Glossary of Terms

Money from grants, scholarships, benefits, or loans used to pay the cost of college.

A loan from a source other than the federal government.

The estimated total cost for an individual student to attend college (also referred to as the cost of attendance for one year or term). The budget includes billable expenses (such as tuition and fees) as well as some non-billed costs which a student may incur.

The sum of all the estimated costs to attend college (sometimes also called a student budget). The cost of attendance includes billable expenses (such as tuition and fees) as well as some non-billed costs like food, housing, personal, books, and transportation.

Allows students to access the IRS tax return information needed to complete the Free Application for Federal Student Aid (FAFSA) and transfer the data directly into their FAFSA from the IRS website.

The release of loan funds to the school for delivery to the borrower. The payment will be made co-payable to the student and the school. Loan funds are first credited to the student’s account for payment of tuition and fees. Any excess funds are then paid to the student via direct deposit or paper check. Unless the loan amount is under $500 or the college has a low default rate, the disbursement will be made in at least two equal installments.

Provides the borrower with information about the actual cost of the loan, including the interest rate, origination, insurance, loan fees, and any other types of finance charges. Lenders are required to provide the borrower with a disclosure statement before issuing a loan.

Students with educational loans are required to complete entrance counseling which will provide the student with their rights and responsibilities as a student loan borrower. Entrance loan counseling is required prior to the first loan disbursement. Exit Counseling is required before a student loan borrower graduates, drops below half-time enrollment or otherwise ceases half-time enrollment. Repayment terms will be provided to the student borrower in exit counseling.

The amount a family is expected to contribute toward the cost of attending the University of Miami. The contribution is determined using the information submitted on the financial aid application(s) and from submitted tax and wage statements.

The free application for financial assistance from the federal government.

A federal loan available to graduate students based on credit criteria.

A loan for which the government does not pay the interest. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed, even while the student is still in school. Students may avoid paying the interest while they are in school by capitalizing the interest, which increases the loan amount. Unsubsidized loans are not based on financial need and may be used to finance the family contribution.

A lender is said to originate or make a loan when the loan is disbursed to or on behalf of the borrower.

Fee paid to the bank to compensate it for the cost of administering the loan. The origination fees are charged as the loan is disbursed and are typically from 0 to 3 percent of the amount disbursed. A portion of this fee is paid to the federal government to offset the administrative costs of the loan.

A scholarship that comes from sources other than the school and the federal or state government.

A financial aid award made to a student in excess of their demonstrated financial need. A student may not receive a total financial aid award package in excess of the total cost of attendance.

The delegation of authority from the federal government to the financial aid administrator (FAA). For need-based federal, state, and institutional aid programs, the federal government may delegate authority to the FAA who can adjust the EFC, adjust the COA, or change the dependency status (with documentation) when extenuating circumstances exist. For example, if a parent becomes unemployed, disabled, or deceased, the FAA can decide to use estimated income information for the award year instead of the actual income figures from the base year.

All Online students receiving financial aid must continue to maintain certain standards of academic progress to continue receiving the aid. Online students receiving aid through federal sources must maintain at least a 3.0 minimum cumulative GPA and earn at least 67% of attempted credits. Specific information is available on the Satisfactory Academic Progress (SAP) requirements page.

Financial aid that does not have to be repaid. Scholarships may be need-based, talent-based or award for a student’s academic achievement. Criteria for scholarship eligibility varies widely, and students should check with the organization issuing a scholarship to determine if certain criteria must be met in order to maintain eligibility.

The process the federal government uses to confirm that the data reported on your FAFSA is accurate. If you are selected for verification, UM is required to collect additional documentation from you and complete the verification review prior to disbursing any funds to your student account.