Glossary

Below is a glossary of terms used frequently in financial aid.  If the definition of any term remains unclear after reading this, please contact the Student Financial Aid Office for further clarification.

Budget/Cost of Attendance
Estimated total amount it should cost a student to attend school for one year.  This figure includes estimates for the tuition and mandatory fees Student Accounting Office as well as estimates for living expenses, transportation, books and supplies and other expenses.

Federal Stafford Loan
Loan funded by private lenders but guaranteed by the federal government.  Available to students enrolled at least half time in a degree seeking program.  There are two types of Federal Stafford Loans - Subsidized and Unsubsidized.  The Subsidized Loan does not accrue interest while a student is in school and during the six month grace period before repayment begins.  The Unsubsidized Loan does accrue interest during these times.  The interest rate of a Federal Stafford Loan is fixed at 6.8%.

Federal Direct Loan
Loan funded by the U.S. Department of Education.  There are two types of Federal Direct Loans - Subsidized and Unsubsidized.  The Subsidized Loan does not accrue interest while a student is in school and during the six month grace period before repayment.  The Unsubsidized Loan does accrue interest during these times.  The interest rate of a Federal Stafford loan is fixed at 6.8%.

Perkins Loan
This loan has a fixed interest rate of 5%.  The Perkins Loan is subsidized, meaning that it does not accrue interest while a student is in school and during the 9 month grace period before repayment.

Health Professions Loan (HPLN)

This loan has a fixed interest rate of 5%.  The HPLN Loan is subsidized, meaning that it does not accrue interest while a student is in school and during the 12 month grace period before repayment.

Nursing Loan (NULN)

This loan has a fixed interest rate of 5%.  The Nursing Loan is subsidized, meaning that it does not accrue interest while a student is in school and during the 9 month grace period before repayment.

Private/Alternative Loan
See our Guide to Private/Alternative Loans.

Unmet Need
Gap between the amount of aid awarded by UMB and a student's estimated cost of attendance/budget.

Expected Family Contribution (EFC)
The amount of money the family/student is expected to contribute toward his/her own education.  It is determined by the Federal Methodology need analysis formula approved by Congress and is based on information supplied by the student on his/her FAFSA.  It determines the student's eligibility for need based financial aid.

Award Package
Tells each student the amount and source of aid offered to him/her.  Available on SimsWeb.

Disbursement
The release of loan funds from the lender to the student's account at the school.  Funds are first applied to the student's bill for tuition and fees and any remaining amount is then processed by Student Accounting Office.