Financial Aid Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
AB 130
A California law that allows public colleges to provide state-funded scholarships to undocumented students who meet AB 540 criteria.
AB 131
A California law that expands the California Dream Act to allow undocumented students to apply for state financial aid, including Cal Grants.
Ability to Benefit (ATB)
A provision that allows students without a high school diploma or GED to qualify for federal financial aid if they meet certain criteria, such as passing an approved test or completing a specific number of credits.
Academic Year
The period of time, usually from fall to spring, that is used to calculate a student’s eligibility for financial aid.
Account Transcript
A document that shows basic tax return data, including adjustments made after the original filing (such as payments, penalties, or additional taxes owed). It reflects any activity or changes to the taxpayer’s account with the IRS.
Add or Drop No-Grade-of-Record (NGR)
A period during which students can add or drop courses without it being recorded on their transcripts.
AmeriCorps
A national service program that provides educational awards and stipends to participants who complete a term of service in communities across the United States.
Award Letter
The financial aid letter from a college outlining the types and amounts of aid a student is eligible to receive.
B
BankMobile Refund Preference
A method by which students can choose how they wish to receive financial aid refunds, typically via direct deposit or Bank Mobile Vibe Checking Account.
BankMobile Vibe
A digital banking platform used by many colleges, to distribute financial aid refunds and manage student accounts. It provides students with access to checking accounts, debit cards, and financial management tools. Students can receive their financial aid disbursements directly to their BankMobile account for quick and convenient access to funds.
C
Cal Grant
A need-based California state grant awarded to students who meet GPA and financial eligibility requirements.
California Chafee Grant
A grant for foster youth to help pay for college or vocational training.
California College Promise Program (CCPG)
Is a state-funded program that waives tuition fees for California residents or AB540 eligible students who meet specific income criteria. It’s available to students at all California community colleges and is based on financial need. Eligible students can have their enrollment fees waived for as long as they meet the requirements, including completing a FAFSA or California Dream Act Application (CADAA).
California Dream Act Service Incentive Grant (DSIG)
A grant program for eligible AB 540 students who qualify for a Cal Grant B under the California Dream Act Application (CADAA). The program provides financial assistance to students who participate in volunteer or community service, helping to reduce their college expenses.
California Student Aid Commission (CSAC)
The state agency responsible for administering California's financial aid programs, including Cal Grants, Middle Class Scholarships, CADAA and DSIG, among others.
Campus Discrepancy
When there is a mismatch in information between a student’s financial aid application and the college’s records.
Chabot College Promise Free Tuition
Is program is designed specifically for first-time, full-time students attending Chabot College. Unlike CCPG, this program is not income-based and covers tuition costs for up to two years.
Citizen
An individual who is recognized by a country as a legal member and is eligible for federal financial aid in the U.S.
Consortium Agreement
It is an arrangement between two or more colleges that allows a student to receive financial aid for courses taken at more than one institution. If a student is enrolled in classes at Chabot College (the home school) and another institution (the host school) at the same time, they may combine their enrollment to qualify for financial aid through their home school.
Contributor
A person who is required to provide information on a student's financial aid application. This typically includes the student, their parents (for dependent students), and, if applicable, the student's spouse. The contributor's information is used to determine eligibility for financial aid.
Corrections
Changes or updates that can be made to a student’s FAFSA or CA Dream Act form after submission to correct mistakes or update information.
D
Deferment
A postponement of loan payments under certain conditions, such as when a borrower is enrolled in school at least half-time.
Department of Education (DOE)
The federal agency responsible for managing federal financial aid programs.
Direct Subsidized Loan
A federal student loan where the U.S. government pays the interest while the student is in school.
Direct Unsubsidized Loan
A federal student loan where the borrower is responsible for paying interest while in school.
Disbursement Date
The date when financial aid funds are released to a student’s account to cover tuition, fees, and other education-related expenses.
E
EFC (Expected Family Contribution)
The amount a family is expected to contribute toward a student’s education, based on the financial aid application. Starting with the 2024-2025 year, the SAI will replace the EFC.
Eligible Non-citizen
A non-citizen who meets specific criteria, such as having a U.S. permanent resident card, making them eligible for federal financial aid.
Entrance Counseling
Required for first-time borrowers of federal student loans to ensure they understand loan terms and responsibilities.
Exit Counseling
A mandatory process for federal student loan borrowers when they graduate, leave school, or drop below half-time enrollment, providing them with repayment information.
Excessive Unit Appeal
A process for students who have exceeded their allowable unit limit but wish to continue receiving financial aid.
F
FAFSA (Free Application for Federal Student Aid)
The application used to determine a student’s eligibility for federal, state, and institutional financial aid.
FAFSA Partner Portal (FPP)
It is an online platform used primarily by financial aid professionals to manage and process FAFSA applications. It provides access to tools and resources that aid in reviewing, verifying, and updating student financial aid information.
FAFSA Processing System (FPS)
It is the system that processes FAFSA applications. It manages the data submitted by students, calculates eligibilty, and communicates with schools and financial aid offices to ensure that aid packages are properly awarded and disbursed.
FAFSA Submission Summary (FSS)
The summary page generated after a student submits their FAFSA, detailing the information provided.
Federal Aid
Financial aid provided by the federal government, such as Pell Grants, federal student loans, and work-study.
Federal Direct Loan
Loans offered by the U.S. Department of Education, which include subsidized and unsubsidized loans.
Federal Supplemental Educational Opportunity Grant (FSEOG)
A federal grant for students with exceptional financial need, awarded by colleges.
Federal Tax Information (FTI)
Sensitive data sourced from federal tax returns, used to assess a student's eligibility for financial aid. FTI includes income figures, tax liabilities, and other financial details relevant to the calculation of a student's Student Aid Index (SAI).
Federal Work-Study (FWS)
A program that provides part-time jobs for students with financial need to help pay for their education.
FERPA (Family Educational Rights and Privacy Act)
A federal law protecting the privacy of student education records.
Form 1098-T (Tuition Statement)
This form is issued by eligible educational institutions to students and reports amounts paid for qualified tuition and related expenses. It is used by students (or their parents) to claim education credits, such as the American Opportunity Credit or the Lifetime Learning Credit on their tax return.
FSA ID
A username and password that allows students to log in to the FAFSA website and sign their application electronically.
Future Act Data Direct Exchange (FA-DDX)
A streamlined process for transferring IRS tax information directly into the FAFSA. This automated system reduces the need for manual entry, ensuring accuracy and simplifying the financial aid application process.
G
GPA Verification
The process of confirming a student’s GPA to determine their eligibility for financial aid, such as the Cal Grant.
H
Household Size
The number of people in a student’s household, which is used to calculate their financial aid eligibility.
I
Independent Student
A student who does not need to provide parental information on the FAFSA due to certain conditions, such as being over 24, married, or having dependents.
Interest Rate
The percentage of the loan principal charged by the lender for borrowing money.
IRS (Internal Revenue Service)
The federal agency responsible for tax collection and enforcement.
IRS 1040 Form
The standard tax form used by individuals to file their annual income tax returns in the United States.
ITIN (Individual Taxpayer Identification Number)
A tax processing number issued by the IRS for individuals who are not eligible for a Social Security Number (SSN).
J
K
L
Legal Guardianship
A court order that designates someone other than a student’s parents as their legal guardian, affecting their dependency status on the FAFSA.
M
Major
The primary field of study chosen by a student in college.
Master Promissory Note (MPN)
A legal document that federal student loan borrowers must sign, agreeing to the loan terms and repayment conditions.
N
National Student Loan Data System (NSLDS)
The U.S. Department of Education’s central database for student aid, where students can view their federal loan and grant information.
Net Price Calculator
A tool that helps estimate the total out-of-pocket cost of attending a college after financial aid.
O
Overpayment
When a student receives more financial aid than they are eligible for, requiring repayment.
P
Pell Grant
A federal grant awarded to undergraduate students with significant financial need.
Pell Grant Lifetime Eligibility Used (LEU)
The limit on how much Pell Grant funding a student can receive in their lifetime, capped at six years of full-time enrollment.
Professional Judgment
The flexibility given to a Financial Aid Administrator under the Higher Education Act to make adjustments to student eligibility for federal aid on a case-by-case basis.
Q
R
Refund Date
The date when any excess financial aid funds, after tuition and fees are paid, are refunded to the student.
Return to Title IV (R2T4)
A federal policy requiring schools to return unearned financial aid if a student withdraws before completing 60% of the term.
S
Starting with the 2024-25 academic year, the SAI replaces the Expected Family Contribution (EFC) on the financial aid application. The SAI is a number used to determie a student's eligibility for financial aid by evaluating their family's financial situation.
Schedule A (Itemized Deductions)
Used by taxpayers to report itemized deductions, such as medical expenses, state and local taxes, mortgage interest, and charitable contributions, instead of taking the standard deduction. It is beneficial for those whose itemized deductions exceed the standard deduction amount.
Schedule B (Interest and Ordinary Dividends)
Used to report taxable interest and dividends from stocks, bonds, and other financial accounts if the amounts exceed certain thresholds. Taxpayers with more than $1,500 in interest or dividend income are required to file this schedule.
Schedule C (Profit or Loss from Business)
Used by self-employed individuals, independent contractors, and small business owners to report income and expenses from their business. It calculates the business’s profit or loss, which then flows to the main tax return.
Schedule D (Capital Gains and Losses)
Used to report gains or losses from the sale of assets like stocks, bonds, real estate, and other investments. It tracks short-term and long-term gains and losses, which are taxed at different rates.
Schedule E (Supplemental Income and Loss)
Used to report income or loss from rental properties, royalties, partnerships, S-corporations, estates, trusts, and residual interests in REMICs. It’s often used by taxpayers who have income from passive sources or investments.
Schedule F (Profit or Loss from Farming)
Used by farmers to report income and expenses related to their farming activities. It helps calculate the farm’s profit or loss, which is included in the taxpayer’s income.
Schedule H (Household Employment Taxes)
Used by taxpayers who employ household workers (such as nannies, housekeepers, or gardeners) to report employment taxes, including Social Security, Medicare, and unemployment taxes on their household employee’s wages.
Schedule 1 (Additional Income and Adjustments to Income)
- Part I reports additional types of income that aren’t included on Form 1040, such as business income, alimony received, unemployment compensation, rental income, capital gains, and gambling winnings.
- Part II covers adjustments to income, including educator expenses, health savings account (HSA) deductions, moving expenses for the Armed Forces, and deductions for contributions to retirement accounts (like an IRA).
Schedule 2 (Additional Taxes)
- Part I covers alternative minimum tax (AMT), which ensures that high-income earners pay a minimum amount of tax even if they have many deductions or credits.
- Part II includes other types of taxes, such as self-employment tax, household employment taxes, and repayment of excess advance premium tax credits received through health insurance subsidies.
Schedule 3 (Additional Credits and Payments)
- Part I includes nonrefundable credits, such as the foreign tax credit, credit for child and dependent care expenses, education credits, and the retirement savings contribution credit.
- Part II lists other payments and refundable credits, including the net premium tax credit, the American opportunity credit, and the amount paid with an extension to file.
SSN (Social Security Number)
A nine-digit number assigned to U.S. citizens and eligible residents, required for financial aid applications like the FAFSA.
State Aid
Financial aid provided by the state in which the student resides, such as Cal Grants in California.
Student Aid Report (SAR)
A summary of the information provided on the FAFSA, sent to students after their FAFSA is processed.
Student Educational Plan (SEP)
An academic roadmap developed by a student and their academic counselor, outlining the courses needed to complete their degree or certificate program.
T
Tax Return Transcript
A document provided by the IRS that summarizes the tax return information you submitted for a specific tax year. It includes most of the line items from your original tax return (Form 1040) but does not reflect any changes made after filing, such as amendments.
U
Undeclared Major
A student who has not yet chosen a major field of study.
Unusual Enrollment History (UEH)
A review triggered when a student has attended multiple schools in a short period, potentially affecting their financial aid eligibility.
Untaxed Income
Income not subject to taxes, such as child support, workers’ compensation, and untaxed Social Security benefits, which must be reported on the FAFSA.
V
Verification
The process used by colleges to confirm that the information submitted on the FAFSA is accurate, often requiring additional documentation.
Verification of Nonfiling Letter
A letter from the IRS confirming that the taxpayer did not file a tax return for a specific year. This letter is often required for financial aid purposes to prove that an individual was not required to file a tax return.
W
Wage and Income Transcript
A transcript that shows data from forms like W-2s, 1099s, and 1098s. This document is used to verify income and tax withholding information reported by employers and other sources.
Webgrants 4 Students (WGS)
An online portal provided by the California Student Aid Commission (CSAC) that allows students to manage their state financial aid. Through Webgrants, students can access their Cal Grant and other state financial aid awards, verify their eligibility, update personal information, and check the status of their awards.
Withdraw
The process of formally leaving a class or school, which may impact financial aid eligibility and academic progress.