No matter where you go to school, financial aid can be confusing if you don’t have the proper resources. At University of Maryland Global Campus, you can become financially savvy by learning these helpful terms.
Cost of Attendance (COA): The estimated cost of attending an institution for one academic year. This amount includes the following:
Direct Costs: Expenses the student and/or family pays to the college or university.
Enrollment Level: Level of the degree-granting program in which a student is enrolled. Basic levels of enrollment include undergraduate (students seeking an associate's degree, certificate, or bachelor's degree); postbaccalaureate (students seeking teacher certification); graduate (students working on a master's degree or professional degree); and postgraduate (for example, students enrolled in a doctoral program). The amounts and types of financial aid a student is eligible for is determined, in part, by their enrollment level.
Enrollment Status: Academic workload (or course load), as defined by the institution, that a student is carrying for a defined academic period. This normally relates to the number of credits taken by a student during a given academic period. For most traditional undergraduate term-based schools:
Expected Family Contribution: A measure of how much the student and/or family can be expected to contribute to the cost of the student's education for the year. The EFC is calculated according to a formula specified by the U.S. Department of Education and is based upon the information provided by the student and/or family during the Free Application for Federal Student Aid filing process.
Federal Pell Grant: A grant provided by the federal government to qualified undergraduate students who demonstrate exceptional financial need and have an Expected Family Contribution below a threshold designated annually by the U.S. Department of Education, based on the amount of program funds appropriated by Congress.
Federal Supplemental Educational Opportunity Grant: A grant provided by the federal government to qualified undergraduate students who demonstrate exceptional financial need. Priority is given to Pell Grant recipients and funds must be awarded by the school in lowest EFC order.
Gift Aid: Funds awarded to the student that do not have to be repaid, unless the student fails to meet certain terms, such as a service requirement, specified as a condition of the grant. Gift aid includes awards with titles such as grants, scholarships, remissions, waivers, etc. Gift aid can be awarded based upon many factors, including (but not limited to) financial need, academic excellence, athletic, musical, and theatrical talent, affiliation with various groups, or career aspirations.
Grant: Gift aid awarded to the student that does not need to be repaid. Grants are typically based on financial need.
Indirect Costs: Expenses incurred as a result of attendance that the student/family may pay to a third party (merchant, landlord, etc.) other than the college.
Net Cost: Amount of direct and indirect costs remaining after all gift aid (scholarship and grant) is subtracted.
Out-of-Pocket Cost: Difference between the cost of attendance and all gift aid. Out-of-pocket cost can be covered through a variety of sources, including savings, income, and educational loans
Scholarship: Gift aid awarded to the student that does not need to be repaid. Scholarship awards are typically based on merit or a combination of merit and need, such as academic excellence, talent, affiliation with various groups, or career aspirations.
Self-Help: Financial aid in the form of loans or student employment. Loans are used to help pay the remaining net costs after gift aid is deducted. Student employment earnings (including work-study awards) are generally not deducted from billed costs but can be used to help cover indirect costs and are paid in the form of wages to the student.
Student Loan: Funds awarded to the student that must eventually be paid back to the lender by the student
Federal Perkins Loan: A low-interest loan for educational expenses provided by the federal government for qualified individuals with exceptional financial need as defined by the institution. The Federal Perkins Loan needs to be repaid with interest once the student is no longer enrolled at least half-time.
Note: Under Federal law, the authority for institutions to make new Federal Perkins Loans ended on September 30, 2017. Therefore, UMGC students can no longer receive Perkins Loans. Learn more on the Federal Student Aid website.
Verification: Process to confirm the accuracy of data provided by the applicant on the FAFSA. In order to complete the verification process, students are required to provide certain documents to the school for review.