Financial Aid Glossary

Contributor
Beginning in 2024-2025, any individual required to provide consent and approval for federal tax information (FTI) along with their signature on the FAFSA form, including the student; the student’s spouse; a biological or adoptive parent; or the parent’s spouse (stepparent).

Cost of Attendance (COA)
Your total cost of attending school for one academic year, including tuition and fees, books and supplies, living expenses, and transportation. The Cost of Attendance represents the highest dollar amount of financial aid a student can receive during an award year.

Direct Costs
Charges included in the Cost of Attendance that the you pay directly to the university. These costs generally include tuition, housing, fees, meals/food (for students residing on campus), health insurance (if insurance coverage is not documented), or any other expenses paid to the school for enrollment.

Educational Loan
Money borrowed from the federal government, a college or university, or a private source like a bank or financial institution to pay for educational expenses and must be paid back with interest. Educational loans have varying fees, interest rates, and repayment terms. The following types of loans are available:

• Federal Direct Subsidized Loan
  An undergraduate student loan based on financial need. The loan is borrowed directly from the U.S. Department of Education and offers students a reduced, fixed interest rate and flexible repayment terms. The interest is subsidized, meaning that interest does not accrue while you are attending school at least half-time, during the first six months after you leave school (referred to as a grace period), and during periods of deferment (postponement of loan repayment). The annual loan limit is determined by year in school and dependency status. Aggregate loan limits also apply.
• Federal Direct Unsubsidized Loan
  A student loan that is not based on financial need. The loan is borrowed directly from the U.S. Department of Education and offers students a reduced, fixed interest rate and flexible repayment terms. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins. The annual loan limit is determined by year in school and dependency status. Aggregate loan limits also apply.
• Federal Direct PLUS Loan for Parents
  A loan that may be borrowed by the parent of a dependent, undergraduate student. Eligibility is not based on financial need, but a credit check is required. The maximum annual PLUS Loan amount that a parent can borrow is the cost of attendance (COA) minus any other financial aid received
• Federal Direct Graduate PLUS Loan
  A loan that may be borrowed by a graduate student. Eligibility is not based on financial need, but a credit check is required. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins. The maximum annual PLUS Loan amount that a graduate student can borrow is the cost of attendance (COA) minus any other financial aid received.
• Private Loan
  A student or parent loan borrowed from a bank, credit union, private company, a nonprofit or state-affiliated lender, or from the university directly. Private loans may be used in addition to or instead of federal loans. Interest begins to accrue when the loan is disbursed, and repayment may begin while the student is still enrolled in school.

Expected Family Contribution (EFC)
A measure of your family’s financial strength that is calculated according to a formula established by federal law. The information you report on your FAFSA form is used to calculate your EFC. Your EFC is neither the amount of money your family will have to pay for college nor the amount of federal student aid you will receive. It is an index used by the school to calculate the amount of federal student aid you are eligible to receive.

FAFSA Submission Summary
Beginning in 2024-2025, replaces the Student Aid Report (SAR) as the student’s output document providing a summary of data reported on the FAFSA form.

Federal Work-Study (FWS)
A federally-funded program that provides job opportunities to students who have financial need. Eligibility is determined according to the results of the FAFSA and availability of funds.

Fees
Charges applied to your school bill in addition to tuition, housing, and food. They include your orientation fee, student activity fee, and other charges associated with your labs or classes.

Financial Aid Package
The total combination of your scholarships, grants, work-study, and loans.

Financial Need
The difference between your Cost of Attendance (COA) and your Expected Family Contribution (EFC).
COA - EFC = Financial Need

Free Application for Federal Student Aid (FAFSA)
A form completed by current and prospective college students to determine eligibility for student financial aid, such as grants, work-study, and loans. The FAFSA form is available online at StudentAid.gov. Xavier's federal school code for the FAFSA is 003144.

Gift Aid
Funds awarded to the student that do not have to be repaid, unless the student fails to meet certain criteria, such as, a service requirement that is specified as a condition of the gift aid or not completing the period for which the aid was awarded.

Grant
Gift aid given to a student based on financial need. Grants generally do not have to be repaid.

Indirect Costs
Estimated expenses in the Cost of Attendance that are not paid directly to the institution, such as rent you pay to a landlord if you live off campus.

Loan Entrance Counseling
An online loan counseling session required of first-time federal student loan borrowers. The counseling ensures that you understand the terms and conditions of your loan(s) and your rights and responsibilities.

Loan Servicer
The company that collects payments, handles customer service inquiries, and manages other services associated with student loans. The Department of Education assigns all federal loans to loan servicers. Private lenders also may use loan servicers to handle the administrative tasks related to maintaining private loans.

Net Cost
The amount of direct and indirect costs remaining after all gift aid (grants and scholarships) have been subtracted. The net cost can be covered through a variety of sources, including savings, income, and education loans.

Master Promissory Note (MPN)
A legal document in which you promise to repay your loan(s) and any accrued interest and fees. The MPN also explains the terms and conditions of your loan(s).

Scholarship
A type of gift aid which usually is based on academic merit, talent, or a particular area of study.

Student Aid Index (SAI)
Beginning in 2024-2025, replaces the Expected Family Contribution (EFC) as a formal evaluation of a student’s approximate financial resources to contribute toward their education for a specific award year. The SAI is based upon the information you provide on the FAFSA form. Your SAI is neither the amount of money your family will have to pay for college nor the amount of federal student aid you will receive. It is an index used by the school to calculate the amount of federal student aid you are eligible to receive.

Student Aid Report (SAR)
A paper or electronic document that gives you some basic information about your eligibility for federal student aid and lists your answers to the questions on your FAFSA form. You should check the accuracy of reported data and make corrections if necessary.

Verification
A federally mandated process which requires the Office of Student Financial Services to confirm the accuracy of data provided on the FAFSA form. If selected for verification, you will be asked to submit documents to support the information you reported, e.g., federal income tax returns, W-2 forms, and/or photo identification. Verification can result in changes to the student's financial aid eligibility if the documentation does not match what was reported on the FAFSA form.