Glossary
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9-Pay
An installment payment option for tuition, fees and room and board. It allows participants to make their tuition and fee payments to Northwestern University in nine monthly installments instead of at the start of each term. There are no finance or interest charges. It is administered by the Office of Student Accounts.
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appeal
To request reconsideration of your financial aid award, based on a change in financial circumstances or information that was not included at the time of the initial decision.
actual
Funds are referred to as being "actual" once they have disbursed to your account.
alternative loan
A private or alternative loan is any loan that is not a federal educational loan.
accrued interest
The interest on a student loan that begins to accumulate after a student completes school. This interest is charged on the principal amount of the loan.
anticipated
Funds are referred to as being "anticipated" when they have not yet disbursed to your account.
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borrower
Person responsible for repaying a loan who has signed and agreed to the terms in the promissory note.
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capitalize
Adding accumulated interest to the loan principal rather than having the borrower make monthly interest payments. Capitalizing interest increases the principal amount of the loan and, therefore, the total cost of the loan.
consumer information
Information Title IV institutions are required to disclose to their consumers, enrolled students, and prospective students.
consolidation
A loan funded by a private lender that combines multiple Title IV student loans into a single loan with one monthly payment.
cash advance
If you have anticipated financial aid that exceeds the amount due on your bill, and you need to access these funds for living expenses, you may request a cash advance.
co-maker
A signer other than the borrower who agrees to assume responsibility for repayment in the event that the borrower fails to repay.
custodial parent
In a family where the parents are divorced, separated or were never married, the custodial parent is the person who has primary care, custody or control of the child.
CAESAR
Computer Assisted Electronic Student Access Route. The student portal to Northwestern's Student Enterprise System, where students can manage their enrollment, financial aid and billing accounts and update contact information.
cash management
Students must respond to a cash management statement indicating whether they authorize the University to apply Federal Title IV funds towards discretionary charges on their student billling account. It is a federal requirement that the student provide a response if he is a recipient of Federal Title IV funding.
cost of attendance
A student's total cost of attending an institution for a specified period of time. The COA includes tuition and fees; room and board; an allowance for books, supplies, transportation, loan fees, and some miscellaneous expenses as well.
co-signer
A signer other than the borrower who agrees to assume responsibility for repayment in the event that the borrower fails to repay.
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disbursement
When loan proceeds are paid by the school to the student or parent borrower.
default
Failure to repay a loan in accordance with the terms of the promissory note.
deferment
The temporary postponement of loan payments.
degree-seeking program
A course of study that leads to the awarding of a degree.
dependent student
A student that is financially dependent upon a parent or legal guardian or a student who does not meet certain criteria for being classified as independent.
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emergency loan
The University sponsors an emergency loan program, which is available to any Northwestern student and is administered by the Office of Financial Aid.
earnings expectation
The amount that a student is expected to contribute from his earnings to help pay for his educational expenses.
entrance interview
Title IV institutions must offer loan counseling to first-time federal student loan borrowers before disbursing the loan. Entrance counseling covers the borrower's rights and responsibilities, the terms and conditions of the loan, and the consequences of default.
expected family contribution
A comparative measure, determined according to a need analysis formula, of how much the student and his or her family can be expected to contribute to the cost of the student's education for an award year. This figure is used to determine an applicant's eligibility for financial aid. The federal EFC figure is shown on the SAR and ISIR received after completing the FAFSA.
EFT
Electronic Fund Transmission. Most lenders now send loan proceeds electronically, eliminating the need for students to endorse a paper check.
exit interview
A group or individual session during which borrowers who are leaving school or dropping below half-time enrollment receive important information about their repayment obligations.
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fixed interest rate
A loan with an interest rate that will remain at a predetermined rate for the entire term of the loan.
federal need
The cost of attendance minus the Federal EFC from the SAR equals the student's federal financial need.
federal Title IV aid
Financial aid programs for postsecondary students, authorized under Title IV of the Higher Education Act of 1965. The programs are administered by the U.S. Department of Education. Title IV federal student aid programs include: Pell, SEOG, ACG, SMART, Work-study, Perkins loan, Stafford loan.
FAFSA
Free Application for Federal Student Aid. The form that must be completed in order to receive federal student aid. The FAFSA gathers data needed to calculate the Expected Family Contribution (EFC), to determine federal student aid eligibility.
federal aid
Aid that is funded by the federal government, such as the Pell Grant and the Perkins Loan.
forbearance
An arrangement to postpone or reduce a borrower's monthly payment amount for a limited and specified period, or to extend the repayment period. The borrower is charged interest during forbearance.
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guarantor
A State or private nonprofit agency that has an agreement to administer the Guaranteed Student Loan programs. The agency insures lenders against losses due to a borrower's default. Also called "guarantee agency."
grace period
A period before the first payment must be made on a loan. The grace period starts the day after a borrower ceases to be enrolled at least half time.
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home institution
The institution at which the student is enrolled in a degree-seeking program.
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in-school period
The period during which a borrower pursues his or her studies as at least a half-time student at a participating school. This period begins with the first date of disbursement and ends with the beginning of the grace period.
independent student
A student who meets one of the following criteria: the student is 24 years or older, a graduate or professional student, married, orphaned or a ward of the court, veteran of the armed services, or has documents describing circumstances of independence.
iPROMise
A third-party website that handles the online Perkins loan application process for Northwestern.
institutional need
The cost of attendance minus the institutional EFC equals the student's institutional financial need.
interest
A loan expense charged by the lender and paid by the borrower for the use of borrowed money. The expense is calculated as a percentage of the principal amount (loan amount) borrowed.
ISCF
International Student Certification of Finances.
insurance fee
The amount charged a lender by a guarantee agency for insuring the lender against losses on Stafford loans. The lender, however, may pass the cost of the insurance fee to the borrower.
ISFAA
International Student Financial Aid Application.
institutional aid
Aid that is funded by the University, such as the NU Loan.
ISAC
Illinois Student Assistance Commission. ISAC offers Illinois residents a variety of grant and scholarship programs such as MAP, and also acts as a guarantee agency for federal Stafford loans.
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loan certification
A loan must be certified, or approved, by the Office of Financial Aid.
loan limits
Limits placed on student borrowers in terms of the maximum numbers of dollars they may obtain through Federally funded Student Financial Assistance programs (SFA). Loan limits vary by type of loan, academic level, program length, and whether a student is dependent or independent.
loan period
The period of enrollment for which a loan is being borrowed.
lender
A lending institution.
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merit
Eligibility is determined by academic merit.
master promissory note
The legal document that requires a federal student loan borrower to repay the funds borrowed. It may be used for several loans.
MAP
Monetary Assistance Program. A need-based grant program for Illinois residents.
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Notice of Guarantee
Sent by the guarantee agency to the borrower when a loan has been guaranteed.
needs analysis
The statutorily defined method of analyzing household and financial information to determine a postsecondary student's need for federal student aid.
NU Loan
The NU Loan Program is an institutionally sponsored loan program administered by the Student Loan Office at Northwestern.
need-blind admission
An applicant's candidacy for admission is not in any way affected by his ability to afford tuition costs.
non-need-based
Eligibility is not determined by financial need.
NSLDS
National Student Loan Data System. The federal database that collects and maintains student loan and grant data on Title IV federal student aid recipients.
need-based
Eligibility is determined by financial need.
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outside scholarship
A private or outside scholarship is any scholarship that is awarded to you from a source other than the University.
OWLS
Online Web Loan System. Students apply online for the NU Loan via this system.
origination fee
A fee charged and deducted from the proceeds of an FFEL program loan before the loan is disbursed. The origination fee offsets some of the administrative costs of loan processing. The fee must not exceed the maximum rate established by law. This fee is deducted from the interest and special allowance the Federal government pays the lender. Generally, lending institutions pass this fee on to borrowers at the time the loans are made.
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private loan
A private or alternative loan is any loan that is not a federal educational loan.
professional judgement
A provision in the law allowing financial aid administrators to make individual adjustments to override a student's dependency status (from dependent to independent), to adjust the components of a student's cost of attendance (COA), and to adjust the data elements used to calculate the student's Expected Family Contribution (EFC). Professional judgment can only be used on a case-by-case basis and the reason must be documented in the student's file. Professional judgment cannot be used to circumvent the law or Title IV regulations. A parent's unwillingness to assist a dependent student is not by itself grounds for a dependency override.
Perkins
A campus-based federal loan program that provides low-interest student loans to students with financial need.
principal
The total sum of money borrowed.
Pell
A federal grant program for undergraduate students with financial need.
prospective
Someone who has, or is considering, applying for admission to the University.
private scholarship
A private or outside scholarship is any scholarship that is awarded to you from a source other than the University.
PIN
The PIN is a unique identifier that lets applicants (and parents) access or change their FAFSA information. Most importantly, the PIN can be used to electronically 'sign' the application. Similar to a bank PIN, the PIN should be kept secure and private. All users (students and parents) are required to activate their PINs before use, and all users must actively agree not to share their PIN with anyone. Any student can obtain a PIN at ED's PIN Registration Web site, www.pin.ed.gov.
promissory note
A legally binding contract between a lender and a borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid.
PLUS
Parent Loans for Undergraduate Students. Loans taken out by parents for the purpose of helping to pay for their children's undergraduate education. Parents are responsible for all interest charges. The loan value may not exceed the full cost of the student's education, minus any other financial aid that the student receives.
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refund
If the financial aid applied to your account exceeds the amount due on your bill, you may request a refund. The funds must be actual, not anticipated.
repayment
The period during which a borrower is responsible for repaying his or her loan. Depending on the type of loan, repayment can begin either at the end of the grace period or with the very first disbursement of the loan.
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self-help
Financial aid that must be repaid (loans).
subsidized Stafford
A federally subsidized student loan made on the basis of the student's financial need and other specific eligibility requirements. Stafford Subsidized loans have subsidized interest, which means that the federal government does not charge interest on these loans while borrowers are enrolled at least halftime, during the six-month grace period following graduation, or during authorized periods of deferment. Stafford Subsidized loans are available to students while the student is in school. The borrower begins to repay the principal and interest after leaving school.
SEOG
Federal Supplemental Educational Opportunity Grant. A Campus-based program that provides grant assistance to needy undergraduate students. Priority in awarding Federal Supplemental Educational Opportunity Grant funds is given to students who have exceptional financial need and are Federal Pell grant recipients.
satisfactory academic progress
Satisfactory Academic Progress. A satisfactory rate of student course-completion determined using qualitative and quantitative measures. By law, schools whose students receive Title IV funds must establish policies for monitoring satisfactory academic progress (SAP). Schools must check at least once each academic year and document for each payment period that each student receiving Title IV aid is progressing satisfactorily in their academic program.
SAR
Student Aid Report. A federal "output" document sent directly to a student from ED's Central Processing System (CPS) that summarizes information submitted on the student's Free Application for Federal Student Aid (FAFSA) and provides the student's Expected Family Contribution (EFC). The SAR is either a paper document mailed to the student or a Web document that can be accessed via a secure link the student receives through email.
separation
The point at which the student graduates, withdraws or leaves the University.
servicer
A company employed by a lender or secondary market to perform the administrative tasks, such as collecting payments, that are associated with education loans. Original interest and repayment terms remain in effect.
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to-do item
On CAESAR, students can view a checklist of outstanding items or actions that they need to complete in order to receive financial aid. These are called to-do items.
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unsubsidized Stafford
A federal student loan made made to borrowers meeting specific eligibility requirements. Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal). Stafford Unsubsidized loans are available to undergraduate students while the student is in school.
UAPP
University Aid Application. A required document for current and returning students applying for need-based financial aid.
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verification
The process a school follows to check the accuracy of information reported by a student on the Free Application for Federal Student Aid (FAFSA). If an application is selected for verification by the Central Processing System (CPS), it will be indicated on the resulting Student Aid Report (SAR): an asterisk will appear to the right of the applicant's Expected Family Contribution (EFC). Schools may also choose to verify other applications. Whether the application is selected by the CPS or chosen for verification by the school, the school verifies the application information by comparing it to documentation provided by the student (and parents, if required).
variable interest rate
Rate of interest on a loan that is tied to a stated index and changes annually every July 1 as the index changes.
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