Glossary of Financial Aid Terms

"A" Terms

Academic year

Generally defined as two academic semesters or three academic quarters.

Accrual date

The day interest charges begin to be added to the loan balance.

Accruing interest

The adding of interest to a loan amount. For some loans, interest charges begin to add up as soon as the loan is made, increasing the total due.

Adjusted Gross Income (AGI)

Taxable income after all allowable deductions are made, such as IRA deductions, moving expenses, self-employment taxes and health insurance, Keogh retirement plans and alimony payments. (For more information, please see the IRS' definition of AGI for individual taxpayers.)

Assets

For financial aid purposes, assets are generally considered to include cash on hand in checking and savings accounts, trusts, stocks, bonds, home equity, other securities (i.e., real estate, income-producing property, business equipment and business inventory). These assets are considered in determining expected family contribution (EFC).Assets in formal retirement plans are not generally considered in need in need analysis.

Award Letter

A letter notifying financial aid applicants of the assistance being offered. The award letter usually provides information on the types and amounts of aid offered, as well as specific program information, student responsibilities, and the conditions which govern the award. The award letter generally provides students with the opportunity to accept or decline the aid offered. The acceptance form and the award letter are often the same document or combined in the same notification. Please retain copies of aid awards you receive.

Award Year

The award year, for federal aid and most institutional purposes, begins on July 1 of one year and extends to June 30 of the next year.