Financial Aid Terms

The following financial aid terms are important for you to know and understand, listed alphabetically. We suggest that you print and keep this page as part of your financial documents for future reference.

Academic Year The period of time used by a school to measure a quantity of study. An academic year at University of Phoenix is concluded when a student completes 30 weeks of instructional time and 24 credit hours.
Aggregate Level Maximum loan amounts a student can receive for their entire academic career.
Award Letter The University of Phoenix letter that will detail the amount of your financial aid award along with academic year, loan period, and disbursement dates.
Award Year The period of time used by the Department of Education to award financial aid, beginning on July 1 and ending on June 30 of the following year.
Base Stafford The Base Stafford loan amount is based on the student’s need as determined by the student’s cost of attendance (COA) minus what the student’s expected family contribution (EFC) and any other financial assistance. What is determined to be the need will be the subsidized portion amount and the remainder amount, if any, will be unsubsidized funds.
Certification The process of calculating student eligibility, awarding federal funds, and completing the loan application process.
Cost of Attendance The COA includes tuition and fees; room and board (or an allowance for housing and food); an allowance for books, supplies, transportation, loan fees, and dependent care (if applicable); disability related expenses, and some miscellaneous expenses as well.
Credit Balance Any student aid received in excess of tuition and fees for the disbursement period.
Deferment Occurs when a borrower is allowed to postpone repaying a loan. Most federal loan programs allow students to defer their loans while they are in school and attending at least half-time.
Dependent Student For the purposes of applying for federal student aid, a student who does not meet any of the criteria for an independent student generally would be classified as a dependent student and would report parent information when applying for federal student aid. This is regardless of whether the student lives with his/her parents.
 
A dependent borrower can apply for a Stafford Loan. Dependent students may only borrow the base loan limit and not the additional unsubsidized amount for their grade level. Parents of dependent students may be eligible to apply for a PLUS loan on behalf of the student.
Direct Loan Program The Direct Loan Program is administered by the U.S. Department of Education. The Department of Education acts as a lender, providing funds for Stafford loans and PLUS loans in the same amounts as the Stafford and PLUS loans offered through the Federal Family Education Loan Program (FFELP).
Disbursement The release of loan funds to the school for delivery to the student borrower for the purpose of paying educational costs.
Disclosure Statement Lenders are required to provide their borrowers with a disclosure statement before issuing a loan. This disclosure statement provides the borrower with information about the actual cost of the loan and includes:
Interest rate
Origination fees
Default fees
Loan fees
Eligibility To be eligible to receive Federal Financial Aid, your must meet certain financial and academic criteria.
Expected Family Contribution 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.
FAFSA The Free Application for Federal Student Aid (FAFSA) is completed online. This application is used to apply all types of Federal Student Funding. There is no application fee; however, you will need to request a PIN to complete this application.
Federal Subsidized Stafford Loan A low interest, need-based federal loan made by a private lender that is not credit-based. The federal government pays the interest on the loan while the student is enrolled in school. Repayment on the loan begins six months after the date the student ceases enrollment. The loan may be paid back to the lender over the course of up to 10 years. Both graduate and undergraduate students may apply for this loan.
Federal Unsubsidized Stafford Loan A low interest, non-need based federal loan made by a private lender that is not credit-based. The student has the option to defer payment on the loan and interest while enrolled in school; however, interest accrues while the student is in school. The loan may be paid back to the lender over the course of up to 10 years. Both graduate and undergraduate students may apply for this loan.
Federal Perkins Loan A low-interest (5%) loan for both undergraduate and graduate students with exceptional financial need. University of Phoenix is the lender for the loan, and the loan must be repaid to the University. The loan is made with government funds with a share contributed by the school.
 
A Perkins Loan borrower is not charged any fees. However, if a student misses a payment, makes a late payment, or makes less than a full payment, late charges and collection costs will apply.
 
After the student graduates or leaves school, he/she has nine months before beginning repayment. Deferments in addition to the grace period may apply. During periods of deferment and the grace period, interest does not accrue. The monthly payment amount will depend on the amount of the debt and the length of the repayment period. Forty dollars is the minimum monthly payment.
Federal PLUS Loan A low-interest, non-need based federal loan made by a private lender that is credit-based. The borrower on the loan is the parent(s) of a dependent student or is a graduate student. The lender determines credit worthiness. Repayment begins 60 days from the date the loan is fully disbursed by the lender. The loan may be paid back to the lender over the course of 10 years.
Grace Period The period of time a lender allows for a borrower to defer payment on a loan. Interest may or may not accrue during the grace period.
 
The grace period on a Stafford loan is the six month period after graduating or withdrawing from school during which time the borrower is not required to begin repaying his/her student loan.
 
The PLUS loans do not have a grace period.
Grade Level The number of transfer credits officially received by the University at the time a student's loan application is certified for financial aid.
Grade Point Average (GPA) Grade Point Average is calculated by dividing the number of credits completed by the number of points for completed courses.
 
Grade Points:
A = 4.0
B = 3.0
C = 2.0
D = 1.0
F = 0.0
 
To be eligible for Federal Financial Aid, you must maintain satisfactory academic progress.
Independent Student A student is classified as either dependent or independent for financial aid purposes. To be classified as an independent student for Title IV aid, a student must meet one or more of the following criteria:
  • Be at least 24 years old by December 31 of the applicable award year for which aid is sought
  • Be an orphan or a ward of the court through the age of 18
  • be a veteran of the U.S. Armed Forces
  • Have legal dependents other than a spouse (for example, dependent children or an elderly dependent parent)
  • Enrolled in a Master's degree program
  • Currently married
  • Serving as active duty military or purposes other than training
An independent borrower can apply for both subsidized and unsubsidized financial aid loans.
Loan Period The University of Phoenix Financial Aid Policy states that a student's loan period consists of a length of time when the student is in continual attendance.
PIN You will need to request a Personal Identification Number (PIN) from the U.S. Department of Education if you want to apply for Federal Financial Aid. It can be requested online by completing a short form. The PIN is confidential and should not be shared with anyone.
Overlapping Academic Years When a student applies for Federal Financial Aid through more than one college or university during the same 12-month academic year, an overlapping academic year occurs. The student is only eligible for the loan amount available for that academic year and cannot "double-up" by applying for a second loan in the full amount.
 
For example, a student may receive Federal Financial Aid from a college or university, then transfer to another institution during the same academic year. If the student applies for financial aid again through the second institution, only the balance of the available funds for that award year can be received.
Refund to Lender Sometimes a student has changes to his/her original schedule which causes him/her to be out of attendance for greater than 29 days.
 
When this happens, a calculation is made to determine how much funding the student has earned based on days in attendance. Per federal regulations, any funds over the amount earned must be refunded to the lender.
 
This may mean that the student will owe a balance to the University for charges already incurred.
Satisfactory Academic Progress To be eligible for Federal Financial Aid, you must maintain Satisfactory Academic Progress.
Shortfall A lack of funds to cover the entire cost of tuition and fees for the disbursement period.
Student Status When you apply for Federal Student Aid, your answers to certain questions will determine whether you're considered dependent on your parents or are independent of them.
 
Students are classified as dependent or independent because federal student aid programs are based on the principle that students (and their parents or spouse, if applicable) are considered the primary source of support for postsecondary education.
  • If you are considered dependent on your parents, their income and assets as well as your own must be reported
  • If you are considered independent, you will report only your own income and assets (and those of your spouse, if you're married).
Not living with your parents does NOT automatically classify you as independent.
Title IV (Stafford) Loans Federal loans for students which can be subsidized or unsubsidized.
Verification Thirty percent of all financial aid applications are randomly selected for verification to determine the validity of the information submitted. If your file is selected for verification, you will be required to submit various types of documentation, including a copy of tax forms. Once this information is submitted and verified, the loan packet can continue being processed.