glossary of financial aid terms
Borrower Benefit
Program offered by lenders to help reduce the cost of borrowing. Check out VSAC’s borrower benefits.
Campus-based Programs
Federal student aid programs, including Federal Perkins Loans, Federal Supplemental Educational Opportunity Grants, and Federal Work-Study, administered by colleges.
Enrollment Status
Determined by the number of credit hours for which you register. In most cases, 12 credit hours or more is considered full time; between nine and 11 credits is three-quarter-time; between six and eight credits is half-time; and fewer than six credits is quarter-time.
Expected Family Contribution (EFC)
The results of a federal formula using the family's income and assets to determine the expected contribution towards educational expenses. The EFC is reported on the Student Aid Report.
Federal Direct Student Loan Program (FDSLP)
Low-interest loans for students and parents; includes the Federal Stafford and PLUS loan programs. Loans are obtained through a student's school and repaid to the federal government.
Federal Family Education Loan Programs (FFELP)
Low-interest loans for students and parents; includes the Federal Stafford and PLUS loan programs. Loans are obtained from a private lender such as VSAC. Loans through VSAC receive borrower benefits.
Federal Pell Grant
The largest pool of federal grant money. You must apply for a Federal Pell Grant, using the Free Application for Federal Student Aid (FAFSA), to be considered for other forms of aid.
Financial Aid Award Notifications
Letters from the colleges to which you have applied for financial aid informing you of your eligibility
Free Application for Federal Student Aid (FAFSA)
The document you use to apply for federal, state, and institutional financial aid. All students must complete this application to be considered for aid.
National Community Service
Community service program enabling eligible students to work in exchange for a portion of their loans being forgiven or a portion of their higher education or training being financed. For more information, call 800-94A-CORP or visit the Corporation for National Service Web site.
Requests for Additional Information
Additional information, or verification of information reported on the FAFSA or other documents, that VSAC or the colleges may request.
Scholarships
Gifts of money to students from state, federal, or private sources. While state and federal grant programs are based on financial need, scholarships may be based on a variety of factors, including need, academic excellence, leadership qualities, heritage, or extracurricular interests.
Special Circumstances
Extenuating family circumstances that were not addressed on your FAFSA, but which you would like VSAC and the colleges to consider in determining your eligibility for aid. A letter of explanation, detailing events, expenses, etc., that warrant special attention, should be sent to each office reviewing your application(s) for aid.
Student Aid Report (SAR)
The official Federal Pell Grant notification you receive after your FAFSA is processed.
Vermont Grant Application
The form you use to apply to VSAC for a Vermont state grant. Applications are processed on a first-come, first-served basis.
Vermont Non-Degree Grants
Grants awarded to students enrolled in a non-degree program, either as an introduction to higher education or to improve employability.
Vermont Summer Employment Program
A VSAC program matching financially needy students with jobs for nonprofit employers throughout the state. Applications are available in high school guidance offices after March 1.
VSAC Award Letter
A letter informing you of your eligibility for a Vermont state grant
loan repayment terms
Consolidation
You combine your eligible loans and lower your monthly payment by extending repayment up to 30 years. You may consolidate your Federal Direct Loans with VSAC.
Deferment
Your payments are postponed when you meet specific eligibility requirements.
Forbearance
Your payments are postponed for a short time during financial difficulty.
Graduated Repayment
Your payment starts low and increases over time.
Income-Sensitive Repayment
Your payment amount is based on your income and the amount you owe.
Level Repayment
You pay the same amount each month throughout repayment.
Reduced Payment Plan
Your payments are significantly lower during temporary financial difficulty.
