Common Financial Aid Terms

Budget - The total cost of attending school for one academic year, including tuition, books, supplies and living expenses. The Office of Financial Aid calculates standard budgets for all students yearly.

Campus Based Aid - Grant, loan and work based aid available to students meeting the preference deadline with the highest financial need.

Deferment of Loans - An approved postponement of loan repayment for a specific period.

Electronic Fund Transfer (EFT) - A payment from a loan program directly to your tuition and fee account.

Entrance Counseling - A session you must attend to learn about your rights and responsibilities as a borrower before your first Federal Family Education Loan can be disbursed to you. Entrance counseling is required by federal regulation.

Expected Family Contribution (EFC) - The amount you and your family will be expected to contribute toward your educational expenses (budget), as determined by the formula set by the federal government.

Free Application for Federal Student Aid (FAFSA) - The form you must fill out so we can determine your family's expected financial contribution to the cost of your education. The form is available online at www.fafsa.ed.gov.

Fees - The college's charges for instruction (tuition) or general costs that are billed directly to the student on a quarterly basis. Fees must be paid in full for you to be considered enrolled and to receive grades for the quarter.

Financial Aid - All forms of financial assistance available to meet the cost of attendance, including scholarships, grants (gift programs), work programs and loans (self-help programs).

Financial Need - The difference between the cost of education (student budget) and the amount you and your family could reasonably be expected to contribute to these expenses [expected family contribution (EFC)].

Gift Aid - Funds awarded to students to help with college costs with no obligation for repayment on the part of the student. Few financial aid packages are composed entirely of gift aid. Most financial aid packages include some self-help assistance.

Grant - A non-repayable award made on the basis of financial need.

Independent Student - For financial aid purposes, you are considered dependent unless: 1) you are 24 years of age by January 1 of the award year; 2) you are married; 3) you are a graduate or professional student; 4) you have a legal dependent other than a spouse; 5) you are an orphan or ward of the court; 6) you are currently serving on active duty in the U.S. Armed Forces for purposes other than training; 7) you are a veteran of the U.S. Armed Forces.

Package - The total combination of scholarships, grants, work, and loans awarded to a student to meet the cost of attendance.

Promissory Note - The binding legal document you sign when you apply for a student loan. It lists the terms under which you are borrowing and the repayment terms to which you are agreeing, including information about interest rate, deferment, and cancellation provisions. You should read and keep this document for your records.

Scholarship - Gift aid awarded to a student for superior academic performance or talent.

Self-help Programs - Programs that allow a student to earn funds (Federal Work-Study Program) or to borrow funds (loan program) to help with college costs.

Verification - The process by which COTC confirms the accuracy of information supplied on the FAFSA as required by federal regulation. If you are selected, you and your parents (or spouse) will need to supply additional information and copies of documents, usually including but not limited to tax returns and W2s/1099s.
 

[top]

[Back to Financial Aid homepage]