Financial Aid at CGTC

An item of value, such as a family’s home, business, and farm equity, real estate, stocks, bonds, mutual funds, cash, certificates of deposit (CDs), bank accounts, trust funds and other property and investments.

Award Letter

The official document issued by the Financial Aid Office which lists possible financial aid awarded to the student. The award letter will include the terms and conditions for the financial aid and information about the cost of attendance.

Award Year/Financial Aid Year

The academic year for which financial aid is requested or received. Year is from July to June - includes Summer, Fall, Winter, & Spring Quarter.

Cost of Attendance (COA)

(Also known as the cost of education or budget) The total amount it should cost the student to go to school, including tuition and fees, allowances for books and supplies, transportation and personal and incidental expenses.

Default

A loan is in default when the borrower fails to pay several regular installments on time (i.e., payments overdue by 180 days) or otherwise fails to meet the terms and conditions of the loan. If you default on a loan, the university, the holder of the loan, the state government and the federal government can take legal action to recover the money, including garnishing your wages and withholding income tax refunds. Defaulting on a government loan will make you ineligible for future federal financial aid, unless a satisfactory repayment schedule is arranged, and can affect your credit rating.

Deferment

Occurs when a borrower is allowed to postpone repaying a loan. If you have a subsidized loan, the federal government pays the interest charges during the deferment period. Most federal loan programs allow students to defer their loans while they are in school at least half-time. If you don't qualify for a deferment, you may be able to get a forbearance. You cannot get a deferment if your loan is in default.

Delinquent

If the borrower fails to make loan payments on time or a payment is not received by the due date, the borrower is considered delinquent and late fees may be charged. Delinquencies greater than 30 days are generally reported to national credit bureaus. If the borrower misses several payments, the loan goes into default.

Dependency Status

Determines to what degree a student has access to parent financial resources.

Dependent

For a child or other person to be considered your dependent you must provide more than half of their support. Spouses do not count as dependents in the Federal Methodology.

Eligible Non-Citizen

A permanent resident of the United States who is able to present evidence from the Immigration and Naturalization Service that he or she is in the United States for other than temporary purposes with the intention of becoming a citizen or permanent resident.

Expected Family Contributions (EFC)

The amount of money that the family is expected to be able to contribute to the student's education, as determined by the Federal Methodology need analysis formula approved by Congress. The EFC includes the parent contribution and the student contribution and depends on the student's dependency status, family size, number of family members in school, taxable and nontaxable income and assets.

Federal Methodology

The need analysis formula used to determine the EFC. The Federal Methodology takes family size, the number of family members in college, taxable and nontaxable income and assets into account.

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 Work-Study (FWS)

Part of the federal Student Financial Assistance Program that provides part-time employment for post-secondary students who need income to help meet educational cost.

Financial Aid

Money provided to the student and the family to help them pay for the student's education.

Financial Aid Director

The college employee who oversees all operations of the Financial Aid Office.

Financial Aid Office (FAO)

The college office that is responsible for the determination of financial need and the awarding of financial aid.

Financial Aid Officer

A college employee who is involved in the administration of financial aid. Some schools call FAAs "Financial Aid Advisors" or "Financial Aid Counselors".

Financial Need

The difference between the COA and the EFC is the student's financial need - the gap between the cost of attending the school and the student's resources. The process of determining a student's need is known as need analysis. Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need

Forbearance

During a forbearance the lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. You can't receive a forbearance if your loan is in default.

Free Application for Federal Student Aid (FAFSA)

The FAFSA is a standard federal form used to determine your eligibility for most types of financial aid. It requires income, asset, and tax information from the students and/or parents.

Grade Point Average (GPA)

An average of a student's grades, converted to a 4.0 scale (4.0 is an A, 3.0 is a B, and 2.0 is a C).

Grant

A type of financial aid based on financial need that the student does not have to repay.

Gross Income

Income before taxes and deductions.

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

An independent student is at least 24 years old as of January 1 of the academic year, is married, has a legal dependent other than a spouse, is a veteran of the U.S. Armed Forces, or is an orphan or ward of the court (or was a ward of the court until age 18). A parent refusing to provide support for their child's education is not sufficient for the child to be declared independent.

In-State Student

A student who has met the legal residency requirements for the state (Georgia), and eligible for in-state tuition.

Institutional Student Information Report (ISIR)

The electronic version of SARs delivered to schools.

Internal Revenue Service (IRS)

Federal agency responsible for enforcing U.S. tax laws and collecting taxes.

Loan

A sum of money borrowed (principal) usually for a specific reason. The entity lending the money usually charges interest for use of the money. The amount of money borrowed is typically repaid with interest over a period of time.

Need Analysis

The process of determining a student's financial need by analyzing the financial information provided by the student and his or her parents (and spouse, if any) on a financial aid form.

Need-Based

Financial aid that is need-based depends on your financial situation. Most government resources of financial aid are need based.

Net Income

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

Out of State Student

A student who has not met the legal residency requirements for the state, and is charged double the tuition rate. See Admissions Office for more information.

Parent Contribution (PC)

An estimate of the portion of your education expenses that the federal government believes your parents can afford. It is based on their income, the number of parents earning income, assets, family size, the number of family members currently attending a university and other relevant factors. Students who qualify as independent are not expected to have a parent contribution.

Pell Grant

One of the largest sources of grants, Pell Grants are administrated by the federal government and the college awards based on federal regulations. Pell is designed to help students with their financial need related to their college costs.

Principal

The dollar amount of the loan you owe, excluding accrued by unpaid interest.

Principal Balance

The outstanding amount you owe, excluding accrued but unpaid interest.

Repayment Period

This is the amount of time during which the money borrowed plus interest are repaid.

Satisfactory Academic Progress (SAP)

A student must make this in order to continue receiving federal aid.

Scholarships

Scholarships, like grants, are a form of financial aid that do not have to be repaid. These are available from many sources including community groups, school and private corporation. Scholarships can be awarded based on a variety of criteria including scholastic achievement, hobbies and college majors.

Selective Service

Registration for the military draft. Male students who are U.S. citizens and have reached the age of 18 and were born after December 31, 1959 must be registered with Selective Service to be eligible for federal financial aid. If the student did not register and is past the age of doing so (18-25), the student is ineligible for all federal student financial aid programs.

Student Aid Report (SAR)

A report sent to a student by the government 4 to 6 weeks after submitting a FAFSA. The report informs the student of the Expected Family Contribution (EFC) and the financial aid for which the student is eligible. The report is used by the Financial Aid Office to determine available financial aid for the student.

Student Contribution (SC)

The amount of money the federal government expects the student to contribute to his or her education and is included as part of the EFC. The SC depends on the student's income and assets, but can vary from school to school.

Supplemental Educational Opportunity Grants (SEOG)

Government grants distributed by colleges, at their discretion, to students based on need.

Title IV School Code

When you fill out the FAFSA you will need to supply the Title IV Code for each school to which you are applying. This code is a six-character identifier.

U.S. Department of Education (DOE)

Government agency that administers several federal student financial aid programs, including the Federal Pell Grant and Federal Work-Study Program.

Verification

Verification is a review process in which the FAO determines the accuracy of the information provided on the student's financial aid application. During the verification process the student and parent will be required to submit documentation for the amounts listed (or not listed) on the financial aid application. Such documentation may include signed copies of the most recent Federal and State income tax returns for you, your spouse (if any) and your parents (if dependent), among other documents as requested by the financial aid office.

W2 Form

The form listing an employee's wages and tax withheld. Normally given to employee by end of January each year.

If you have questions or need more information,
email finaid@centralgatech.edu