenders into a single loan to reduce the monthly payment amount and/or increase the repayment period.

cost of attendance (COA)
The total cost of attending K-State for one academic year. The student's budget usually includes tuition, fees, room, board, supplies, transportation, and personal expenses. See also budget.

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data release number (DRN)
Piece of information on the Student Aid Report (SAR) in the upper right hand corner of the first page (next to the printed EFC). This number is needed to identify the appropriate FAFSA data for release to additional schools (beyond the four schools possibly listed by the student in the original FAFSA submission).

default
Failure to repay a loan according to the terms agreed to when the borrower signed a promissory note for the loan. Default occurs at 180 days when the delinquency date is prior to 10/7/98, and 270 days when the delinquency date is on or after 10/7/98.

deferment
A period during which a borrower, who meets certain criteria, may suspend loan payments. For some loans the federal government pays the interest during a deferment. On others, the interest accrues and is capitalized, and the borrower is responsible for paying it.

delinquency
Failure to make monthly loan payments when due. Delinquency begins with the first missed payment.

demographics
Information pertaining to the vital data for a borrower (e.g., name address, school, birth date, SSN). Also known as demographic information.

dependent student
An undergraduate student who is not married, is under 24 years of age, has no legal dependents, is not an orphan or ward of the court, or not on active duty or a veteran of the U.S. Armed Forces. Parents of a dependent student must submit parental information on the FAFSA for their son or daughter to be considered for financial aid. See also Independent Student.

direct lending
The William D. Ford Federal Direct Loan Program. Direct and PLUS loans are available directly from the federal government rather than through commercial lenders. Once known as FDSLP for Federal Direct Student Loan Program. Also known as FDLP.

disbursement
The release of loan funds to K-State for delivery to the borrower. Disbursements are usually made in equal multiple installments co-payable to the borrower and K-State.

discharge
The release of a borrower from the obligation to repay his or her loan. There are three different cancellation periods within the loan life cycle: before disbursement is made, after disbursement is made but before repayment begins, and once repayment begins. Before disbursement is made, the borrower may cancel (or un-apply for) the loan by telling the lender that the loan is not wanted. After first disbursement and before repayment, the borrower has the right to return the loan proceeds in full within 120 days (afterwards the borrower owes fees and any accrued interest) and thereby cancel the loan. In this same cancellation period, the borrower may also effect a "partial" cancellation by returning individual (but not all) disbursements. After repayment begins, the borrower must meet certain requirements or conditions to be eligible for discharge from federal student loans. A loan cannot be discharged or cancelled because the borrower didn't complete the program of study at the school (unless the borrower was unable to complete the program because of school closure), didn't like the school or the program of study, or didn't obtain employment after completing the program of study. See also cancellation and cancellation options.

disclosure statement
Statement of the total cost and amount of a loan, including the interest rate and any additional finance charges.

due diligence
The federal government requires that a lender, holder, or servicer exercise reasonable care and diligence in the making, servicing, and collection of insured federal student loans in order to retain the insurance (against default claims) of the loans.

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ED
US Department of Education. Government agency that administers several federal student financial aid programs, including the Federal Pell Grant, the Federal Work-Study Program, the Federal Perkins Loan, the FFELP, and the FDLP.

education IRA
An education IRA is a tax-deferred savings and investment account for educational expenses. Parents are allowed to put away $500 a year for each child or grandchild under the age of 18. Like the Roth IRA, contributions aren't tax-deductible, but withdrawals are tax-free. The money must be used for college or graduate school tuition, room, board, or books, by the time the student turns 30. At that point, the funds will be distributed to the beneficiary and will be subject to a 10% penalty and income taxes. Before then, however, the funds can be transferred to a new Education IRA for another family member.

EFC
Expected Family Contribution. Amount a family is expected to contribute to a student's education, based on family earnings, net assets, savings, size of family and number of students in college.

electronic funds transfer (EFT)
Any transfer of funds that is initiated through electronic means, such as data transmission by computer rather than a paper based transaction, such as a check.

eligible non-citizen
Someone who is not a US citizen but is nevertheless eligible for federal student aid. Eligible non-citizens include US permanent residents who are holders of valid green cards, US nationals, holders of form I-94 who have been granted refugee or asylum status, and certain other non-citizens. Non-citizens who hold student visas or exchange visitor visas are not eligible for federal student aid. See also Citizen/Eligible Non-Citizen.

endowment
Funds owned by K-State and invested to produce income to support the operation of the institution.

enrollment status
An indication of whether you are a full-time or part-time student. Generally you must be enrolled at least half-time (and in some cases full-time) to qualify for financial aid.

entitlement
Entitlement programs award funds to all qualified applicants. The Pell Grant is an example of such a program.

entrance counseling
Students with federal educational loans are encouraged to receive counseling before they receive their first loan disbursement, during which the borrower's rights and responsibilities and loan terms and conditions are reviewed with the student. This session is conducted online.

exit counseling
Students with federal educational loans are required to receive counseling before they graduate or withdraw (i.e., leave school), during which the borrower's rights and responsibilities and loan terms and conditions are reviewed with the student. This session may be conducted online, by video, in person with the FAA or FAO, or in group meeting.

expected family contribution
Amount a family is expected to contribute to a student's education, based on family earnings, net assets, savings, size of family and number of students in college. Also known as EFC.

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FAO
Financial Aid Officer. K-State employees who are involved in the administration of financial aid. Also known as Financial Aid Advisors or Administrators.

FDLP
The William D. Ford Federal Direct Loan Program. Direct and PLUS loans are available directly from the federal government rather than through commercial lenders. Once known as FDSLP for Federal Direct Student Loan Program. Also known as Direct Lending.

federal methodology
The need analysis formula mandated by federal law to determine a family's xpected Family Contribution (EFC).

federal processor
The organization that processes the information submitted on the Free Application for Federal Student Aid (FAFSA) and uses it to compute eligibility for federal student aid.

federal student aid information center (FSAIC)
Office associated with the Department of Education that is available to assist students and families on applying for financial aid from the federal government.

federal supplemental educational opportunity grant (FSEOG)
A federal grant for undergraduate students with exceptional financial need.

federal work-study program (FWS)
This federal program provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses.

fellowship
A form of aid given to graduate students to help support their education. Some fellowships include tuition waivers or payments to K-State in lieu of tuition. Most fellowships include a stipend to cover reasonable living expenses (e.g., just above the poverty line). Fellowships are a form of gift aid and do not have to be repaid.

FFELP
The Federal Family Education Loan Program. Direct and PLUS loans are financed by private lenders and guaranteed by the federal government.

financial aid
Financial assistance in the form of scholarships, grants, work-study, and loans for education.

Financial Aid Advisor
Every student at K-State is given a personal Financial Assistance Advisor. These advisors are available to answer any questions students may have regarding financial assistance at K-State.

financial aid award notification or award package 
The total amount of financial aid (federal and nonfederal) such as scholarships, grants, loans, and/or work-study for which a student is eligible. Students should respond within two weeks of notification of their offered financial assistance awards. Students can do this in two ways: Sign into iSIS and then click on “View Financial Aid” to accept or reject your financial assistance awards OR complete, sign, and return the white copy of your financial aid award notification to the OSFA.

financial aid transcript
A record of all federal aid received by students at each school attended. Also known as FAT.

financial need
The difference between the cost of attendance at K-State and the Expected Family Contribution. Also known as financial aid eligibility.

fixed interest
On a fixed interest loan, the interest rate remains the same for the life of the loan.

forbearance
Temporary cessation of regularly scheduled payments or temporarily permitting smaller payments than were originally scheduled.

free application for federal student aid (FAFSA) 
The form that must be completed by students and parents applying for Federal Title IV student aid. Also known as FAFSA.

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general education development certificate (GED) 
A certificate students receive if they've passed a specific, approved high school equivalency test. Students who don't have a high school diploma but who have a GED may still qualify for federal student aid.

gift aid
Financial aid, such as grants and scholarships, which does not need to be repaid.

Graduate PLUS Loans 
Federally-insured loans for graduate students.

grace period
Specified period of time between the date a student graduates or drops below half-time status and the date loan repayment begins. There is only one grace period per federal student loan.

grade point average (GPA) 
An average of a student's grades, where the grades have been converted to a 4.0 scale—with 4.0 being an A, 3.0 being a B, and 2.0 being a C. Also know as GPA.

graduate student
A student enrolled in a master's or higher level degree program.

graduated repayment
A repayment schedule where the monthly payments are smaller at the start of the repayment period and become larger later on.

grants
Financial aid awards that do not have to be repaid. Grants are available through the federal government, state agencies and K-State.

gross income
Income before taxes, deductions, and allowances have been subtracted.

guarantor
State agency or private non-profit institution that insures student loans for lenders and helps administer the FFELP. See also guaranty agency.

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half-time
K-State measures academic progress by credit hours per semesters. Therefore half-time enrollment is at least six credit hours per semester for the fall and spring semesters. For the summer semester, undergraduate students must be enrolled in at least 5 credit hours, graduate students must be enrolled in at least 3 credit hours, and Veterinary Medicine students must be enrolled in at least 6 credit hours to be eligible for financial aid. Some programs such as the Federal Direct loan program require that a student be enrolled at K-State at least half-time.

HOPE Scholarship
The HOPE Scholarship provides a family up to a $1,500 maximum tax credit per year per dependent student.

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in-school
The status of a borrower which is defined as beginning on the date on which the borrower is degree-seeking and is enrolled on at least a half-time basis and continuing until the borrower terminates enrollment on at least a half-time basis at K-State.

income
The amount of money received from employment (salary, wages, tips), profit from financial instruments (interest, dividends, capital gains), or other sources (welfare, disability, child support, Social Security, and pensions).

independent student
A student who is either married, 24 years of age or older, enrolled in a graduate or professional education program, has legal dependents other than a spouse, is an orphan or ward of the court, on active duty or a veteran of the U.S. Armed Forces.

information review form
A document associated with the paper version of the Student Aid Report (SAR) on which the borrower can correct any incorrect information on the SAR. Document is returned to the Department of Education.

Institutional Student Information Record (ISIR) 
The Department of Education forwards information electronically about a student who has applied for federal student aid via the FAFSA to the schools indicated by the student on that application. Also known as ISIR.

interest
An amount, calculated as a percent of the principal loan amount, that is charged for borrowed money. See fixed interest and variable interest.

interest subsidy
Interest the federal government pays on certain loans while borrowers are in school, during authorized deferment, or during grace periods.

international student
A student who is not a citizen or resident of the US who intends to attend or is attending a college, university, or other postsecondary educational institution.

internship
Part-time job during the academic year or the summer months in which a student receives supervised practical training in a field.

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lender
A financial institution, agency, or school that provides the money to make a loan to a borrower.

leveraging educational assistance partnership program
Also known as the LEAP Program. Program was formerly known as the State tudent Incentive Grant (SSIG) Program. This program, through matching formula grants to states, provides grant aid to students with substantial financial need to help them pay for their postsecondary education costs. The Secretary of Education is authorized to accept annual applications from the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the Virgin Islands for distribution of the LEAP funds.

lifetime learning tax credit
A tax credit of up to $2,000 per family, for postsecondary education courses. Only one credit may be claimed per tax year. To claim this credit, the individual (or in the case f a dependent child, the parents) must file a tax credit and owe taxes for that tax year.

loan
A type of financial aid that is available to students and their parents. Student loan programs have varying interest rates and repayment provisions. An education loan must be repaid.

loan proceeds
The money the borrower receives from a loan (or the amount borrowed minus fees).

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master promissory note (MPN)
The promissory note a student signs when taking out a Direct Loan. The Master Promissory Note is good for up to 10 years and covers both the Subsidized and Unsubsidized Direct loans the student may receive for the same enrollment period. If the student is attending K-State, the Master Promissory Note also covers Subsidized and Unsubsidized Direct loans the student may receive for future enrollment periods. If a student changes lenders, they must complete a new Master Promissory Note with that lender.

merit-based
A means of determining eligibility for certain types of financial aid using merit, such as a specific accomplishment or talent, as the determining factor, rather than financial need.

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national student loan clearinghouse
Acts as a central repository for the collection of postsecondary enrollment status and related information. Its primary responsibility is to assist postsecondary institutions to meet their reporting responsibilities to student loan industry participants and the federal government.

need
The difference between the Cost of Attendance and the Expected Family Contribution (EFC) is the student's financial need.

need analysis
Technique used to determine a student's need for financial assistance for college expenses. The analysis determines the family's ability to contribute to costs compared to the student's cost of attendance.

need-based
A means of determining eligibility for certain types of financial aid using financial need as the determining factor.

net income
This is income after taxes, deductions, and allowances have been subtracted.

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origination
The process whereby the lender, or a servicing agent on behalf of the lender, handles the initial application processing and disbursement of loan proceeds.

origination fee
Fee, payable by the borrower and deducted from the principal of a loan prior to disbursement to the borrower. For federally-backed loans, the origination fee is paid to the federal government to offset the cost of the interest subsidy to borrowers. For private loan programs, the origination fee is generally paid to the originator to cover the cost of administering and insuring the program. K-State students do not pay an origination fee.

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parent PLUS loans
Federally-insured loans for parents of dependent students. Also known as PLUS loans.

parent's contribution
Amount parents can be expected to contribute each year to the cost of their student's education as determined by the Federal Methodology. Also known as PC.

pell grant program
The largest federal grant program. Eligibility and award amounts are determined by the college based on established federal guidelines.

period of enrollment
The period for which aid is made as determined by K-State. A period of enrollment coincides with an academic term such as the academic year or semester and starts on the day classes begin.

perkins loan program
Federally-insured loans funded by the federal government and awarded by the school. The loans feature a low interest rate and are repayable over an extended period.

personal identification number (PIN)
A number entered into computer and/or telephone systems to authenticate the user. PINs are frequently used to identify those who are taking online entrance and exit counseling.

postsecondary
This term means "after high school" and refers to all programs for high school graduates, including programs at two and four-year colleges, and vocational and technical schools.

principal
Amount borrowed, which may increase as a result of interest capitalization, and the amount on which interest is calculated. Also known as principal balance.

private loans
Private loans provide supplemental funding when other financial aid does not cover costs. These loans (not sponsored by government agencies) are offered by banks or other financial institutions and schools to parents and students.

professional judgment
The financial aid administrator's ability to make changes to a student's financial aid package based on extenuating circumstances.

promissory note
Contract between a borrower and a lender that includes all the terms and conditions under which the borrower promises to repay the loan.

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reference
An individual to whom inquiries may be made regarding another person's character, ability, or whereabouts. A lender generally will ask a borrower to provide the names, phone numbers, and addresses of at least three individuals to be used as references for the borrower. In the event that the lender loses track of the borrower's whereabouts, the lender will contact these individuals to try to find the borrower.

renewal application
A FAFSA application that is used for subsequent-year applications after the initial FAFSA has been filed.

repayment
The time during which a borrower actively pays back an education loan.

reserve officers training corps (ROTC)
Programs that combine military education with baccalaureate degree study, often with financial support and required commitment to future service in the Armed Services. Scholarship recipients participate in summer training while in college and meet a service commitment after college. Also known as ROTC.

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SAT or SAT reasoning test 
(Formerly SAT I) Used to measure a student's ability in math, verbal comprehension, and problem solving. SATs are administered during the junior and senior years in high school.

SAT subject tests 
(Formerly SAT II) Offered in many areas of study including English, mathematics, many sciences, history, and foreign languages.

satisfactory academic progress (SAP)
To be eligible to receive federal student aid, a student must maintain satisfactory academic progress, based on K-State's written standard, toward a degree or certificate. Students must have a C average for their GPA by the end of the second academic year of study or have an academic standing consistent with K-State's graduation requirements, and must continue to maintain satisfactory academic progress for the rest of the course of study.

scholarships
Funds used to pay for higher education that do not have to be repaid. Scholarships may be awarded based on any number of criteria, such as academics, achievements, hobbies, talents, affiliations with various groups, or career aspirations. They usually do not provide funds for living expenses.

secondary market
Institutions that buy student loans from the institutions that originate or own them.

section 529 Plans
State tuition savings plans, named for the section of the IRS code authorizing their existence.

selective service
Registration for the military draft. If required by law, you must register, or arrange to register, with the Selective Service to receive federal student aid. The requirement to register applies to males who were born on or after January 1, 1960, are at least 18 years old, are citizens or eligible noncitizens, and are not currently on active duty in the US Armed Forces. (Citizens of the Federated States of Micronesia, the Marshall Islands, or Palau are exempt from registering.)

self-help aid
Financial aid in the form of loans or student employment.

SEOG
Supplemental Educational Opportunity Grant Program; federal grant funds made available through some schools to a limited number of undergraduate students with financial need.

servicer
Organization that administers and collects loan payments. May be either the loan holder or an agent acting on behalf of the holder.

SSN
Social Security (account) Number. Unique nine-digit number assigned to individuals that identifies location of birth (or registration), becomes the key to contributing and receiving Social Security funds for retirement, and is used by the IRS in associating income with an individual for the purpose of assessing taxes.

Direct loans
Loans, both subsidized (need based) and unsubsidized (non-need based), guaranteed by the federal government and available to students to fund education.

standard repayment
A repayment schedule reflecting equal monthly payments over a 10 to 15 year period.

student aid report (SAR)
A federal output document, containing financial and other information reported by the student on the FAFSA, sent to a student by the federal application processor. The student's eligibility for aid is indicated by the Expected Family Contribution (EFC), which is printed on the document.

subsidized Direct loans
Subsidized Direct loans are awarded to students who demonstrate financial need (i.e., need-based loans). Because the Department of Education subsidizes the interest, borrowers are not charged interest while they are enrolled in school at least half-time and during grace and deferment periods.

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tax credit
An amount subtracted from your federal income taxes dollar-for-dollar. A tax credit will save the taxpayer more than a deduction. Taxes must be owed for the given tax year and a tax return must be filed to receive any tax credit.

term
A length of time in which to repay a loan. The term is usually agreed to by lender and borrower within the borrower's contract or promissory note. Also refers to language used in legal documents, such as the promissory note, that defines how a loan will be borrowed and repaid.

transcript
A list of all the courses that a student has taken at a particular high school or college with the grades that the student earned in each course. Transcripts are required for K-State applications.

tuition
The amount of money charged for classroom and other instruction, and use of some facilities such as libraries.

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unsubsidized Direct loans
Unsubsidized Direct loans are available to students regardless of financial need (i.e., non-need based). Borrowers are responsible to pay the interest that accrues during any period.

U.S. department of education
Government agency that administers several federal student financial aid programs, including the Federal Pell Grant, the Federal Work-Study Program, the Federal Perkins Loan, the FFELP, and the FDLP. Also known as ED.

U.S. department of health and human services (DHHS, HHS)
Government agency that administers several federal health education loan programs, including the HEAL, HPSL, and NSL loan programs.

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variable interest
With a variable interest loan, the interest rate changes periodically. For example, the interest rate might be pegged to the cost of US Treasury Bills (e.g., T-Bill rate plus 1.7%) and be updated monthly, quarterly, semi-annually, or annually.

verification
A process used to make sure that the information students report on their FAFSA is accurate. Verification prevents ineligible students from receiving aid by reporting false information and ensures that eligible students receive all of the aid for which they are qualified.

verification form
A form sent by K-State to students who are selected for verification by the Department of Education's Central Processing System.

veteran
For federal financial aid purposes, such as determining dependency status, a veteran is a former member of the US Armed Forces who served on active duty and was discharged other than dishonorably.

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W2
A form listing an employee's wages and taxes withheld. Employers are required by the IRS to issue a W2 for each employee before February 2.

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