Federal Student Aid Handbook Glossary

New borrowers on or after July 1, 2013 cannot receive Direct Subsidized Loans for a period of time (measured in academic years) that exceeds 150% of the published length of their program of study.

The point at which a change in ownership interests must be reported to the Department. That is, when an owner acquires a total interest of 25% or more, or when an owner of 25% or more increases or reduces that interest.

The requirement that a proprietary school must derive at least 10% of its revenues for each fiscal year from sources other than the FSA programs or be subject to sanctions.

Office of Management and Budget Circular designated A-133

An identifying number assigned by DHS to identify and keep track of individuals who have been or are in contact with the immigration process. Used by ED to verify the immigration status of noncitizens applying for federal student aid.

American Association of Collegiate Registrars and Admissions Officers

Adjusted Available Income

Administrative Cost Allowance

The criteria schools must use to determine whether a student has ceased attendance.

A school must perform a Return of Title IV Aid (R2T4) calculation for students who have withdrawn (or otherwise ceased attendance). Criteria include but are not limited to

Academic attendance and attendance at an academically-related activity do not include activities where a student may be present, but not academically engaged.

The way in which a school structures its academic programs and measures progress over the program's length. For purposes of the FSA programs, there are three basic types of academic calendars: standard term, nonstandard term, and nonterm.

A previously offered grant program authorized by the Higher Education Act (HEA) under which grants were awarded during the first and second academic years of study to eligible financially needy undergraduate students who successfully completed rigorous secondary school programs of study.

For a program that measures program length in credit hours,

For a program that measures program length in clock hours,

For purposes of defining an academic year,

In the case of students attending summer terms and schools using borrower-based academic years, an individual student’s academic year for the purposes of monitoring Direct Loan annual loan limit progression and remaining eligibility under the 150% limit on Direct Subsidized Loans may be longer or shorter than the school’s defined academic year.

Demand for immediate repayment of the entire outstanding balance of a loan.

Once a borrower completes an MPN, it is examined in the Common Origination and Disbursement (COD) System for completeness. If, during processing, COD finds that all of the required fields on an MPN have been completed correctly, COD will accept the MPN. An accepted MPN is one of the criteria required for a loan to be booked.

A card, code, or other means of access to a financial account, or any combination thereof, that may be used by a student or parent to initiate electronic fund transfers.

A record in the general ledger that is used to collect and store similar information. For example, a school will have a cash account in which every transaction involving cash is recorded.

Journals, ledgers, and other records, such as spreadsheets, that support financial statements. It may be in computer-readable form or on paper.

Records of initial accounting entries and supporting records, such as checks and records of electronic fund transfers; invoices; contracts; general and subsidiary ledgers; journal entries and other adjustments to the financial statements that are not reflected in journal entries; and records, such as work sheets and spreadsheets, supporting cost allocations, computations, reconciliations, and disclosures.

A codification prepared by the Financial Accounting Standards Board (FASB) that reorganizes the thousands of U.S. Generally Accepted Accounting Principles (GAAP) pronouncements into roughly 90 accounting topics and displays all topics using a consistent structure. It also includes relevant U.S. Securities and Exchange Commission (SEC) guidance that follows the same topical structure in separate sections in the ASC.

Debts due from customers from sales of products and services reported as a current asset.

The status of public recognition that a national accrediting agency recognized by the Department grants to an institution or educational program that meets the established requirements.

The accounting method under which revenues are recognized on the income statement when they are earned (rather than when the cash is received).

Automated Clearinghouse

Audit Control Number

The cost of the asset including the cost to ready the asset for its intended use.

The Higher Education Act (HEA) of 1965, as amended, 20 U.S.C. 1071 et seq.

A disbursement record submitted to the Common Origination and Disbursement (COD) system indicating that the school has disbursed funds to the student or plans to within the next seven days.

The annual interest rate charged on a loan, which may be equal to or less than the applicable interest rate on that loan.

Americans with Disabilities Act

Average Daily Balance

Students may be eligible to receive up to 150% of their Pell Grant or Iraq & Afghanistan Service Grant (IASG) Scheduled Award for an award year. This provision is called Year-Round Pell/Year-Round IASG, or additional Pell/ additional IASG. A student’s additional aid eligibility is denoted by the “Additional Eligibility Indicator” or AEI, in COD.

A facility that is geographically apart from the main campus of the institution and at which the institution offers at least 50 percent of a program.

An individual's adjusted gross income as reported to the Internal Revenue Service (IRS). The rules for calculating AGI are set by the IRS, not the Department.

Journal entries usually dated the last day of the accounting period to bring the balance sheet and income statement up to date on an accrual basis (as required by the matching principle and the revenue recognition principle).

Anticipated Disbursement Listing

Process by which the Department or a guaranty agency, under Section 488A of the HEA, may garnish a portion of the wages of a Direct Loan or FFEL program borrower who is not making required student loan payments.

The ability a school must demonstrate in providing the education it promises and properly managing the FSA programs. The standards of administrative capability are set forth in 34 CFR 668.16.

Funds an institution participating in the Federal Pell Grant, Federal Work-Study (FWS), or Federal Supplemental Educational Opportunity Grant (FSEOG) programs is entitled to receive for an award year if it provides FWS employment, awards grants under the FSEOG Program, or disburses Federal Pell Grants to students in that year.

A type of forbearance on a Direct Loan or FFEL Program loan that the loan holder grants without requiring documentation from the borrower. For information on the conditions under which an administrative forbearance is granted, see 34 CFR 685.205(b) and 34 CFR 682.211(f) and (i).

Funds withheld from a participating school to collect program review, audit, and formal fine debts. The Department withholds a portion of a school's G5 (Grant Payment System) authorized payments and applies them toward the school's debt.

See Extended Processing.

Actual Disbursement Roster

A payment that a Federal awarding agency or pass-through entity makes by any appropriate payment mechanism, including a predetermined payment schedule, before the non-Federal entity disburses the funds for program purposes.

A school operating under this payment method is permitted to request funds in the school's iAvailable Balancei the school needs to make disbursements within three days of receipt of the funds.

For federal student aid purposes, a financial history that negatively impacts eligibility for a Direct PLUS Loan. A parent or a graduate or professional student who has an adverse credit history (as defined in the Direct Loan Program regulations) is not eligible to receive a Direct PLUS Loan unless he or she (1) documents to the satisfaction of the Department that there are extenuating circumstances and completes PLUS loan counseling, or (2) obtains an endorser for the loan who does not have an adverse credit history and completes PLUS loan counseling.

Auditor's opinion that financial statements do not fairly present the financial position, results of operations, or cash flows in conformity with generally accepted accounting principles.

A process under which a school obtains written confirmation of the types and amounts of Direct Loan funds that a student wants to receive for a period of enrollment before the school credits the student’s account with those loan funds.

An officer or employee of a covered institution or an institution-affiliated organization.

One of the ways a school can match its federal allocation in the FSEOG Program. In this approach a school ensures that the sum of all funds awarded to all FSEOG recipients in a given award year consists of 75% federal dollars and 25% qualified nonfederal funds. Note that each of a school's FSEOG recipients must receive some FSEOG federal funds.

The statutory maximum amount of principal an individual may borrow for all loans of a specific type, for all years of postsecondary study.

Adjusted Gross Income

The process of tracking the time elapsed from the date funds were drawn down to the date a school fully substantiates the drawdown by submitting actual disbursement records.

An agreement under which a student receiving a TEACH Grant commits to meeting all requirements of the TEACH Grant service obligation, and promises that for any TEACH Grant received that is converted to a Direct Unsubsidized Loan because the individual failed to meet the service obligation requirements, he or she will repay the loan in full, with interest charged from the date of each TEACH Grant disbursement.

Available Income

American Institute of Certified Public Accountants

Funds awarded to a school for use during a specific period of time. Campus-based funds (Federal Supplemental Educational Opportunity Grant and Federal Work-Study) are allocated to a school on an award-year basis. Sometimes referred to as obligation, award, or authorization.

See Cost of Attendance.

A contra asset account with a credit balance used to reduce the carrying amount of accounts receivable to net realizable value. The allowance balance is the estimated total of uncollectable accounts included in accounts receivable.

The national organization of certified public accountants.

For Return of Title IV Funds purposes, the amount equal to the percentage of the payment period or period of enrollment, as applicable, completed by the student multiplied by the total Title IV aid disbursed, plus the total amount of Title IV Aid that could have been disbursed to the student.

Dear Colleague Letter designation for training announcements

The amount a student would receive under the applicable Payment Disbursement Schedule for a given level of enrollment (full time, half time etc.), Estimated Family Contribution (EFC), and Cost of Attendance (COA).

The maximum TEACH Grant amount a student may receive for an award year based on enrollment status (full-time, three-quarter-time, half-time, or less-than-half-time).

The audit that schools and third-party servicers must submit each year. If the servicer contracts with several schools, a single audit can be submitted that covers its administrative services for all those schools.

The statutory maximum Direct Subsidized Loan or Direct Unsubsidized Loan amount that a student may receive for one academic year. The annual loan limit varies by grade level and (for Direct Unsubsidized Loans) the student's dependency status.

The yearly cost of borrowing money reflected as a percentage rate.

A report a participating school is required to compile and file annually with the Department that summarizes the school’s compliance with the institutional security policies and crime statistics requirements of 34 CFR 668.46.

A disbursement record submitted to the COD system indicating the amount and dates of funds the school plans to disburse.

Asset Protection Allowance

The maximum annual interest rate that a lender may charge under the Act on a loan.

Field on a SAR/ISIR showing the date a paper application was received by the FAFSA processor or the date an electronic FAFSA transmission was received by the CPS.

A distribution of amounts available for obligation into amounts available for specified time periods, programs, activities, projects, objects, or combinations thereof. The apportioned amount limits the obligations that may be incurred.

A form of budget authority provided by law that permits federal agencies to make payments out of the Treasury for specified purposes.

For Return of Title IV Funds purposes, a temporary interruption in a student’s program of study that meets the requirements of 34 CFR 668.22(d). A school is not required to treat a leave of absence as a withdrawal if it is an approved leave of absence.

Annual Percentage Rate

Alien Registration Number (also known as A-number)

Auditing Standards Board

An email address to which institutions that participate in the Title IV federal student aid programs can send questions about the administration of those programs.

Tangible or intangible items which have probable economic benefits that can be obtained or controlled.

Cash on hand, including the amount in checking and savings accounts, time deposits, money market funds, trusts, stocks, bonds, other securities, mutual funds, tax shelters, qualified education benefits, and the net value of real estate, income producing property, and business and farm assets. For a detailed explanation see the Higher Education Act, as amended, Part F, Section 480(f).

The transfer of all rights, authorities, and privileges associated with a Perkins Loan from a school to the Department of Education.

A school that provides primarily or exclusively a two-year program of postsecondary education in professional nursing leading to a degree equivalent to an associate degree in the United States.

Ability to Benefit

Any scholarship, grant, or other form of financial assistance, the terms of which require the recipient to participate in a program of intercollegiate athletics at the institution. Other student aid, of which a student-athlete simply happens to be the recipient, is not athletically related student aid.

Agreement to Serve

The process of assigning benefits or costs to time periods, programs, activities, projects, objects, or combinations thereof.

The Department's tool used to track, monitor and report day-to-day on the post-audit status of single audits, GAO audits, OIG-issued internal audits, external audits and alternative products (reports or memoranda issued by OIG that are not audit reports but raise issues that may need to be addressed by management).

Deficiencies which the auditor is required by §200.516 Audit findings, paragraph (a), to report in the schedule of findings and questioned costs.

Published by the Department's Office of the Inspector General (OIG), it assists independent auditors (IPAs) in performing audits of Federal Student Aid.

A description and schedule of audits to be performed in a certain period of time (ordinarily a year). It includes the areas to be audited, the type of work planned, the high-level objectives and scope of the work, and includes other items such as budget, resource allocation, schedule dates, and type of report issued.

Chains of evidence provided through coding, cross references, and documentation connecting accounting balances and other summary results with original transactions and calculations.

Board authorized by the AICPA to promulgate auditing and attest standards, quality control standards procedures, and implementation guidance for AICPA members performing such services.

A public accountant or a Federal, state, local government, or Indian tribe audit organization, that meets the general standards specified for external auditors in generally accepted government auditing standards (GAGAS). The term auditor does not include internal auditors of nonprofit organizations.

A statement regarding the requirement that an auditor be independent of the entity examined. Intended to remind financial statement users about the auditor's obligations related to independence and to serve as a reminder to auditors of these obligations.

Amount of FSA funds a school is currently eligible for in the year and program in question. The authorization is also called the Current Funding Level (CFL). In the Direct Loan and TEACH Grant programs, the authorization may also be referred to as the Cash Control Amount (CCA).

An electronic clearing system in which a data processing center handles payment orders that are exchanged among financial institutions, primarily through telecommunications networks. ACH systems process large volumes of individual payments electronically.

The result when an independent student or a dependent student's parents have income below a specific threshold and meet one of a group of other criteria, such as not needing to file a Form 1040 U.S. tax return. The flag indicates that the student met the statutory criteria for the automatic zero EFC calculation. See Simplified EFC Formulas.

Amount of cash available for a school to draw down through G5. The available balance is the difference between the authorized amount and the school's net drawdowns to date.

In general, parents' available income is determined by deducting from total income (as defined in HEA, section 480)

Application and Verification Guide

Automated Voice Response

The length of time in G5 during which schools can perform certain cash management functions. There are four award periods:

The period beginning July 1 and ending June 30 of the following year.

Academic Year (may refer to Award Year in some contexts)

The calendar year used for determining income, taxes, and other financial data when completing the FAFSA. Beginning with the 2017–2018 award year, the base year is the “prior-prior year” or two years before the first calendar year of the award year. For example, 2018 is the base year for 2020-2021.

A group of records submitted together. Batches can consist of one or more records. Users can submit data for students in a file called a batch. The batch contains a network header record, the Common Record with one or more students / awards / disbursements and the network trailer record. Periodic sweeps of a school's Student Aid Internet Gateway (SAIG) mailbox are performed to pick up these batches and send them to the COD System for processing.

Borrower-Based Academic Year

The month and year on which a grant award begins and ends. It is the funding period for the award, and includes any applicable amendments. Normally, the funding period is 12 months.

Superior method or innovative practice that contributes to the improved performance of an organization.

Bureau of Indian Affairs

An educational program in which two languages are used to provide content matter instruction.

Bureau of Labor Statistics

A document that reflects funds available on a student's account that can be used to purchase books and other educationally related materials from either a school or unaffiliated bookstore.

A loan that is a legal binding obligation between the borrower and the U.S. Department of Education. A loan is considered booked when the COD System has accepted the loan origination record (the award record has been linked to the MPN), the MPN, and the first actual disbursement record for that loan ID. Direct PLUS Loans also require an accepted credit decision on file in the COD System to be booked.

A TEACH Grant becomes booked when COD has accepted the TEACH Grant origination record, an ATS has linked to the grant, and an actual disbursement record has been accepted.

An individual to whom a Title IV education loan is made.

An academic year standard that may be used to measure Direct Loan annual loan limit progression (i.e., when a borrower becomes eligible for a new annual loan limit). Unlike a Scheduled Academic Year (SAY), a BBAY follows an individual student’s academic progress and does not begin and end at the same time each year.

A claim that is or could be asserted as a borrower defense when requesting discharge of a Direct Loan obligation.

Required under the HEA, the BRR Statement provides additional information about the terms and conditions of the loans a borrower receives under the MPN for Direct Loans.

A location of an institution that is geographically apart from and independent of the main campus of the institution. The Department considers a location of an institution to be independent of the main campus if the location

Borrower's Rights and Responsibilities

Property that is used in the operation of a trade or business, including real estate, inventories, buildings, machinery, and other equipment, patents, franchise rights, and copyrights.

Any building or property owned or controlled by an institution within the same reasonably contiguous geographic area and used by the institution in direct support of, or in a manner related to, the institution's educational purposes, including residence halls; and any building or property that is within or reasonably contiguous to the school's campus that is owned by the institution but controlled by another person, is frequently used by students, and supports institutional purposes (such as a food or other retail vendor).

The records created and maintained by a school's law enforcement unit or whatever office or school official is designated to be responsible for referring potential violations of law to local police authorities. Such records are exempt from the privacy restrictions of FERPA. A school may disclose information from these "law enforcement unit records" to anyone—including parents or federal, state, or local law enforcement authorities—without the consent of the eligible student.

Federal student aid programs under which funds are provided to participating institutions for awards to eligible students. The Campus-Based Programs include the Federal Perkins Loan Program the Federal Work-Study (FWS) Program, and the Federal Supplemental Educational Opportunity Grant (FSEOG) Program. (Note: The authority for institutions to make new Federal Perkins Loans ended effective September 30, 2017.)

In the Perkins Loan Program, the forgiveness of a portion of a loan debt for a borrower who meets certain regulatory criteria (usually service). In the Direct Loan Program, loan “cancellation” refers to the borrower’s request to have all or a portion of a loan cancelled (i.e., when the borrower does not want all or a portion of the loan). In the Direct Loan Program, cancellation of a loan debt in exchange for the borrower performing certain types of service is called “forgiveness,” and cancellation of a loan due to death, total and permanent disability (TPD), school closure, etc. is called “discharge.”

Corrective Action Plan

Tangible or intangible assets used in operations having a useful life of more than one year that are capitalized in accordance with GAAP.

Expenditures to acquire capital assets or expenditures to make additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to capital assets that materially increase their value or useful life.

Unpaid interest that has been added to the principal balance of a loan. Capitalization of unpaid interest increases the principal balance of the loan, and interest then accrues on the increased principal balance.

A school may spend up to 10% of its current year's FWS or FSEOG allocation (initial and supplemental) in the following award year (carry forward). A school is also permitted to spend up to 10% of its current year's FWS or FSEOG allocation (initial and supplemental) for expenses incurred in the previous award year (carry back).

Cost Accounting Standards

The general ledger account that reports currency, coins, undeposited checks, and the checking accounts of a company.

A system of accounting in which revenues are recorded when received in cash and expenses or expenditures are recorded when cash is disbursed.

The rules and procedures a school must follow to request, maintain, disburse, and otherwise manage FSA funds. A school's responsibilities are described in Subpart K of 34 CFR 668.

The regulations in Subpart K of 34 CFR 668 that contain the rules and procedures under which participating institutions request, maintain, disburse, and otherwise manage federal student aid program funds.

The amount available in the federal funds account at the payee's financial institution. Cash on hand is calculated as the total funds received less the Federal share of disbursements made, plus refunds received. The balance does not include accruals, accounts payable, or funds belonging to the Department of Education (e.g., interest earned), See also excess cash.

Campus-Based

Congressional Budget Office

Computer-Based Training

Cash Control Account

Central Contractor Registration

Cohort Default Rate

Cohort Default Rate Guide

The date on which a school takes a “snapshot” of its enrollment for reporting or record-keeping purposes.

Vendor and system designed by the U.S. Department of Education for viewing or correcting SAR information, requesting or analyzing ISIR data, and calculating and managing the return of federal student aid program funds.

Chief Executive Officer

A credential conferred by a state or similar governmental jurisdiction that authorizes the holder to practice as a certified public accountant in that jurisdiction.

Catalog of Federal Domestic Assistance

The number assigned to a Federal program in the Catalog of Federal Domestic Assistance.

The title of the program under which the Federal award was funded in the CFDA.

Current Funding Level

Chief Fiscal/Financial Officer

Consumer Financial Protection Bureau

Code of Federal Regulations

A listing of the accounts available in the accounting system in which to record entries. The chart of accounts consists of balance sheet accounts (assets, liabilities, equity) and income statement accounts (revenues, expenses, gains, losses).

Under the CFH Act, an otherwise Pell-eligible student whose parent or guardian died as a result of active service in the line of duty as a Public Safety Officer (defined under 42 U.S.C. 3796b, or a fire police officer) may receive the maximum Pell Grant and increased amounts of other federal student aid if the student was less than 24 years old when the parent or guardian died, or was enrolled at an institution of higher education at the time of the parent or guardian’s death.

A child or youth from ages 3 through 21, inclusive, who requires special education and related services because he or she has one or more disabilities as defined in section 602(3) of the Individuals with Disabilities Education Act.

A subsidized government health benefit program affiliated with Medicaid and also a potential qualifier for the simplified needs test or automatic zero EFC.

Legislation from 1998 that prohibits any entity, including a government agency, from electronically conducting business or communicating with a person under age 13. Because of COPPA, applicants who are 12 or younger cannot complete FAFSA on the Web and must instead mail a paper FAFSA™ to a special address.

Chief Information Officer

Classification of Instructional Programs

A release of the Office of Management and Budget. Its full name is Audits of States, Local Governments, and Non-profit Organizations. The circular sets forth standards for obtaining consistency and uniformity among federal agencies for the audit of states, local governments, and non-profit organizations expending federal awards. Available at www.whitehouse.gov/omb/information-for-agencies/circulars/.

Procedure that compares an applicant’s name, date of birth, and SSN in CPS to that in the records of the Social Security Administration (SSA) and in special cases the Department of Homeland Security (DHS). The CPS will reject applications for insufficient or contradictory information. The result of the match with SSA or DHS is reported on the SAR and ISIR and includes a comment (text and code).

A lawsuit in which one or more parties seek class treatment under federal law (Federal Rule of Civil Procedure 23) or any State process analogous to Federal Rule of Civil Procedure 23.

The law that requires institutions to compile statistics for certain crimes that are reported to campus security authorities or local police agencies, including incidents of sexual assault, domestic violence, dating violence, and stalking. The full title is the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act.

The portion of a graduate medical education program that counts as a clinical clerkship for purposes of medical licensure comprising core, required clinical rotation, and not required clinical rotation.

A period of time consisting of

The calculation performed to establish whether certain programs offered in credit hours meet the standard for the minimum number of credit hours and can be considered eligible.

The process by which a Federal awarding agency or pass-through entity determines that all applicable administrative actions and all required work of the Federal award have been completed and required actions taken.

One of the award periods in G5. The closeout period immediately follows the suspension period. During closeout, the grant award is closed and any remaining cash is deobligated.

The steps a school must take when its participation in the Title IV programs ends, either voluntarily or involuntarily.

The process of closing a suspended award. The closeout process includes the following periods: liquidation, suspension, and closeout.

The process of preparing, entering, and posting closing entries.

A journal entry that balances revenue accounts and expense accounts. Closing entries will mean that the temporary accounts (income statement accounts and drawing account) will start the new accounting year with zero balances.

Configuration Management

Contracting Officer

One of two spouses who jointly obtained a consolidation loan under the Direct Loan or FFEL program that combined their individual eligible federal student loans into a single joint consolidation loan. Each co-maker is jointly and severally liable for repayment of the full amount of the joint consolidation loan, without regard to any subsequent change in marital status. The authority to make joint consolidation loans in the Direct Loan and FFEL programs ended effective July 1, 2006.

The term co-maker also includes one of two parents who are joint borrowers of a Federal PLUS Loan as previously authorized in the FFEL Program.

Cost of Attendance

Common Origination and Disbursement

The codification of the rules published in the Federal Register by agencies of the federal government. Each volume of the CFR is updated once each calendar year and issued quarterly. The volume for Education, Title 34, is updated on July 1 of each year. Cited as "34 CFR."

Councils of Governments

Cash on Hand

All of a school’s current and former students who during a fiscal year enter repayment on any Direct Subsidized Loan, Direct Unsubsidized Loan, or Federal Stafford Loan (subsidized or unsubsidized) they received to attend the school.

The number of students in a cohort who default on their loans during a fiscal year divided by the total number of students in the cohort, expressed as a percentage.

U.S. Department of Education publication designed to assist schools with their William D. Ford Federal Direct Loan (Direct Loan) Program and Federal Family Education Loan (FFEL) Program cohort default rate data. The guide is a reference tool in understanding cohort default rates and processes.

Real or personal property pledged as part or full security on a debt.

To pledge property as security (collateral) for a debt.

The activities and/or actions by lenders, guarantors, servicers, and collection agencies to obtain payment on unpaid loan principal and interest from a borrower after that borrower defaults on the loan.

A business organization that receives delinquent or defaulted loan accounts from lenders and attempts to collect on those accounts. A fee is charged for the service.

Costs incurred by a lender or its agents in collecting overdue payments. These charges may include, but are not limited to, attorney’s fees, court costs, and telegrams. They may not include routine costs associated with preparing letters or notices or making telephone calls to the borrower.

A consumer tool designed to help collect and review information that prospective students receive about costs and financial aid so that they can make informed decisions about which postsecondary institution to attend.

A school that provides primarily or exclusively a minimum of a two-year program of postsecondary education in professional nursing leading to a degree equivalent to a bachelor of arts, bachelor of science, or bachelor of nursing in the United States, or to a degree equivalent to a graduate degree in nursing in the United States, and including advanced training related to the program of education provided by the school.

Codes on a SAR/ISIR drawing attention to specific issues on a student's application. Each code corresponds to specific comment text for the award year. The last line in the "FAA Information" section on a SAR/ISIR shows all the codes generated on the record. FAAs must review the comment codes without reading every comment to find those that may require action.

The system used to process records for the Pell Grant, TEACH Grant and Direct Loan programs.

A document used as a guide by software vendors and schools to program their systems and process records through COD. It provides a COD system overview, a list of changes, processing information (e.g., business rules and edits), print specifications, and technical specifications. The appendices also contain additional reference information, such as conversion tables, report layouts, and Extensible Markup Language (XML) examples. Located at fsadownload.ed.gov/index.htm.

A file layout used by schools and the COD system to exchange Pell Grant, TEACH Grant, and Direct Loan data. The Common Record is a document formatted in XML.

A defender organization established in accordance with section 3006A(g)(2)(B) of title 18, United States Code.

Services that are identified by an institution of higher education through formal or informal consultation with local nonprofit, government, and community-based organizations, as designed to improve the quality of life for community residents, particularly low-income individuals, or to solve particular problems related to their needs. In order to be considered community service, the job has to be in an area that is open, accessible, and used by the community at large. For a more detailed list of community services see 34 CFR 675.2.

An offsetting balance. A requirement by some banks that a borrower maintain a minimum balance in a checking or savings account as a condition of a loan.

An innovative approach in higher education that organizes academic content according to competencies—what a student knows and can do—rather than following a more traditional scheme, such as by course.

Conformity in fulfilling requirements under various statutes and regulations.

Appendix XI to Part 200— Compliance Supplement (previously known as the Circular A-133 Compliance Supplement).

Process of testing to determine the compliance of the component or system.

The composite score standard combines different measures of the elements of financial health to yield a single measure of a school's overall financial health. This method allows financial strength in one area to make up for financial weakness in another area, and provides an equitable measure of the financial health of schools of different sizes. Included in the calculation are the following ratios: Primary Reserve, Equity, and Net Income.

A student work-learning-service program that

A degree, certificate, nondegree, or noncertificate program that

Internal controls performed by computer software as opposed to manual controls. Also means general and application controls over the computer processing of data.

In the Perkins Loan Program, automatic deferments schools must grant during periods of service for which schools also grant loan cancellation. Borrowers do not need to apply for these automatic deferments.

Condition whereby a student is admitted to an academic program provisionally until the student can demonstrate ability to succeed in the program by either furnishing documentation (such as transcripts or test scores) or receiving acceptable grades in program coursework. Students admitted in this manner are regular students only if the school accepts them into an eligible degree or certificate program.

A discrepancy in the information that a school has regarding a student that affects his or her eligibility for federal student aid. A school must resolve conflicting information about a student before that student can receive federal student aid.

Financial statements that reflect the total economic entity (all entities with same management are presented together and all related party transactions are eliminated from the statements). For example, on a consolidated income statement a corporation that owns several individual schools would report the total of all of its schools' activities. A consolidated balance sheet would report the combined assets except for claims against schools within its group.

The process of combining one or more loans into a single new loan.

A group of two or more eligible schools that interacts with the Department in the same manner as other schools, except that the business between the Department and the schools is channeled through a single point.

A written agreement between two or more eligible schools.

U.S. government agency that makes sure banks, lenders, and other financial companies treat citizens fairly.

The information that a school must provide about financial aid and its campus, facilities, student athletes, and gainful employment programs as well as information to promote campus security and fire safety and prevent drug and alcohol abuse, as required under HEA Sec. 485(f) and 34 CFR 668.41–50.

Coursework usually intended for adult and non-traditional students in which a student receives instruction that supplements his or her previous education. Student can receive Title IV aid for continuing education classes and credits only when those courses and credits are applicable to a degree or certificate program.

One of two or more accounts which partially or wholly offset another or other accounts; on financial statements, they may be either merged or appear together.

A legal instrument by which a non-Federal entity purchases property or services needed to carry out the project or program under a Federal award.

A written agreement between an eligible school and an ineligible school.

Documented activities, policies, and procedures that help an organization meet its objectives, attain its goals, and accomplish its mission.

A general ledger account containing the correct total amount without containing the details. For example, Accounts Receivable could be a control account in the general ledger. Each day the total of the day's credit and collections are posted to this account. However, the details involving students' accounts will be found in a subsidiary ledger.

Control activities are actions supported by policies and procedures that help ensure management directives are carried out properly and in a timely manner. Control activities can be classified either as preventive or detective. Preventive controls (e.g., approvals) attempt to deter or prevent undesirable events. Detective controls (e.g., reconciliations) attempt to detect undesirable events.

The overall attitude, awareness, and actions of directors and management (i.e., "those charged with governance") regarding the internal control system and its importance to the entity. A positive control environment is the foundation for all internal control standards. It provides discipline and structure as well as the climate of the workplace, which influences the quality of internal control.

Goals or standards for reducing or eliminating potential risks to an organization's mission.

The organizational structure, operational procedures, and administrative practices adopted by all levels of management to provide reasonable assurance that programs and administrative activities are effectively carried out.

Chief Operating Officer

A program that integrates classroom learning and structured work experiences directly related to the goals and objectives of the students larger educational program.

A capable individual responsible for administering all the Title IV, HEA programs in which a school participates and for coordinating those programs with the institution's other federal and nonfederal programs of student financial assistance. An individual is "capable" if certified by the state in which the school is located and the state requires certification of financial aid administrators. Other factors in determining capability include, but are not limited to, the individual's successful completion of Title IV program training provided or approved by the Secretary and previous experience and documented success in administering the Title IV programs properly.

Children’s Online Privacy Protection Act

A journal entry to correct an erroneous amount previously entered in the general ledger.

If schools select to have their Pell Grant data corrected rather than rejected, the COD system automatically corrects the data and sends a response to the school that submitted the record indicating that a correction took place, the element corrected, the original value, and the corrected value. Edits that can be corrected, rather than rejected, are indicated with a C/R in the Volume II, Section 4 – Edit codes in the COD Technical Reference.

Action taken by an auditee that (a) Corrects identified deficiencies; (b) Produces recommended improvements; or (c) Demonstrates that audit findings are either invalid or do not warrant auditee action.

Statement of the corrective actions related to noncompliance, to include a responsible official, milestones toward completion of the action, metrics which measure progress and remediation, and dates when these milestones will be addressed. CAPs are to be maintained by the organization, and the status is to be reported as directed.

A course provided by an institution under which the institution provides instructional materials, by mail or electronic transmission, including examinations on the materials, to students who are separated from the instructor. Interaction between the instructor and student is limited, is not regular and substantive, and is primarily initiated by the student. Correspondence courses are typically self-paced. If a course is part correspondence and part residential training, the Department considers the course to be a correspondence course. Note: A correspondence course is not distance education.

The requirement that less than 50% of a school's regular students be enrolled in correspondence courses for the school to be eligible to participate in the Title IV programs. This limitation may be waived for a school that offers a 2-year associate degree or 4-year baccalaureate degree program if it demonstrates to the Department that in that award year the students enrolled in correspondence courses receive no more than 5% of the total FSA program funds received by all of the school's students.

The monetary value of resources used or sacrificed, or liabilities incurred to achieve an objective, such as to acquire or produce a product, or to perform an activity or service. Depending on the nature of the transaction, cost may be charged to operations immediately, i.e., recognized as an expense of the period, or to an asset account for recognition as an expense of subsequent periods.

The cost in dollars, of a period of enrollment (such as an academic year). The COA for a student is an estimate of that student’s educational expenses for the period of enrollment. Defining a student’s COA is the first step in establishing a student’s federal student aid package. It sets the limit on the total federal student aid a student may receive. For a detailed explanation of the components included in Cost of Attendance see the Higher Education Act, as amended, Part F, Section 472.

The portion of project costs not paid by Federal funds (unless otherwise authorized by Federal statute).

Contacting Officer Technical Representative

Corrections on the Web

A type of tax-advantaged savings vehicle for college education.

Any institution of higher education, proprietary institution of higher education, postsecondary vocational institution, or institution outside the United States, that receives any federal funding or assistance.

Certified Public Accountant

Central Processing System

Central Processing System / Student Aid Internet Gateway

Call center that responds to questions about the Central Processing System (CPS), the Student Aid Internet Gateway (SAIG), Web products such as FAA Access to CPS Online, and assistance with software products such as EDconnect and EDExpress. Phone: 800-330-5947, 8:00 a.m. to 8:00 p.m. (ET), Monday through Friday.

Credit

See Title IV Credit Balance.

An agency that gathers and stores credit information on individuals, and provides reports of that information to organizations from whom the individuals are seeking to obtain credit. Borrowers whose federal education loans are in default are reported to credit bureaus.

A check of a Direct PLUS Loan applicant’s credit record performed by COD to determine whether the individual has an adverse credit history. A credit check is generated when: (1) the COD system receives a Direct PLUS Loan Award; (2) the Direct PLUS Loan applicant completes a Direct PLUS Loan Request on StudentAid.gov; or (3) the school (after obtaining the applicant’s authorization) initiates a credit check on the web through COD.

Except as provided in 34 CFR 668.8(k) and (l), a credit hour is an amount of work represented in intended learning outcomes and verified by evidence of student achievement that is an institutionally established equivalency that reasonably approximates not less than

Those matters addressed during the audit that (1) involved the most difficult, subjective, or complex auditor judgments; (2) posed the most difficulty to the auditor in obtaining sufficient appropriate evidence; or (3) posed the most difficulty to the auditor in forming the opinion on the financial statements. Critical audit matters ordinarily are matters of such importance that they are included in the matters required to be (1) documented in the engagement completion document that summarizes the significant issues and findings from the audit; (2) reviewed by the engagement quality reviewer; (3) communicated to the audit committee; and (4) any combination of the three.

Requires an auditor to communicate in the auditor's report (when the auditor expresses an unqualified opinion) critical audit matters that were addressed during the audit of the current period's financial statements. If the auditor determines that there are no critical audit matters, the auditor would state in the auditor's report that the auditor determined that there are no such matters to communicate.

A payment period that spans two award years.

Job Location and Development within the Community Service Work-Study Program.

Common Services for Borrowers

Customer Service Center

Common School Identifier

Community Service Learning (Program)

Customer Service Representative

Total amount of cash available for a school to draw down at any point in time, and is a subset of the school ceiling amount (SCA). A school’s current funding level may be adjusted based on the amount of substantiated cash. A change in CFL will directly impact the SCA. In G5, the CFL is called the Authorization.

Amounts owed by an entity for which the financial statements are prepared, and which need to be paid within the fiscal year following the reporting date.

Current Year

Dun and Bradstreet

Data Universal Numbering System (by Dun & Bradstreet)

The check that the CPS makes against other databases such as NSLDS and those maintained by other federal agencies: the Department of Defense, the Department of Justice, the Social Security Administration, the Department of Veterans Affairs, the Department of Homeland Security, and the Selective Service System. Data matches help to determine students' eligibility for federal student aid.

A four-digit unique student identifier that schools may use in combination with an applicant's identifying information to access the student's record if the school was not listed on the Free Application for Federal Student Aid (FAFSA).

Identification code assigned to a school by Dun & Bradstreet. The D-U-N-S number represents a school as a unique financial entity.

Violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors: the length of the relationship, the type of relationship, and the frequency of interaction between the persons involved in the relationship.

A calendar day, unless otherwise specified.

Debit

Debt Collection and The Debt Collection Improvement Act of 1996

Dear Colleague Letter

The Department of Defense Form DD 214 is the form, received at separation, that certifies a veteran’s service.

An ad hoc publication by the Department of Education addressing significant policy, system, and training issues and intended for college financial aid administrators and other customers.

A list of SSNs associated with people who have died, maintained by the Central Processing System (CPS).

Suspension of one of the principals or employees of a school by a federal agency. Debarment prohibits that person from participating in any FSA program as long as the agency’s procedures include due process protections that are equivalent to those provided by ED.

Office (within Federal Student Aid's Default Division) to which schools refer students who have received an overpayment of Title IV funds for collection.

A measure that compares student indebtedness to earnings and is used to determine whether Title IV program funds can be used to pay for enrollment in gainful employment programs.

The failure to meet any obligation or term of a credit agreement, grant, or contract.

A status that a loan is placed in if the borrower has failed to make a payment when due for the number of days allowed by the applicable regulations, or if the borrower violates other terms and conditions of the promissory note. Borrowers who default on federal education loans lose eligibility for further federal student aid, will have their default reported to national credit bureaus, and may have their wages garnished or tax refunds offset by the government.

A plan that new schools, those with a change of ownership control, and those whose status as a main or branch campus changes must implement. New schools are exempt in certain circumstances. Schools with a cohort default rate ≥ 30% must establish a default prevention task force that prepares a plan that

Office within Federal Student Aid responsible for the management collecting defaulted loans and student overpayments.

A legal defense whereby a borrower asserts that they were too young to enter into an agreement. A borrower may not use a defense of infancy as part of any attempt to refuse to repay Title IV loans. HEA Section 484A(b)(2).

A period during which a borrower is entitled to have payments of principal and interest on federal education loans postponed if he or she meets the eligibility criteria for the deferment. Examples of reasons that entitle a borrower to deferment include enrollment in postsecondary education on at least a half time basis, unemployment, economic hardship, or qualifying active duty military service.

A student enrolled in a course of credit who is recognized by the institution as seeking a degree or certificate.

Action a financial aid administrator may take to change a student's status for federal student aid from dependent to independent (the reverse is not permitted). There must be unusual circumstances to warrant an override, and the FAA must document those circumstances in the student's file.

The student's dependent children and other persons (except the student's spouse) who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year.

Any student who does not qualify as an independent student (see Independent Student). A FAFSA for a dependent student must include parent information.

The student, other dependent children of the student’s parents (whether or not they reside with the parents), including those children who are deemed to be dependent students when applying for Title IV aid, and other persons who live with and receive more than one-half of their support from the parent and will continue to receive more than half of their support from the parent during the award year.

An account at a depository institution described in 12 U.S.C. 461(b)(1)(A), or an account maintained by a foreign institution at a comparable depository institution that meets the requirements of § 668.163(a)(1).

An official of the Department of Education to whom the Department has delegated responsibilities indicated for a certain action.

In the Electronic Data Exchange, the transmitter of FSA data (applications and/or corrections) through the FAA Access to CPS Online interface with EDExpress or through Third-Party software. The results of processing (ISIRs) as well as COD data and reports are transmitted to the destination point through the Student Aid Internet Gateway. This may be a postsecondary school servicing one or more schools or a service agent servicing multiple schools.

The school employee responsible for ensuring secure access to the SAIG (a communication system between the school and ED systems). The DPA is responsible for assigning and providing access via SAIG for other employees of the school.

Departure from prescribed internal control procedures. Often expressed as a rate at which the departure occurs.

Department of Homeland Security

Code on a SAR/ISIR indicating the results of a match with the Department of Homeland Security (DHS). An applicant’s FAFSA is sent to DHS if the applicant indicates on the FAFSA that he or she is an eligible noncitizen.

Code on a SAR/ISIR indicating the results from a secondary match with DHS for an applicant who failed primary confirmation of immigration status.

An entity that

A school affiliated with a hospital or university, or an independent school, which provides primarily or exclusively a two-year program of postsecondary education in professional nursing, leading to the equivalent of a diploma in the United States or to equivalent evidence that the program has been satisfactorily completed.

An instructional program that, in lieu of credit hours or clock hours as a measure of student learning, utilizes direct assessment of student learning, or recognizes the direct assessment of student learning by others. The assessment must be consistent with the accreditation of the institution or program utilizing the results of the assessment.

A Direct Loan created from the outstanding balances of other pre-existing federal education loans.

The cost of resources directly consumed by an activity. Direct costs are assigned to activities by direct tracing of units of resources consumed by individual activities.

Paying FSA funds directly to a student or parent by

A listing of unbooked loans for which COD has not received the elements required for booking. The report also lists MPNs received by COD that do not have an accepted origination record. The report is sent to the school’s SAIG mailbox on a monthly basis (if data for the given month exists for the report). The report is also available via the COD website (cod.ed.gov).

Lists students who have completed entrance counseling, financial awareness counseling, and exit counseling on the StudentAid.gov website. This report is available at cod.ed.gov.

Lists borrowers who are at least 31 days delinquent in their Direct Loan payments. The report gives the most recent contact information for the borrower and can be used in default reduction efforts by helping schools identify and contact borrowers. The Delinquent Borrower Report is available by subscription or on request from the Direct Loan Servicing Center. A report of borrowers delinquent in payment to loan servicers is available through the National Student Loan Data System (NSLDS).

Lists student borrowers for which the COD system has multiple Direct Subsidized Loan/Direct Unsubsidized Loan awards with overlapping academic years within the same award year. Schools should monitor this report and contact other schools involved to verify that the student’s academic and award years are correct in both COD and the schools’ systems. Failure to monitor this report may cause records to reject in COD for going over the annual loan limits. This report is available at cod.ed.gov.

Lists students who have completed exit counseling on the StudentAid.gov website, or students who completed counseling by another means whose information was uploaded by the school to NSLDS. Schools should monitor this report to assist with their default reduction efforts and insure compliance with exit counseling requirements.

This report is available from the NSLDS Professional Access website, in detail and summary versions and online, both as a scheduled report or on demand. Note that although students complete entrance and exit counseling on StudentAid.gov, it is NSLDS that sends exit counseling reports to schools.

Lists MPNs that have expired (become inactive) within the last 30 days. This report is available via at cod.ed.gov and the schools SAIG mailbox.

Lists all the loans a school has reduced to zero ($0) for the reporting period. This report is available at cod.ed.gov and via the school’s SAIG mailbox.

Lists MPNs that have become inactive within the last 30 days due to discharges for death, unauthorized signature, or identity theft. This report is available at cod.ed.gov.

Lists MPNs that will expire (become inactive) within the next 60 days. This report is available at cod.ed.gov.

Informs schools of loans with anticipated disbursement dates (Disbursement Release Indicator [DRI] set to False) on file at COD and the dates of those anticipated/pending disbursements. This report is available at cod.ed.gov.

A loan made under the William D. Ford Federal Direct Loan Program.

A file that can used to rebuild a lost or corrupted Direct Loan Database, or recreate specific student records. School mays request this file at cod.ed.gov.

Any of the repayment plans under which Direct Loan borrowers can repay their loans. Available repayment plans are the Standard, Graduated, Extended, Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR) plans. Parent Direct PLUS Loan borrowers may only choose from the Standard, Graduated, and Extended plans.

A COD-generated statement, created monthly (comparable to a bank statement), that summarizes a school’s processing activity for the month. The SAS provides the Department’s official ending cash balance from records submitted by the school. A school will receive this report on a monthly basis until the Department has officially closed the school’s activity for a program year. This report is available via the school’s SAIG mailbox.

A multi-year Windows-based application available at fsadownload.ed.gov that schools can use to

The portion of a Direct Consolidation Loan made before July 1, 2006 attributable to Direct PLUS Loans, Direct PLUS Consolidation Loans, Federal PLUS Loans, and Parent Loans for Undergraduate Students that were repaid by the consolidation loan. The borrower is responsible for the interest that accrues during all periods.

A loan made under the Federal Direct PLUS Program.

The portion of a Direct Consolidation Loan attributable to certain subsidized Title IV education loans that were repaid by the consolidation loan. Interest is not charged to the borrower during deferment periods or, for a borrower whose consolidation application was received before July 1, 2006, during in-school and grace periods.

A loan made under the Federal Direct Stafford/Ford Loan Program.

The portion of a Direct Consolidation Loan attributable to unsubsidized Title IV education loans, certain subsidized Title IV education loans, and certain other federal education loans that were repaid by the consolidation loan. The borrower is generally responsible for the interest that accrues during all periods.

A loan made under the Federal Direct Unsubsidized Stafford Ford Loan Program.

Costs Charges to a Federal award that the Federal awarding agency or pass-through entity determines to be unallowable, in accordance with the applicable Federal statutes, regulations, or the terms and conditions of the Federal award.

The crediting of a student's account or paying a student or parent directly with

An electronic record sent from a school to COD notifying the Department when a Pell, TEACH Grant, or Direct Loan disbursement will be or has been made to a student.

A "tag" on the Common Record that designates a record as an Actual Disbursement Record. It signals the COD System to post the amount of disbursement to an award (loan/grant).

Cancellation of the balance due on a federal education loan. Reasons for discharge of a loan include the borrower’s death (or the death of the student on whose behalf a parent obtained a Direct PLUS Loan or Federal PLUS Loan), the borrower’s total and permanent disability (as defined in the Department’s regulations), school closure, and certain other conditions as specified in the Department’s regulations.

See Loan Disclosure Statement.

Information that postsecondary institutions must make available to students and the public generally, such as information about their academic programs, costs, withdrawal procedures, refunds, accreditation, athletic programs, crime and safety, etc.

The difference between the estimated worth of a future benefit and its present value; a compensation for waiting or an allowance for returns from using the present value of these returns in other ways.

Program for which outlays are controlled by annual appropriation acts. Annual appropriation acts are required to fund the continuing operation of all federal programs that are not "mandatory" (compare to Entitlement Programs).

That part of an individual's compensation from an employer and other income from any source, including spousal income, that remains after the deduction of any amounts required by law to be withheld, or any child support or alimony payments that are made under a court order or legally enforceable written agreement. Amounts required by law to be withheld include, but are not limited to, federal, state, and local taxes, Social Security contributions, and wage garnishment payments.

A motion asking for a court order that entirely disposes of one or more claims in favor of the party who files the dispositive motion without the need for further court proceedings.

Training that uses one or more of the technologies below to deliver instruction to students who are separated from the instructor and to support regular and substantive interaction between the students and the instructor, either synchronously or asynchronously. The technologies may include

A capital distribution of the balance of an institution’s Perkins Loan Revolving Fund (Perkins Fund). The Distribution of Assets from the Perkins Loan Revolving Fund process replaces the existing Excess Liquid Capital process as part of the wind-down of the Federal Perkins Loan Program.

Direct Loan

Direct Loan Consolidation

Deposit Message Retrieval System (Treasury Department)

Date of Birth

A written explanation that describes a topic so that an independent third party can understand it. Documentation includes explanations of program mission and functions, component control techniques, summary of the steps taken in conducting an internal control review, and the operation of a financial system.

Department of Defense

The result on a SAR/ISIR from the match with the Department of Defense (DoD) to determine if the applicant's parent was a member of the armed forces who died as a result of service in Iraq or Afghanistan after September 11, 2001.

Department of Justice

A felony or misdemeanor crime of violence committed by

Destination Point Administrator

The rate the Department issues for review before issuing an official cohort default rate. A draft cohort default rate is used only for the purposes described in 34 CFR 668.185.

Default Reduction Assistance Program

A school's request for and subsequent transmission of funds to the school via G5. A drawdown occurs when a school (or COD) initiates a request for funds through G5, and the funds are transmitted from the U.S. Department of the Treasury to the school's bank account.

An adjustment made in G5, where a drawdown is moved from one award year to another award year. This usually is done to correct an error (mistakenly requesting funds from the wrong award year, or to change the amount of the request before the funds are received by the school).

Disbursement Release Indicator

Data Release Number

Disaster Recovery Plan

Data Retrieval Tool

A legal judgment that bars an applicant from receiving certain federal benefits, including Title IV aid, due to a federal or state conviction for drug possession or trafficking. The Central Processing System (CPS) maintains a file of individuals who have received a drug abuse hold, and all applicants are checked against this list.

Defense Technical Information Center

The use of extensive persistent procedures for servicing and collecting student loans. Also the full and timely disclosure to student borrowers of their rights and obligations.

This flag on a SAR/ISIR is set to "Yes" if another record was found in the CPS database with the same SSN but a different last name.

Electronic Application to Participate (in the Federal Student Aid Programs)

Electronic Signatures in Global and National Commerce Act

A website hosting Federal Student Aid instructional courses and webinars on all aspects of administering the Title IV programs.

Enterprise Architecture

Electronic Announcement

A disbursement of federal student aid made to a student up to 10 days before the first day of classes for a payment period or period of enrollment, as applicable.

Those services defined in section 632(4) of the Individuals with Disabilities Education Act that are provided to infants and toddlers with disabilities.

In cash accounting, an item is "earned" and reported as revenue when cash is received. Under accrual accounting an item has been "earned" and is reported as revenue when a service has been performed or product delivered, not when cash is received.

Eligibility and Certification Approval Report

Electronic Campus-Based System

Electronic Cohort Default Rate

Electronic Code of Federal Regulations

United States Department of Education

Education Central Automated Processing System

Electronic Data Exchange

A PC application that processes, packages, and manages FSA records. FSA provides EDExpress free of charge to postsecondary schools that participate in its Electronic Data Exchange (EDE) process.

Education Department General Administrative Regulations

These codes communicate unique messages from the COD System when a school's reported student data is found to be in error or inconsistent with related data.

In the COD process, a record sent with anticipated disbursement information for editing purposes only. Edit Only Records may originate an award, but are not intended to request or report funds. Schools using the Common Record submit a record with the Disbursement Release Indicator set to False.

Electronic Data Processing

Department of Education Federal Student Aid Network

Department of Education system that integrates the Department's financial processes, including financial management, contracts and purchasing, grants administration, and payment management. EDCAPS integrates four formerly separate system modules into a single system consisting of

Any of the following:

A legally authorized postsecondary program of organized instruction or study that leads to an academic, professional, or vocational degree, or certificate, or other recognized educational credential, or is a comprehensive transition and postsecondary program.

A regional public multi-service agency authorized by state law to develop, manage, and provide services or programs to local educational agencies as defined in section 9101 of the Elementary and Secondary Education Act of 1965, as amended.

Employee Enterprise Business Collaboration

Estimated Financial Assistance

Expected Family Contribution

Reasonable assurance that operational objectives are achieved, that published financial statements are reliably prepared, and that the entity complies with applicable laws and regulations.

Electronic Funds Transfer (see also ACH/EFT)

Earned Income Credit

Employer Identification Number

An electronic exchange system between the central processor and an institution under which

A file sent by a school to the Common Origination and Disbursement (COD) system containing a request for information. A school can receive reconciliation files, multiple reporting records, year-to-date (YTD) data, electronic statements of account (ESOA) data, Potential Overaward Process (POP) reports, and/ or verification status reports.

A transaction initiated electronically instructing the crediting or debiting of a financial account, or an institution's depository account. For purposes of transactions initiated by the Department, the term ''EFT'' includes all transactions covered by 31 CFR 208.2(f). For purposes of transactions initiated by or on behalf of an institution, the term ''EFT'' includes, from among the transactions covered by 31 CFR 208.2(f), only Automated Clearinghouse transactions.

Generic term describing any transfer of funds between parties or depository institutions through electronic data systems.

The connections that schools are required to make to various Department websites (e.g., the COD website) to be in compliance with administrative capability requirements.

Enacted on June 30, 2000, the E-Sign Act provides, in part, that a signature, contract or other record relating to a transaction may not be denied legal effect, validity or enforceability solely because it is in electronic form, or because an electronic signature or electronic record was used in its formation. Voluntary consent to participate in electronic transactions is required for all financial information provided or made available to student loan borrowers, and for all notices and authorizations to FSA recipients required under 34 CFR 668.165.

An official statement from the Department that sets a school’s authorization level for the upcoming award year and projects adjustments to the school’s FSA program funding needs. It summarizes the status of a school’s Current Funding Level (CFL) as it compares to the net drawdowns for the award year. An ESOA also details the amount expended to date. ESOAs are produced for the Federal Pell Grant Program. The Department produces an ESOA whenever there is an adjustment to a school’s current FSA program authorization.

A nonprofit institutional day or residential school, including a public elementary charter school, that provides elementary education, as determined under State law.

A summary of an institution’s eligibility/certification information (Title IV program participation, institution’s accreditor, state authorization, staff, additional locations and eligible vocational programs).

A percentage calculated by summing all of the accepted actual disbursement records for a student at the attended institution in an award year and dividing that amount by the Scheduled Federal Pell Grant Award at the attended institution.

A student in an approved course of study who has submitted a Free Application for Federal Student Aid (FAFSA) and meets the eligibility requirements for Title IV financial aid. The student must be currently enrolled or be a prospective student at a postsecondary school which is eligible to participate in the Title IV programs.

A program that—

An institution that qualifies as

An immigration status that meets the requirements of 34 CFR 668.33(a)(2). That is, a student who is not a U.S. citizen, but is still potentially eligible to receive at least one type of Title IV aid. Types of eligible noncitizens include: lawful permanent residents, conditional resident aliens, refugees, persons granted asylum, persons paroled into the U.S. for at least one year, Cuban-Haitian entrants, conditional entrants, victims of human trafficking, battered immigrants-qualified aliens, students of the Freely Associated States, and Jay treaty students. Not all types of eligible noncitizen are eligible to receive all types of Title IV aid.

A school that chooses to establish eligibility for the FSA programs but not to participate in them. Designation as an eligible institution qualifies a school or its students to take advantage of non-FSA programs or benefits, such as the American Opportunity and Lifetime Learning tax credits and qualifies its students for deferments of federal student loans.

An educational program that is provided by a participating institution and meets the requirements in 34 CFR 668.8(c) and (d) for participating in the FSA programs. For a detailed explanation of an Eligible Program see the Higher Education Act, as amended, Part F, Section 481(b).

A student who meets the eligibility requirements in section 484 of Part G of the Higher Education Act of 1965, as amended, and in Subpart C of 34 CFR Part 668 (34 CFR 668.31 through 34 CFR 668.40).

A person who has not reached the age of majority but is released from control of his or her parent or guardian, as adjudicated by a court of competent jurisdiction in the state of the student's legal residence at the time of the adjudication.

Action taken by the Department to suspend a school's or third-party's participation in the Title IV programs if the Department:

The procedures a school must develop for emergency response and evacuation and of which it must include a description in its annual security report to the campus community. A school must develop procedures to immediately notify the campus community upon the confirmation of a significant emergency or dangerous situation involving an immediate threat to the health or safety of students or employees occurring on the campus.

Identifying number issued by the IRS to businesses for tax filing purposes. The EIN preceded by the letters “ED” is the password for accessing the Electronic Application (e-App) that schools use to apply for and update institutional FSA eligibility.

Electronic Master Promissory Note

An individual who agrees to repay a Direct PLUS Loan if the borrower does not repay the loan. Federal PLUS Loans previously made under the FFEL Program may also have endorsers.

Usually a permanently restricted asset for which the principal portion must be retained indefinitely. The earnings from an endowed fund could be unrestricted or temporarily restricted.

The process of acquiring English as a second language.

The status of a student who has

The earliest date a student was enrolled in an eligible program for the designated award year.

The process used by schools to report student enrollment data to the Department. Enrollment reporting can occur online in real time, or through file exchange using SAIG.

A webpage that displays information about the school for the enrollment reporting process. The page displays the set up for organizations that report or receive enrollment status information about students receiving federal student aid. The Profile includes file preferences, administrator relationships for school locations sharing the same OPEID, and the reporting schedule one year into the future and six months into the past.

The 8 digit code (Office of Postsecondary Education Identification Number {OPE ID}) for the physical location where the student is attending classes that is reported in the COD disbursement record to ensure a student is listed on the correct NSLDS Enrollment Roster.

Full-time, three-quarter-time, half-time, or less-than-half-time, depending on a student's credit-hour work load per academic term, at an institution using semesters, trimesters, quarters, or other academic terms and measuring progress by credit hours. All levels are relative to full time. At an institution using clock hours, 24 hours a week is full time and 12 hours a week is half-time.

A program in which the federal government becomes automatically obligated to provide benefits to members of a specific group who meet the requirements mandated by law. Programs for which outlays are not controlled by annual appropriation acts (compare to Discretionary Program).

On the Common Record, the unique routing identifier for each data exchange partner (e.g., school, third-party servicer, vendor, etc.). When performing entity searches via COD website, the Entity ID is the school's COD identifier, Pell ID, Direct Loan ID or OPE ID.

Information about loan terms and conditions, along with debt management strategies, that first-time student borrowers are required to receive before they may receive their first Direct Loan disbursement. Entrance Counseling is available on StudentAid.gov.

Tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000.

A measure of a school's capital resources and its ability to borrow, used when calculating the composite score. The equity ratio is expressed as a fraction with the modified equity as the numerator and the modified expenses as the denominator.

An associate degree, or the successful completion of at least a two-year program that is acceptable for full credit toward a bachelor's degree and qualifies a student for admission into the third year of a bachelor's degree program.

Employee Retirement Income Security Act of 1974 (29 U.S.C. 1301-1461

Electronic Student Aid Report

The reversion of funds to an unintended Third-Party, (e.g., when a FSA credit balance check to a student is not cashed, and the funds remain in the school's account or are transferred to the state's escheatment account). Schools must have a process to ensure that FSA program funds never escheat to the state or any other third party.

Experimental Sites Initiative authorized by Section 487A of the Higher Education Act.

English as Second Language

English as a Second Language program. Students enrolled in a program consisting solely of ESL instruction are eligible for FSA funds only from the Pell Grant program.

Electronic Statement of Account

Funds that must be considered during the Title IV aid packaging process. EFA includes aid received from Title IV programs (exception: Iraq & Afghanistan Service Grant), as well all other as grants, scholarships, loans and need-based employment that can be anticipated at the time a school is packaging aid for a student. The student's packaged Title IV aid plus EFA may not exceed a student's need.

Any amount of federal student aid funds, other than Federal Perkins Loan Program funds, that an institution does not disburse to students or parents by the end of the third business day following the date the institution

Available on StudentAid.gov, it provides information about loan terms and conditions, with emphasis on repayment requirements and debt management strategies, that each school participating in the federal education loan programs must ensure is provided to student borrowers. For Direct Loan and FFEL student borrowers, the counseling must take place shortly before the borrower ceases to be enrolled at least half time, or as soon as possible after the school becomes aware that the borrower is no longer enrolled half time. For Perkins Loan borrowers, the counseling must take place before the borrower leaves school, or as soon as possible after the school becomes aware that the borrower is no longer attending classes.

The amount a student and the student's family may be reasonably expected to contribute toward the student's postsecondary education for the academic year.

Fast-track versions of the preliminary report and final determination letter to the institution regarding findings identified during a program review. Used only under conditions described in the procedures.

Appropriation accounts in which the balances are no longer available for incurring new obligations because the time available for incurring such obligations has passed.

The Direct Loan Program provides relief from close-out processing deadlines for extenuating circumstances. An institution may request extended processing if it is unable to meet the processing deadline (also known as Closeout Deadline). The Department grants extended processing due to either an event such as a natural disaster, or a processing error.

The Federal Pell Grant Program provides relief from processing deadlines in extenuating circumstances. A school may request administrative relief when it is unable to meet the September 30th deadline for submitting records, due to either an event, such as a natural disaster, or a processing error.

A web application designed by the U.S. Department of Education that provides schools with a paperless, single point of submission, for financial statements and compliance audits required by Title IV participants.

Facilities and Administration

Financial Aid Administrator

A website that financial aid administrators use to enter application data, view ISIR information, and make corrections. It is located at fafsa.ed.gov/FOTWWebApp/faa/faa.jsp.

Federal Audit Clearinghouse

An educator or tenured individual who is employed by a Tribal College or University, as that term is defined in section 316 of the HEA, to teach, research, or perform administrative functions. For purposes of this definition, an educator may be an instructor, lecturer, lab faculty, assistant professor, associate professor, full professor, dean, or academic department head.

Final Audit Determination Letter

See Free Application for Federal Student Aid

The online version of the FAFSA and the website where it is accessed.

The data entry processor for a processing year under contract with the U.S. Department of Education. The FAFSA processor receives paper applications, paper SAR corrections, and paper signature pages in the mail, performs document analysis to ensure that the data is acceptable, and handles missing or unacceptable responses. The processor images the application, enters the information from the application, and transmits the data and image electronically to the CPS.

A condition wherein a male student knowingly and willingly failed to register for the Selective Service before his 26th birthday.

Federal Award Identification Number

The amount at which an asset or liability could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

A parent, sibling, spouse, child, spouse’s parent or sibling, child’s or sibling’s spouse.

The law that sets limits on the disclosure of personally identifiable information from school records and defines the rights of the student to review the records and request a change to the records. FERPA generally gives postsecondary students the right to

Also known as household size. The number of persons in the household of an independent student or a dependent student’s parents. In general it includes an independent student and his or her spouse (if there is one) and their dependents or, in the case of dependent students, the parents, their dependents, and the student. See the explanation of household size in Chapter 2 of the Application and Verification Guide for complete details.

Financial Aid Office (also, Officer)

Federal Awardee Performance and Integrity Information System

Federal Acquisition Regulation

Financial Accounting Standards Board

Family Contribution

Federal Capital Contribution (Perkins)

Federal Deposit Insurance Corporation

The William D. Ford Federal Direct Student Loan Program

Federal Enterprise Architecture

Group authorized by the accounting profession to establish generally accepted accounting principles (GAAP) applicable to federal government entities.

The clearinghouse designated by OMB as the repository of record where non-Federal entities are required to transmit required reporting packages.

In the Perkins Loan Program, federal funds allocated or reallocated to an institution in an award year for deposit into the institution's federal funds account under section 462 of the HEA.

One of the components of the Direct Loan Program. Loans made under this program are referred to as Direct Consolidation Loans and provide loans to borrowers who consolidate certain federal educational loans.

A component of the Federal Direct Loan Program. It provides loans to parents of dependent students and to graduate or professional students. Direct PLUS Loan borrowers are generally responsible for the interest that accrues during all periods. Loans made under this program are referred to as Direct PLUS Loans.

One of the components of the Direct Loan Program. It provides loans to undergraduate students attending schools that participate in the Direct Loan Program. The Department generally subsidizes the interest while the borrower is in an in-school, grace, or deferment period. Loans made under this program are referred to as Direct Subsidized Loans.

One of the components of the Direct Loan Program. It provides loans to undergraduate, graduate, and professional students attending schools that participate in the Direct Loan Program. The borrower is responsible for the interest that accrues during any period. Loans made under this program are referred to as Direct Unsubsidized Loans. One of the components of the Direct Loan Program. It provides loans to undergraduate, graduate, and professional students attending schools that participate in the Direct Loan Program. The borrower is generally responsible for the interest that accrues during all periods. Loans made under this program are referred to as Direct Unsubsidized Loans.

This former loan program included the Federal Stafford Loan, Federal PLUS, Federal Supplemental Loans for Students (Federal SLS), and Federal Consolidation Loan programs. Lenders used their own funds to make loans to enable students or their parents to pay the costs of the students’ attendance at eligible institutions. The statutory authority for lenders to make new loans under the FFEL Program ended as of July 1, 2010.

Legislation that defines a comprehensive framework to protect government information, operations and assets against natural or man-made threats. FISMA was signed into law part of the Electronic Government Act of 2002 and updated in 2014.

Except for funds provided by the Department for administrative expenses, and for funds used for the Job Location and Development Program under subpart B of the FWS regulations, funds received by an institution under the title IV, HEA programs are held in trust for the intended beneficiaries or the Secretary. The institution, as a trustee of those funds, may not use or hypothecate (i.e., use as collateral) the funds for any other purpose or otherwise engage in any practice that risks the loss of those funds.

A grant program authorized by the HEA under which grants are awarded to help financially needy students meet the cost of their postsecondary education.

The former Federal Perkins Loan Program included loans made under the National Direct Student Loan Program and the National Defense Student Loan Program. This Campus-Based Program provided low-interest loans to financially needy students attending institutions of higher education to help them pay their educational costs. The authority for institutions to make new Federal Perkins Loans ended effective September 30, 2017.

A defender organization established in accordance with section 3006A(g)(2)(A) of title 18, United States Code.

The daily journal of the U.S. federal government. It contains notices, proposed and final regulations, and presidential documents. Regulations first appear in the register and, when final, are incorporated in the Code of Federal Regulations.

A nationwide system for clearing and settling checks drawn on depository institutions located in all regions of the United States.

The percentage of a school's annual expenditures in the Campus-Based Programs paid in an award year from a school's current authorization or from federal funds carried forward or back.

The office within the U. S. Department of Education that manages the Federal Student Aid Programs.

Programs authorized under Title IV of the Higher Education Act (as amended) that provide financial assistance to eligible students enrolled in postsecondary educational programs.

Web-based management assessment modules for helping schools assess their compliance with FSA program requirements and enhance services. Each assessment is self-guided and contains links to applicable laws and regulations. Available at fsapartners.ed.gov.

A comprehensive, online introductory course on school requirements for administering the FSA programs. A version for foreign schools, FSA COACH for Foreign Schools contains lessons designed specifically for those working at foreign schools who administer FSA loans. Available at https://fsatraining.ed.gov/.

Annual Department publication that explains the requirements for participation in the FSA programs.

Serves the public by providing information, in both English and Spanish, about the FSA programs and the application process. Customers include students, parents, and financial aid administrators seeking general information about federal grant and loan programs and specific assistance with the FAFSA. 800/4-FED-AID (800-433-3243); 334-523-2691; TDD/TTY 800-730-8913 for the deaf or hearing impaired.

A national training conference, hosted by FSA, held every year in November/December.

The Campus-Based Program that provides grants to eligible students who demonstrate exceptional financial need.

A Campus-Based Title IV program that provides part-time employment to students attending institutions of higher education who need the earnings to help meet their costs of postsecondary education and encourages students receiving FWS assistance to participate in community service activities.

The Federal Reserve Bank's nationwide real time gross settlement electronic funds and securities transfer network. Fedwire® is a credit transfer system. Each funds transfer is settled individually against an institution's reserve or clearing account on the books of the Federal Reserve. The transaction is considered an irrevocable payment when processed.

Family Education Rights and Privacy Act

Federal Funding Accountability and Transparency Act of 2006 or Transparency Act—Public Law 109-282, as amended by section 6202(a) of Public Law 110-252 (31 U.S.C. 6101).

Federal Insurance Contributions Act.

Relating to the collection or receipt, management, protection, accounting, investment and disposition of cash or other assets in which federal student aid recipients and the federal government have an ownership interest.

An entity that holds assets in trust. A school holds federal student aid funds in trust for recipients and the federal government.

An activity that relates to the collection or receipt, management, protection, accounting, investment and disposition by a school of cash or other assets in which federal student aid recipients and the federal government have an ownership interest that the school must uphold.

A fiduciary relationship exists when a school recognizes, agrees to, or consents to undertake fiduciary activity. Participating institutions have a fiduciary responsibility to ensure federal student aid funds are used as intended.

The written notice of a determination issued by a designated Department official based on an audit of

A letter that a lender sends to a borrower demanding full payment of a delinquent account. A demand letter is required as part of the due diligence procedures for collecting a loan that is about to go into default or a loan made to an ineligible student.

An electronic notification that tells a school the final allocations for each Campus-Based program in which it participates.

Document containing the data used by the Department to determine a school's allocation for each Campus-Based Program in which the school participates and how each final allocation was determined.

The letter from the Department that follows an institution's response to the Program Review Report (PRR). The FPRD informs the institution of ED's final determination regarding each of the findings in the PRR and identifies liabilities, if any; provides instructions for payment of liabilities; notifies the institution of its right to appeal the existence of and amount of liabilities; and closes the program review if appropriate.

Final regulations published in the Federal Register with a scheduled effective date. A Final Rule is generally preceded by a Notice of Proposed Rulemaking (NPRM) containing draft proposed regulations for public comment. The final regulations may incorporate changes made in response to public comments on the NPRM.

A student's or parent's checking or savings account, prepaid card account, or other consumer asset account held directly or indirectly by a financial institution.

Independent, private, non-government group which is authorized by the accounting profession to establish generally accepted accounting principles in the United States.

In EDExpress, FAA Access to CPS Online is available from the "View" menu and from the FAFSA and Student Inquiry tabs. FAAs can use the site to access saved applications, submit FAFSAs, make corrections, request Institutional Student Information Records (ISIRs), compare ISIRs, verify ISIR data, apply a student signature, and check the processing status of student records. compare ISIRs, verify ISIR data, apply a student signature, and check the processing status of student records.

A process through which a student appeals a negative finding on his or her Satisfactory Academic Progress (SAP) status. A student's right to appeals is granted at the option of the school. If the school agrees to consider the appeal, the school may place the student on financial aid probation in the interim. See Satisfactory Academic Progress.

This system is the general ledger for FSA. FMS works with G5 to communicate financial information and to deliver federal cash to schools.

Transmitted to student aid applicants, a summary of available student aid which an applicant may expect to receive. May be sent via a paper award letter or other electronic means such as email. Schools must fulfill the consumer information requirements, as described in Volume 2, Chapter 6.

The total student assistance —loans, grants, scholarships, and need-based employment—offered to a student.

A status under which a student can remain Title IV-eligible after being found not to be making Satisfactory Academic Progress (SAP). A student placed on probation must either be on-track to meet SAP requirements by the end of the subsequent payment period (no academic plan required, based on the financial aid appeal), or, if the student will require more than one payment period to meet SAP requirements, the school must require the student to develop an academic plan to meet the SAP requirements. This status is available only when a school permits an appeal. The student’s progress towards meeting the SAP requirements must be assessed after each payment period, and the student may retain Title IV eligibility as long as they are meeting the progress requirements of their academic plan.

A temporary, one payment-period status which allows a student who failed to achieve Satisfactory Academic Progress (SAP) to continue receiving aid. Failing to achieve SAP after one payment period results in a loss of eligibility. Students may, at the option of the school, appeal their SAP status. This status may only be used by schools that check SAP at the end of each payment period.

A bank, savings association, credit union, or any other person or entity that directly or indirectly holds a financial account belonging to a student or parent that issues an access device associated with a financial account and agrees with a student or parent to provide EFT services.

An eligible student’s cost of attendance (COA) minus expected family contribution (EFC) minus estimated financial assistance (EFA).

The main financial statements (income statement, balance sheet, statement of cash flows, statement of retained earnings, statement of owner's equity) plus other financial information, such as annual reports, press releases, etc.

The obligation for a school to

The financial responsibility standards (34 CFR 668 Subpart L) can be divided into two categories: (1) general standards, which are the basic standards used to evaluate a school's financial health, and (2) performance and affiliation standards, which are standards used to evaluate a school's past performance and to evaluate individuals affiliated with the school.

The presentation of financial data, including accompanying notes derived from accounting records and intended to communicate an entity's economic resources or obligations at a point in time, or the changes therein for a period of time, in accordance with a comprehensive basis of accounting.

An opinion that the financial statements present fairly, in all material respects, the financial position of the company as of the balance sheet date and the results of its operations and its cash flows for the period then ended in conformity with the applicable financial reporting framework. The opinion also includes an identification of the applicable financial reporting framework.

Any instance of open flame or other burning in a place not intended to contain the burning or in an uncontrolled manner.

A supervised practice of a mandatory evacuation of a building for a fire.

Any mechanism or system related to the detection of a fire, the warning resulting from a fire, or the control of a fire. This may include sprinkler systems or other fire extinguishing systems, fire detection devices, stand-alone smoke alarms, devices that alert one to the presence of a fire, such as horns, bells, or strobe lights; smoke-control and reduction mechanisms; and fire doors and walls that reduce the spread of a fire.

Any instance in which a person is killed as a result of a fire, including death resulting from a natural or accidental cause while involved in fire control, attempting rescue, or escaping from the dangers of a fire; or dies within one year of injuries sustained as a result of the fire.

Any instance in which a person is injured as a result of a fire, including an injury sustained from a natural or accidental cause, while involved in fire control, attempting rescue, or escaping from the dangers of the fire. The term "person" may include students, employees, visitors, firefighters, or any other individuals.

A firefighter is an individual who is employed by a federal, state, or local fire fighting agency to extinguish destructive fires; or provide fire fighting related services such as

For purposes of determining whether a student must complete entrance counseling before receiving the first disbursement of a Direct Subsidized Loan or Direct Unsubsidized Loan, an individual who has not received a prior Direct Subsidized Loan, Direct Unsubsidized Loan, Subsidized or Unsubsidized Federal Stafford Loan, or Federal SLS Loan.

For purpose of determining whether a graduate or professional student must complete entrance counseling before receiving the first disbursement of a Direct PLUS Loan, an individual who has not received a prior student Direct PLUS Loan or Federal PLUS Loan.

For purposes of determining whether a Direct Subsidized Loan borrower is subject to the 150% limit on Direct Subsidized Loan eligibility, an individual who has no outstanding balance of principal or interest on a Direct Loan Program or FFEL Program loan on July 1, 2013, or on the date the borrower obtains a Direct Loan Program loan after July 1, 2013.

An entering undergraduate who has never attended any institution of higher education. It includes a student enrolled in the fall term who attended a postsecondary institution for the first time in the prior summer term, and a student who entered with advanced standing (college credit earned before graduation from high school).

Fiscal Operations Report and Application to Participate

A reference document that provides programmer specifications and record layouts for schools or other organizations needing to design customer software systems to interface with the Department's FISAP on the Web process.

Parts III, IV, V, and VI of the FISAP on which schools report on their activities in the Campus-Based Programs. Sometimes referred to as the FISOP.

Electronic application through which schools provide information on Campus-Based expenditures made during the award year just completed, and the apply for funds in the Campus-Based Pro¬grams in the upcoming award year.

Financial records that reflect each federal student aid program transaction; and general ledger control accounts and related subsidiary accounts that identify each federal student aid program transaction, and separate those transactions from all other institutional financial activity, including the records specified in 34 CFR 668.24(c).

An accounting year that ends on a date other than December 31. For example, a school district might have a fiscal year of July 1, 2020 through June 30, 2021.

Federal Information Security Management Act

A cost that does not vary in the short term with the volume of activity.

An interest rate on a loan that remains the same for the entire term of the loan.

Federal Managers' Financial Integrity Act of 1982

Financial Management System

Freedom of Information Act

A period during which a borrower may temporarily stop making loan payments, temporarily make smaller payments, or extend the time for making payments. A borrower who does not meet the eligibility requirements for a deferment may, at the discretion of the loan holder, receive a forbearance if the borrower is temporarily unable to make loan payments for reasons including, but not limited to, financial hardship or illness. Borrowers are also entitled to receive forbearance if they meet certain regulatory eligibility criteria.

A temporary postponement of payments. In the Perkins Program forbearance is available for all loans, regardless of when they were made. Under Perkins forbearance, a borrower may alternatively request an extension of time allowed for making payments, or the acceptance of smaller payments than were previously scheduled.

A method of enforcing payment of a debt secured by a mortgage by seizing the mortgaged property. Foreclosure terminates all rights that the mortgagor has in the mortgaged property upon completion of due process through the courts.

Any gift of money or property from a foreign source. See Volume 2 for guidance on when schools are required to report foreign gifts to the Department.

An entity that is

A school not located in a State. For Title IV purposes, a State includes a State of the Union, American Samoa, the Commonwealth of Puerto Rico, the District of Columbia, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. Foreign schools may apply to participate in the Direct Loan Program, but they are not eligible to participate in any of the other Title IV federal student aid programs.

A foreign source is

In the Direct Loan and FFEL programs, cancellation of a loan debt in exchange for the borrower performing certain types of service.

FAFSA on the Web

Dear Colleague Letter designation for financial partners (published before January 2013)

Federal Perkins Loan Program

Final Program Review Determination (L letter)

Federal Register

Federal Reserve Bank

Federal Reserve Communications System

The student aid application provided for under section 483 of the HEA, which is used to determine an applicant's eligibility for the federal student aid programs. See Student Aid Application.

The Freely Associated States are comprised of the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. Students from one of the Freely Associated States are eligible noncitizens who are potentially eligible for certain types of Title IV aid. See Volume 1 for details.

A period during which a school is temporarily prevented from drawing down cash until unsubstantiated cash previously drawn down is substantiated by submitting actual disbursements. Pertains to schools using the Advance Payment funding method.

Financial Services (in the U.S. Department of Education)

Federal Student Aid, an office of the Department of Education

Federal Student Aid website from which schools can download manuals, technical references, guides, software and associated documents.

A username and password combination that serves as a student's or parent's identifier, allows access to personal information in various Department systems, and acts as a digital signature on some online forms.

Federal Student Aid Handbook

Federal Student Aid Information Center

An e-mail listserv through which schools can ask technical questions about Federal Student Aid systems, software, and mainframe products. Answers are provided by technical experts at FSA. For more information on subscribing to FSATECH, go to ed.gov/offices/OSFAP/services/fsatechsubscribe.html.

Federal Supplemental Educational Opportunity Grant Program

An enrolled student who is carrying a full-time academic workload, as determined by the institution. For undergraduates, full-time status must be at least:

Full-time Equivalent

An enrolled student carrying a full-time academic workload, as determined by the institution, under a standard applicable to all students enrolled in a particular educational program. The student’s workload may include any combination of courses, work, research, or special studies that the institution considers sufficient to classify the student as a full-time student. For a term-based program, the student’s workload may include repeating any coursework previously taken in the program but may not include more than one repetition of a previously passed course. There are individual minimum standards for programs

(For additional details see 34 CFR 668.2.)

A teacher who meets the standard used by a state in defining full-time employment as a teacher. For an individual teaching in more than one school, the determination of full-time is based on the combination of all qualifying employment.

A fund established and maintained according to § 674.8(a).

One of the ways a school can match its federal allocation in the FSEOG Program. In this approach, the school establishes an FSEOG account for federal program funds and deposits the required 25% qualified nonfederal matching share into the fund. The matching funds must be deposited at the same time the federal funds are deposited. Awards to FSEOG recipients are then made from this mixed fund. Schools using the fund-specific method must deposit their institutional match at the time they receive the federal share funds.

In the Campus-Based Programs, the principal that the amount available for awards is the federal share, plus the institutional match, minus the applicable Administrative Cost Allowance.

Federal Work-Study Program

Fiscal Year

Dear Colleague Letter designation for guaranty agency letters (published before January 2013)

This form is completed by the FAA and sent to the Department of Homeland Security (DHS) with a student’s eligible noncitizen documentation to support a claim of being an eligible noncitizen for Title IV purposes, after primary and secondary electronic verification has failed. The G-845 can only be used after primary and secondary confirmation with DHS has been performed

Formerly known as GAPS, this system is used by Federal Student Aid to process school-specific obligations and to make payments (drawdowns) against those obligations. G5 communicates with the COD system through FMS. G5 is part of EDCAPS and interfaces directly with U.S. Treasury's Federal Reserve System. G5 is the system through which schools request and return Federal Student Aid funds.

A statement for a school's G5 awards that displays both cumulative and detailed information on drawdown activity, refunds, adjustments, available balances, and authorization changes for each award.

The Department's call center that is responsible for assisting G5 customers. The hotline phone number is 888-336-8930, the email address is [email protected].

An online guide for the G5 system to assist Department staff, applicants and recipients with G5 regarding the grant management and payment activities and other operational activities of G5.

Guaranty Agency

Generally Accepted Accounting Principles

Generally Accepted Auditing Standards

Generally Accepted Government Auditing Standards

All nondegree educational programs offered by public and nonprofit institutions and virtually all academic programs offered by proprietary institutions of higher education. These programs prepare students for "gainful employment in a recognized occupation."

Grant Award Number

Government Accountability Office (formerly General Accounting Office)

The withholding of an individual's funds by an entity for the payment of a debt in accordance with a court order or other legal or equitable procedure. No FSA grant, loan, or work assistance (or property traceable to that assistance) is subject to garnishment or attachment except to satisfy a debt owed to the Department.

Government Auditing Standards

Governmental Accounting Standards Board

Gainful Employment

Gaining Early Awareness and Readiness for Undergraduates Program

General Education Development certificate or General Equivalency Diploma. Equivalent of a high school diploma.

Dear Colleague Letter designation for general letters

Accounts for receipts not earmarked by law for a specific purpose.

A book of original entry that requires that the account being debited and the account being credited be listed along with the respective amounts. Because of accounting software and special journals there are relatively few entries made into the general journal.

That part of the accounting system which contains the balance sheet and income statement accounts used for recording transactions.

Uniform minimum standards of and guidelines to financial accounting and reporting. Currently, the Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), and the Federal Accounting Standards Advisory Board (FASAB) are authorized to establish these principles.

Standards governing the conduct of external audits by CPAs, as determined by the Auditing Standards Board (ASB) of the AICPA.

Financial assistance, such as grants and scholarships, that do not need to be repaid.

Government owned, contractor operated

The accounting guideline that allows the readers of financial statements to assume that the organization being audited will continue in operation long enough to realize its investment in assets through operations (as opposed to sale). An audit statement must note an opinion if the accountant performing the audit believes that the assumption is in doubt.

Independent, non-partisan agency that assists Congress in investigating and reporting on government's effectiveness in using public funds.

Commonly referred to as the "Yellow Book," it contains standards for audits of government organizations, programs, activities, and functions, and of governmental funds received by contractors, nonprofit organizations, and other non-government organizations. Revisions are issued as required by the Comptroller General of the United States.

Official promulgations by the Governmental Accounting Standards Board (GASB) and, if not superseded, part of generally accepted accounting principles applicable to state and local governmental entities.

Group authorized by the accounting profession to establish generally accepted accounting principles (GAAP) applicable to state and local governmental entities.

Grade Point Average

Government Printing Office

A period of time following a borrower’s period of enrollment and preceding the repayment period start date for a loan during which the borrower is not required to make payments. This period is six months for Direct Loans and FFEL Program loans. For Federal Perkins loans, Defense loans, and NDSLs, see Initial Grace Period.

Classification of a student by academic year at a school; e.g. freshman, sophomore, or first-year, second-year, etc. A student's grade level is measured according to standards established by the school. Grade level helps determine a student's annual loan limit.

A cumulative measure of a student's grades over time where the grades have been converted to a numerical scale.

For a Direct Loan borrower enrolled in a program of study that is greater than one academic year in length, the borrower's advancement through the program for purposes of determining when a borrower becomes eligible for a higher Direct Loan annual loan limit. For undergraduate students, the Direct Loan annual loan limits increase as a student advances in grade level throughout a program.

A student who

Unique, 11-character "number" that identifies each grant award issued by a specific program office to a specific grantee. All funds are requested (and returned) using the Grant Award Number. The following is an example of a Grant Award Number and an explanation of the parts that make up the number: P031B151234

An entity (not a person) that applies for and receives a grant award from the Department. The grantee is responsible for ensuring the grant is administered in accordance with program regulations.

General Services Administration

A state or private nonprofit organization that has an agreement with the Department under which it will administer FFEL Program loans.

Graphical User Interface

An enrolled student who is carrying a half-time academic workload, as determined by the institution, that amounts to at least half of the workload of the applicable minimum requirement outlined in the definition of a full-time student, except that a student enrolled solely in a program of study by correspondence must be carrying a workload of at least 12 hours of work per week, or is earning at least six credit hours per semester, trimester, or quarter. Note that regardless of the work, no student enrolled solely in correspondence study is considered more than a half-time student.

Children ages 3 through 21, inclusive, who require special education and related services because they are

In the Perkins Program, lowering a borrower's scheduled payments, for up to one year at a time, if the borrower is scheduled to pay the $40 minimum monthly payment and the school determines that the borrower is unable to make the scheduled payments due to hardship, such as prolonged illness or unemployment.

A crime reported to local police agencies or to a campus security authority that shows evidence that the victim was intentionally selected because of the perpetrator’s bias against the victim based on the victim's actual or perceived race, gender, gender identity, religion, sexual orientation, ethnicity, national origin, or disability. See Volume 2 for details on requirements for reporting hate crime statistics to the Department.

Historically Black Colleges and Universities

Heightened Cash Monitoring

Heightened Cash Monitoring 1 Payment Method

Heightened Cash Monitoring 2 Payment Method

Higher Education Act

A crossover term funded out of the upcoming award year. In the Direct Loan Program, a summer term that is attached to the following fall through spring Scheduled Academic Year for purposes of monitoring annual loan limits. See also Trailer.

Health Education Assistance Loan Program

There are two payment methods (Heightened Management and Reimbursement) and three levels of heightened cash monitoring— Heightened Cash Monitoring 1 (HCM1), Heightened Cash Monitoring 2 (HCM2), and Reimbursement through which the Department more closely monitors the expenditure of federal funds by schools whose policies and procedures have been called into question.

High-need fields are

Individuals under the age of 21 who are low-income or at risk of abuse or neglect, have been abused or neglected, have serious emotional, mental, or behavioral disturbances, reside in placements outside their homes, or are involved in the juvenile justice system.

Federal legislation passed in 1965, with amendments and reauthorizations subsequently passed, authorizing federal postsecondary student financial aid programs and mandating that the programs be regulated and administered by the U.S. Department of Education.

A law that authorizes the Department to issue waivers and modifications of certain regulatory and statutory Title IV program requirements to ensure that military members who receive Title IV aid are not penalized due to their military service. The HEROES Act requires the Department to announce these waivers and modifications in a notice published in the Federal Register.

See Loan Holder.

Under a consortium or contractual agreement, the school where a student is enrolled in a degree or certificate program.

The school where students are taking part of their program requirements through either a consortium or contractual agreement.

See Family Size. Household size is the term used in the EFC calculation, and in verification.

Hispanic-Serving Institution

Information Technology

Information Assurance

Income-Based Repayment Plan

Institutional Base Salary

Institutional Capital Contribution (Perkins)

Income-Contingent Repayment Plan

Information for Financial Aid Professionals (web site)

Inspector General

Institution of Higher Education

Institutional Improvement Specialist

The amount of FSA program funds a school needs to make disbursements within three business days following the date the school receives the funds. This definition of immediate need applies to all FSA program funds (other than Perkins Loan funds), regardless of whether the school draws down funds by electronic funds transfer (EFT) through the ACH or through FEDWIRE.

A federal agency abolished when the Department of Homeland Security (DHS) was created in 2003. The responsibilities of the INS were divided among three different entities within the new DHS. (See U.S. Citizenship and Immigration Services.)

The status conferred on a noncitizen under the Immigration and Nationality Act of 1952, as amended, 8 U.S.C. 1182.

Any payment made in an incorrect amount (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements and includes any payment to an ineligible recipient, any payment for an ineligible service, any duplicate payment, payments for services not received, and any payment that does not account for credit for applicable discounts. (See Overaward and Overpayment.)

In the Direct Loan Program, the status of a Direct Subsidized Loan or Direct Unsubsidized Loan made to a student who is enrolled at an eligible institution on at least a half-time basis and who has not yet entered the grace period on the loan. If the student ceases to be enrolled on at least a half-time basis and enters the 6-month grace period on the loan, but resumes at least half-time enrollment before the end of the grace period, the loan returns to in-school status and the student will receive a full six-month grace period when he or she drops below half-time enrollment.

If a Direct Subsidized Loan or Direct Unsubsidized Loan borrower who has entered the repayment period on the loan following the conclusion of the 6-month grace period later re-enrolls at an eligible institution on a half-time basis, the student may receive an in-school deferment on the loan for as long has he or she remains enrolled at least half-time. When the student ceases to be enrolled at least half-time, the loan returns to repayment status.

Goods or services provided instead of money.

A situation in which a student has inadvertently received FSA loan funds in excess of annual or aggregate loan limits. A student who has inadvertently overborrowed is ineligible to receive additional FSA funds until he or she repays the excess loan amount in full or makes arrangements that are satisfactory with the loan holder to repay the excess amount.

A disbursement of FSA funds that a school inadvertently makes to a student after the student has ceased attendance, but before the date of the school's determination that the student withdrew. See Volume 5 for details on the treatment of inadvertent overpayments.

A student who is serving a criminal sentence in a federal, state, or local penitentiary, prison, jail, reformatory, work farm, or other similar correctional institution. A student is not considered incarcerated if that student is in a half-way house or home detention or is sentenced to serve only weekends.

The requirement that no more than 25% of a school's regular students be incarcerated for the school to be eligible to participate in the Title IV programs. A public or private nonprofit school can ask the Department to waive this limitation in certain circumstances.

The requirement that a school not provide any commission, bonus, or other incentive payment based in any part, directly or indirectly, upon success in securing enrollments or the award of financial aid to any person or entity engaged in any student recruitment or admission activity or in making decisions regarding the award of Title IV, HEA program funds.

In the Perkins Loan Program, steps a school may take to encourage a Perkins Loan borrower to make regular payments. See Volume 6 for details.

Duties that should be separated under an internal control system that relies on separation of function or duties to reduce the chance of errors or fraud. For example, one person should not be in a position to both embezzle funds and to hide the embezzlement by changing the recorded accountability.

Additional Direct Unsubsidized Loan eligibility (beyond the regular Direct Unsubsidized Loan annual and aggregate loan limits) that is available to graduate or professional students who are enrolled at least half-time in a health professions discipline that was eligible under the former Health Education Assistance Loan (HEAL) Program, or in certain naturopathic medical programs. The increased Direct Unsubsidized Loan amounts are intended to replace loan funds that otherwise would have been available under the HEAL Program.

A word used by accountants to communicate that an expense has occurred and needs to be recognized on the income statement even though no payment was made. The second part of the necessary entry will be a credit to a liability account.

A certified public accountant or a government auditor who meets the iGovernment Auditing Standardsi qualification and independence standards, including standards related to organizational independence.

A student who qualifies as an independent student under section 480(d) of the HEA. A student who satisfies one of the following criteria:

Any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. Chapter 33), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians (25 U.S.C. 450b(e)). See annually published Bureau of Indian Affairs list of Indian Entities Recognized and Eligible to Receive Services.

Those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved.

One of the ways a school can match its federal allocation in the FSEOG Program. In this approach a school ensures that every student's FSEOG award consists of 75% federal funds and 25% qualified nonfederal funds.

An infant or toddler from birth to age 2, inclusive, who needs early intervention services for specified reasons, as defined in section 632(5)(A) of the Individuals with Disabilities Education Act.

The Federal Student Aid website that was replaced by the Knowledge Center on Federal Student Aid's fsapartners.ed.gov website. The Knowledge Center provides information to financial aid professionals about the Title IV federal programs.

Information security is the preservation of confidentiality, integrity, and availability. Each of these attributes is defined as follows: Confidentiality-ensuring that information is accessible only to those authorized to have access; Integrity-safeguarding the accuracy and completeness of information and processing methods; Availability- ensuring that authorized users have access to information and associated assets when required.

Computing devices, ancillary equipment, software, firmware, and similar procedures, services (including support services), and related resources.

For the Campus-Based Programs, the amount that the Department first allocates to each participating school for an award year from new funds appropriated by Congress, according to statutory allocation formulas. An eligible school receives an initial allocation for each Campus-Based Program in which the school participates.

In the Perkins Loan Program, the period which immediately follows a period of enrollment and immediately precedes the date of the first required repayment on a loan. This period is generally nine months for Federal Perkins loans, Defense loans, and NDSLs made before October 1, 1980, and six months for NDSLs made on or after October 1, 1980. A borrower is only entitled to one initial grace period.

The designated department official authorized to begin an emergency action under 34 CFR 668.83.

Computer controls designed to provide reasonable assurance that transactions are properly authorized before processed by the computer, accurately converted to machine readable form and recorded in the computer, that data files and transactions are not lost, added, duplicated or improperly changed, and that incorrect transactions are rejected, corrected and, if necessary, resubmitted on a timely basis.

Immigration and Naturalization Service (INS is now part of Department of Homeland Security and known as U.S. Citizenship and Immigration Services.)

An institution of higher education, or a proprietary institution of higher education, or a postsecondary vocational institution as defined in 34 CFR part 600.

One of three types of institutions eligible for participation in the Federal Student Aid programs. The others are a proprietary institution of higher education, and a postsecondary vocational institution. For a more information see 34 CFR 600.4.

Any organization that is directly or indirectly related to a covered institution; and is engaged in the practice of recommending, promoting, or endorsing education loans for students attending such covered institution or the families of such students.

An institution-affiliated organization may include an alumni organization, athletic organization, foundation, or social, academic, or professional organization, of a covered institution. An institution-affiliated organization does not include any lender with respect to any education loan secured, made, or extended by such lender.

In the Perkins Loan Program, the institutional funds a school must provide if the school receives a Federal Capital Contribution in an award year.

The designation of an institution as public, for-profit, or nonprofit. By definition, an institution of higher education or a postsecondary vocational institution can be either public or private but is always nonprofit. A proprietary institution of higher education is always a private, for-profit institution.

A school must maintain Title IV funds in a depository account. For a school located in a state, the depository account must be insured by the FDIC or NCUA. For a foreign school, the depository account may be insured by the FDIC or NCUA, or by an equivalent agency of the government of the country in which the institution is located. If there is no equivalent agency, the Department may approve a depository account designated by the school.

Financial penalties or repayments that a school must pay to the Department as a result of incorrect school action or actions. A liability is the difference between the actual expenditures reported by the school in G5 for an Obligation Document Number for the award year and the final allowable expenditures as determined by the auditor, program reviewer, or hearing official.

Loans specific to a college, university, or other post-secondary educational institution and made from institutional funds. Eligibility and loan characteristics will vary among institutions.

The formula a postsecondary institution uses to allocate the school's own financial aid funds and those federal student aid funds for which the student is eligible and over which the school has control.

An electronic record that the Department transmits to an institution that includes an applicant's FAFSA information; personal identification information, and EFC.

Property having no physical existence, such as trademarks, copyrights, patents and patent applications and property, such as loans, notes and other debt instruments, lease agreements, stock and other instruments of property ownership (whether the property is tangible or intangible).

The system maintained by the Department's National Center for Education Statistics. Via the IPEDS website, schools report their graduation, completion, and transfer-out rates.

The cost of borrowing money. Interest is an expense calculated as a percentage of the outstanding (unpaid) principal balance.

The annual interest rate that is charged on a loan. The price charged per unit of money borrowed per year, or other unit of time, usually expressed as a percentage.

A payment that covers only accrued interest owed on a loan and none of the principal balance. Borrowers eligible for interest-only payments are not prohibited from making additional or larger payments.

A disbursement made prior to verification by a school to an applicant selected for verification, when the school believes the applicant's FAFSA information is accurate. A school is liable for any overpayment the student receives as an interim disbursement for which the student is later determined to be ineligible and any subsidized student financial aid the student received if the school does not receive a valid SAR/ISIR within the timeframe established under 34 CFR 668.60, that is not eliminated by adjusting other financial assistance or recovered from the student.

A process, directed by a school’s management and other personnel, designed to provide reasonable assurance that the objectives of the school are being achieved in the following categories

Internal controls consist of the control environment, risk assessment, control activities, information and communication, and monitoring. A necessary implication or subset of these objectives is the safeguarding of school and trust assets against unauthorized acquisition, use, or disposition.

Consequently, the definition of internal control, as it relates to safeguarding assets can be extended to include processes, directed by a school’s management and other personnel, designed to provide reasonable assurance regarding prevention of or prompt detection of unauthorized acquisition, use, or disposition of the school’s assets.

When the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis.

Standards that define the minimum level of quality acceptable for internal controls and provide the basis against which internal controls are to be evaluated.

The organization structure, operating procedures, and administrative practices that provide reasonable assurance that programs and administrative activities are efficiently carried out in accordance with the objectives of the Federal Managers' Financial Integrity Act of 1982 (FMFIA) and OMB Circular A-123, "Management Accountability and Control."

A bureau in the U.S. Department of the Treasury. It is responsible for collecting taxes and the interpretation and enforcement of the Internal Revenue Code.

An organization whose members represent accounting bodies in member countries. The group is dedicated to bringing about the harmonization of international accounting standards.

The committee authorized by the International Federation of Accountants (IFAC) to issue International Standards on Auditing (ISA) and guidance.

A set of accounting standards, developed by the International Accounting Standards Board (IASB), that is becoming the global standard for the preparation of public company financial statements. The IASB is an independent accounting standards body, based in London, that is unaffiliated with the AICPA.

Income Protection Allowance, also Independent Public Auditor

Integrated Postsecondary Education Data System

This indicator is checked by the school when entering the award on the COD website and notifies the Department of the school’s desire to award the student an Iraq and Afghanistan Service Grant.

A Title IV Grant for dependents of soldiers who died as a result of service in the U.S. military in Iraq or Afghanistan after September 11, 2001. The program has a duration of 6 Scheduled Awards, which equals 600% Lifetime Eligibility (LEU).

Internal Revenue Code

Internal Revenue Service

The feature that allows students and parents who are using FAFSA on the Web and who have already submitted their federal tax return to electronically retrieve certain tax data from the IRS database for entry on their FAFSA.

Internal Revenue Service Data Retrieval Tool

The Student IRS Request Flag and Parent IRS Request Flag on the SAR/ISIR indicate whether the IRS data retrieval process was used and the result if used.

A verification aid which provides a cross-reference to corresponding lines and elements on the ISIR, the FAFSA, and the IRS transcript.

Indian Self-Determination and Education and Assistance Act

Institutional Student Information Record

Annual ED reference publication that aid administrators use to interpret student information on the ISIR. It also explains codes and flags that appear in the FAA Information section of the ISIR. Available on the Knowledge Center.

Internet Service Provider

Job Location and Development (Program) in Federal Work-Study Program

A school is allowed to use part of the federal funds it receives under FWS to encourage students to participate in community service activities and to expand off-campus job opportunities for students who are currently enrolled and who want jobs regardless of financial need. Jobs may be located and developed under the JLD Program for both FWS and non-FWS eligible students. The federal-share limitation for a JLD Program is 80% of the allowable costs.

The record of journal entries in order by date. Often referred to as the book of original entry, since the entries are first recorded in a journal. From the journal the entries will be posted to the designated accounts in the general ledger.

The entry made in a journal. It will contain the date, the account name and amount to be debited, and the account name and amount to be credited. Each journal entry must have the dollars of debits equal to the dollars of credits.

Dear Colleague Letter designation for FFEL letters (published before January 2013)

Local Area Network

A disbursement made to a student who has ceased to be eligible. An otherwise eligible student becomes ineligible to receive Title IV, HEA program funds on the date that

A fee that may be assessed if a scheduled FSA loan payment is not made by the due date.

Noncitizens who are legally permitted to live and work in the U.S. permanently. LPRs are potentially eligible for Title IV aid. Form I-551 is the standard document supporting LPR status.

Dear Colleague Letter designation for limited distribution letters (published before January 2013)

Last Date of Attendance

Local Educational Agency

Leveraging Educational Assistance Partnership Program

An individual appointed by a court to be a "guardian" of a person and specifically required by the court to use his or her financial resources for the support of that person.

The legal status granted to an institution through a charter, license, or other written document issued by the appropriate agency or official of the State in which the institution is physically located.

The organization that initially made an education loan. The lender could be the U.S. Department of Education, the borrower's school, or a lending institution.

Enrollment status of students who are enrolled for any number of credits that is fewer than the school’s standard for half-time enrollment status.

Document granted by banks stating that the bank will guarantee amounts that its customer incurred.

If a school fails to meet the Refund Reserve Standard for returning funds in a timely manner in either of its two most recently completed fiscal years, the school may be required to submit an irrevocable letter of credit acceptable and payable to the Department equal to 25% of the returns the school made or should have made during its most recently completed fiscal year. Public schools and schools covered by a state tuition recovery fund that has been approved by the Department are not subject to the letter of credit requirements.

Lifetime Eligibility Used

In the Perkins Loan Program, the maximum dollar amount the Department allows a school to expend from the school's Perkins loan fund in a given award year. The LOE includes all authorized expenditures for the program, including loans to students, administrative cost allowance, and collection costs.

A grant program authorized by Title IV of the HEA.

For federal accounting purposes, a probable future outflow or other sacrifice of resources as a result of past transactions or events.

An information professional trained in library or information science who has obtained a postgraduate academic degree in library science awarded after the completion of an academic program of up to six years in duration, excluding a doctorate or professional degree.

The sum of all annual Eligibility Used (EU) percentages for Pell Grant and Iraq and Afghanistan Service Grant recipients. The maximum a student may receive is the equivalent of 12 full-time semesters, or 6 scheduled awards/600%. The COD system tracks a student’s Pell LEU percentage.

The continuation of a school's or third-party servicer's eligibility to participate in the Title IV programs subject to compliance with special conditions established by agreement with the Department or imposed as the result of a limitation or termination proceeding.

In the Perkins Loan Program, a series of steps a school must follow when withdrawing from the program or closing.

One of the award periods in G5. The liquidation period is one month long, follows the performance period and is the first closeout phase. During the liquidation period

The last date a school can draw down cash from the Department without special permission from the program office is the end of the liquidation period.

The availability of cash or ability to obtain it quickly, for the purpose of paying a debt.

Leave of Absence

The amount owed on a loan that, once paid, will retire the loan. See Loan Principal.

A document that provides a Direct Loan borrower with important loan-specific information, such as the anticipated loan disbursement amounts, the anticipated loan disbursement dates, and the amount of the borrower's loan fee. It is provided to the borrower before or at the time of the first disbursement of a Direct Loan.

The cancellation or reduction of a loan debt under the Direct Loan, FFEL, or Perkins Loan programs for certain types of public service.

Any guarantee, insurance, or other pledge with respect to the payment of all or part of the principal or interest on any debt obligation of a borrower to a nonfederal lender.

The organization that owns a loan. Examples include the U.S. Department of Education, banks, and schools. Most federal student loans made since July 1, 2010, are owned by the U.S. Department of Education. The current loan holder may be different than the organization that originally made the loan. The loan holder may be different than the loan servicer.

See Period of Enrollment.

Initially, the amount borrowed plus any fees charged by the lender. Later, it includes capitalized interest, charges and fees allowed by regulation, less any amount paid and credited to principal, and any amount cancelled, forgiven, or discharged.

Proportionally reducing an undergraduate Direct Loan borrower’s annual loan limit if the borrower is (1) enrolled in a program shorter than a full academic year, or (2) enrolled in a program that is one academic year or greater in length but is in a remaining period of study shorter than a full academic year.

An entity that collects payments on loans, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a loan (e.g., processing requests for a change in repayment plans). A federal loan servicer is a loan servicer for the U.S. Department of Education.

(1) A public board of education or other public authority legally constituted within a state to administer, direct, or perform a service function for public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a state; or such combination of school districts of counties as are recognized in a state as an administrative agency for its public elementary or secondary schools. (2) Any other public institution or agency having administrative control and direction of a public elementary or secondary school.

Any unit of government within a state, including —county, borough, municipality, city, town, township, parish, local public authority (including any public housing agency under the United States Housing Act of 1937), special district, school district, intrastate district, council of governments (whether or not incorporated as a nonprofit corporation under state law), and any other agency or instrumentality of a multi-, regional, or intra-state or local government.

A mechanism that speeds the availability of funds from cash collections by reducing the time from the customer mailing the check until the funds are available to spend. Remittances are sent to a bank near the customer and the bank deposits funds speedily to the payee’s account.

Level of Expenditure (in the Federal Perkins Loan Program)

Loan Origination Record

Any expense or irrecoverable cost, often referred to as a form of nonrecurring charge; an expenditure from which no present or future benefit may be expected.

A community where there is a high concentration of children eligible to be counted under title I of the Elementary and Secondary Education Act of 1965, as amended.

A person whose income falls below the Income Protection Allowances published annually by the Department in the Federal Register.

Late Stage Delinquency Assistance

Limit, Suspend or Terminate (a school's participation in the federal student aid programs)

Any natural catastrophe (including any hurricane, tornado, storm, high water, wind driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the United States, which, in the determination of the President, causes damage of sufficient severity and magnitude to warrant major disaster assistance to supplement the efforts and available resources of states, local governments, and disaster relief organizations in alleviating the damage, loss, hardship, or suffering caused thereby.

Evaluation by the Federal awarding agency or pass-through entity of the audit findings and corrective action plan and the issuance of a written decision to the auditee as to what corrective action is necessary.

Forbearance on a Direct Loan or FFEL program loan that a lender is required to grant because a borrower satisfies criteria such as (but not limited to) military or other qualifying service, residence in a designated disaster area, and medical or dental residency.

A promissory note that can be used to make one or more loans for one or more academic years (up to 10 years). An MPN lists the terms and conditions under which the borrower agrees to repay the loan and explains the borrowers rights and responsibilities.

Schools that participate in the Campus- Based Programs must provide nonfederal funds as a match for the federal funds they receive. The specific matching requirements for each Campus-Based Program are different. The institutional matches are known as the institutional nonfederal share in the FWS and FSEOG programs and the institutional capital contribution in the Perkins Program.

Reportable condition or combination of reportable conditions, that results in more than a remote likelihood that a material misstatement of the financial statements, or other significant financial reports, will not be prevented or detected.

A period of time, measured in academic years, equal to 150 percent of the length of the educational program, as published by the institution, in which the borrower is currently enrolled.

Management's Discussion and Analysis in an audit report

Multiple Data Entry

A subsidized government benefit program (e.g., TANF), sometimes referred to as welfare, that requires beneficiaries to have income that does not exceed a specific level.

Can be determined with reasonable certainty or is reasonably estimable.

A means-tested subsidized government health benefit program, the receipt of which can help qualify aid applicants for the simplified needs test or automatic zero EFC.

An allied health professional (working in fields such as therapy, dental hygiene, medical technology, or nutrition) who is certified, registered, or licensed by the appropriate state agency in the state in which he or she provides health care services. An allied health professional is someone who assists, facilitates, or complements the work of physicians and other specialists in the health care system.

Financial aid awarded on the basis of specific accomplishments or talents rather than financial need.

A purchase of supplies or services using simplified acquisition procedures, the aggregate amount of which does not exceed the micro-purchase threshold. Micro-purchase procedures comprise a subset of a non-Federal entity’s small purchase procedures. The micro-purchase threshold is set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions). It is $3,500 except as otherwise discussed in Subpart 2.1 of that regulation, but this threshold is periodically adjusted for inflation.

The shortest permissible length of time for which a Direct Loan may be made. For standard term credit-hour programs and nonstandard term SE9W programs, the minimum loan period is the term. For non-term programs, clock-hour programs, and non-standard term, non- SE9W programs, the minimum loan period is the lesser of

Any false, erroneous or misleading statement by an eligible institution, one of its representatives, or any ineligible institution, organization, or person with whom the eligible institution has an agreement to provide educational programs, or to provide marketing, advertising, recruiting, or admissions services made directly or indirectly to a student, prospective student or any member of the public, or to an accrediting agency, to a state agency, or to the Department. A misleading statement includes any statement that has the likelihood or tendency to deceive or confuse. A statement is any communication made in writing, visually, orally, or through other means. Misrepresentation includes the dissemination of a student endorsement or testimonial that a student gives either under duress or because the institution required the student to make such an endorsement or testimonial to participate in a program.

The first $25,000 of each subaward (regardless of the period of performance of the subawards under the award) excluding equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000.

A period of enrollment that is shorter than a school’s regularly scheduled academic periods that either falls within but does not span an entire semester, or falls between a school’s regularly scheduled academic periods. Often referred to by schools as a mini-session.

A program is "offered in modules" if a course or courses in the program does not span the entire length of the payment period or period of enrollment.

Method of Payment

Memorandum of Record

Memorandum of Understanding

Master Promissory Note

The COD response sent to schools upon receipt of an MPN once edits have been performed and the linking attempted by COD.

The unique identifier printed on the MPN. It is made up of a student’s SSN, "M" for subsidized or unsubsidized, "N" for Parent PLUS and Grad PLUS, the last two digits of the award year, a school’s Direct Loan code, and a three-digit sequence number. Example: 123456789M07G12345001.

Multiple Reporting Record

Modified Total Cost

Modified Total Direct Cost

The feature of the Master Promissory Note that allows multiple Direct Loans for the same student borrower to be disbursed under the same MPN. Once an MPN has been accepted and remains open, schools that use this feature do not have to obtain a new promissory note each academic year. The MPN may be valid for up to 10 years.

The requirement that FSA funds, except the Federal Work-Study wages, be paid in two or more installments of approximately equal increments.

For the Pell Grant and Iraq and Afghanistan Service Grant programs, the MRR identifies originations and disbursements being reported by more than one institution for the same student during the same period of time. The multiple report records are designed to provide institutions with information to identify and resolve potential overaward payments and concurrent enrollments before they occur

Multi-Year feature of Direct Loan promissory notes

The FAFSA component of the myStudentAid mobile app.

An app for Apple and Android devices which allows applicants to file FAFSA data on phone and tablet devices.

National Association of College and University Business Officers

Net Accepted and Posted Disbursements

National Association of Student Financial Aid Administrators

National Association of State Student Grant and Aid Programs

The operational committee of medical experts established by the Department to determine whether the medical school accrediting standards used in other countries are comparable to those applied to medical schools in the United States, for purposes of evaluating the eligibility of accredited foreign graduate medical schools to participate in the title IV, HEA programs.

Voluntary national organization which implements reciprocal state-level authorization processes for postsecondary distance education.

A credit bureau with a service area that encompasses more than a single region of the country. Any one of the national credit bureaus with which the Department has an agreement.

The scholarship program authorized by Chapter 2 of subpart 1 of Title IV-A of the HEA.

A measurement standards laboratory which is a non-regulatory agency of the United States Department of Commerce. The institute’s mission is to promote U.S. innovation and institutional competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve quality of life.

A previously offered grant program under which grants were awarded during the third and fourth academic years of study to eligible financially needy undergraduate students pursuing eligible majors in the physical, life, or computer sciences, mathematics, technology, or engineering, or foreign languages determined to be critical to the national security of the United States.

The Department of Education’s central database for student financial aid. It contains student-level data on recipients of Title IV loans and grants. Located on the web at

An agency or association that the Department recognizes as a reliable authority to determine the quality of education or training offered by an institution or a program offered by an institution. The Department recognizes these agencies and associations under the provisions of 34 CFR part 602 and publishes a list of the recognized agencies in the Federal Register.

National Center for Educational Statistics

National Committee on Foreign Medical Education and Accreditation

National Credit Union Association

National Direct (or Defense) Student Loan Program

Employment provided by an institution itself or by another entity to a student who has demonstrated to the institution or the entity (through standards or methods it establishes) a financial need for the earnings from that employment for the purpose of defraying educational costs of attendance for the award year for which the employment is provided.

A statement of what the CPA does not know as opposed to what the CPA believes (positive assurance) that is, a statement that nothing came to his attention that caused him to believe that the accounts examined did not meet a specified standard. A statement that the CPA was "not aware of material modifications that should be made to financial statements for them to conform with U.S. generally accepted accounting principles" is negative assurance.

Section 492 of the Higher Education Act (HEA) requires that, before publishing any proposed regulations to implement programs under Title IV of the HEA, the Department obtain public involvement in the development of those proposed regulations. Negotiated Rulemaking is the process the Department uses to obtain input from organizations and groups that represent the interests significantly affected by the proposed regulations.

National Early Intervention Scholarship and Partnership (Program)

Total actual disbursements [Disbursement Release Indicator (DRI) = True] that have been accepted and posted on the COD System plus accepted actual disbursement adjustments (upward or downward).

The current market value at the time of application of the assets (not including a primary residence or working farm) minus the outstanding liabilities or indebtedness against the assets.

Cash Receipts (funds drawn through G5) minus Refunds of Cash (funds returned through G5) minus Returns of Cash (drawdowns rejected by the school's bank). This figure will also include drawdown adjustments.

A measure of a college's profitability, used when calculating the composite score. The net income ratio is expressed as a fraction with the income before taxes as the numerator and the total revenues as the denominator.

An online tool providing estimated net price information to current and prospective students and based, as much as possible, on their individual circumstances. Net price is defined as the cost of attendance minus the average yearly grant and scholarship aid, and all Title IV schools that enroll full-time, first-time degree- or certificate-seeking undergraduate students must have on their website a net price calculator.

National Finance Center

National Institute of Standards and Technology

The amount of a bond, note, mortgage, or other security as stated in the instrument itself, exclusive of interest or dividend accumulations. The nominal amount may or may not coincide with the price at which the instrument was first sold, its present market value, or its redemption price. Often referred to as the stated value.

A condition in which financial management systems do not substantially conform to financial systems requirements. Financial management systems include both financial and related (or mixed) systems.

Coursework required for teacher certification or recertification in the state where the student plans to teach for which the school that offers the coursework does not award an academic credential.

A state, local government, Indian tribe, institution of higher education (IHE), or nonprofit organization that carries out a Federal award as a recipient or subrecipient.

Control problems that can be corrected at the Principal Office level without the approval or attention of the next higher level of management.

Any building or property owned or controlled by a student organization that is officially recognized by the institution; or any building or property owned or controlled by an institution that is used in direct support of, or in relation to, the institution's educational purposes, is frequently used by students, and is not within the same reasonably contiguous geographic area of the institution.

The paying of a school's share of a student's Federal Work-Study wages through a contribution of services or equipment—for example, tuition and fees, room and board, and books and supplies.

A school financial statement and/ or compliance audit conducted by an independent public accountant (as defined by the audit standards of the U.S. General Accounting Office) who has been hired by the school. Also called an Independent Audit or an OMB Circular A-133 audit.

The share of FSEOG grants made to students from the school's own resources. In general, this "match" must equal 25% of the total FSEOG awards made to students. The school's resources may include the following:

The types of nonfederal FSEOG matching include the individual recipient basis, aggregate basis, and fund-specific basis.

The share of a student's wages paid by a school from school or other eligible funds. In general, a school must contribute (match) 25% of the student's total wages. There are exceptions for employment

A school may also pay the nonfederal share with noncash contributions.

An institution that is owned and operated by one or more nonprofit corporations or associations, no part of the net earnings of which benefits any private shareholder or individual;

An institution that is owned and operated only by one or more nonprofit corporations or associations; and

An organization owned and operated by one or more nonprofit corporations or associations where no part of the organization's net earnings benefits, or may lawfully benefit, any private shareholder or entity. An organization may show that it is nonprofit by meeting the provisions of § 75.51 of the Education Department General Administrative Regulations (EDGAR), 34 CFR 75.51.

An academic term in which classes begin and end on fixed dates, but that does not meet the requirements to be considered a standard term.

An academic structure in which classes do not begin and end on fixed dates. A program measuring progress in clock hours is always considered a nonterm program. A credit-hour program is considered nonterm if it has:

The amount of time necessary for a student to complete all requirements for a degree or certificate according to the institution's catalog. This is typically four years for a bachelor's degree in a standard term-based institution, two years for an associate degree in a standard term-based institution, and the various scheduled times for certificate programs.

Notification about the availability of information an institution is required to disclose and provide to an individual on a one-to-one basis through an appropriate mailing or publication, including direct mailing through the U.S. Postal Service, campus mail, or electronic mail. Posting on an Internet website or an Intranet website does not constitute a notice.

Proposed regulations that are published in the Federal Register with an invitation for the public to submit comments during a specified comment period. See also Final Rule.

Notice of Proposed Rulemaking

Negotiated Rulemaking

National Student Clearinghouse

Non-Sufficient Funds

National Student Loan Data System

The result on a SAR/ISIR of the match with NSLDS for identifying potential default or overpayment issues in the applicant's financial aid history.

The process through which NSLDS assists schools to detect significant changes to a student's financial aid history that may affect a student's aid eligibility. If NSLDS detects such a change, it will inform CPS. CPS generates a new ISIR and a new NSLDS transaction number.

National Student Loan Data System Professional Access Website

The number of persons in the household size that are enrolled at least half time in a degree or certificate program at a Title IV-eligible postsecondary school. Number in college is used in the EFC calculation and is subject to verification.

A licensed practical nurse, a registered nurse, or other individual who is licensed by the appropriate State agency to provide nursing services.

The net amount of obligations in a given account for which payment has not yet been made.

Binding agreements that will result in outlays immediately or in the future.

Amounts of orders placed, contracts awarded, services received, and other transactions occurring during a given period that would require payments during the same or a future period.

Object Class/Objective Classification

Office of Chief Financial Officer

Office of the Chief Information Officer

Office of Civil Rights

An eight-digit number assigned to an institution upon approval to participate in Federal Student Aid programs. It is used throughout multiple systems to identify a school entity (the first six digits) and its individual locations (the last two digits).

An office within the Department of Education. OGC provides legal services to all units within of the Department.

An office within the Department of Education. Within the office, Investigation Services (IS) is responsible for all investigative activities relating to the Department's programs and operations and the prevention and detection of fraud and abuse in these programs and operations.

The official cohort is the cohort default rate the Department publishes for an institution under 34 CFR 668.186. Cohort default rates calculated for the FFEL and Direct Loan programs are not related in any way to cohort default rates that are calculated for the Federal Perkins Loan Program.

The date on which an institution must report fall enrollment data to either the state, its board of trustees or governing board, or some other external governing body.

Office of the General Counsel

Office of Hearings and Appeals

Office of Inspector General

Office of Management

Office of Management and Budget

A dormitory or other residential facility for students that is located on an institution's campus, as defined in § 668.46(a).

A federal student loan payment made within 15 days of the scheduled due date.

An educational program that is at one academic year in length as defined under 34 CFR 668.2.

A period that is one-third of an academic year as determined by an institution. At a minimum, one-third of an academic year must be a period that begins on the first day of classes and ends on the last day of classes or examinations and is a minimum of 10 weeks of instructional time during which, for an undergraduate educational program, a full-time student is expected to complete at least eight semester or trimester hours or 12 quarter hours in an educational program whose length is measured in credit hours or 300 clock hours in an educational program whose length is measured in clock hours.

For an institution whose academic year has been reduced under § 668.3(c), one-third of an academic year is the pro-rated equivalent, as measured in weeks and credit or clock hours, of at least one-third of the institution’s academic year.

Object Oriented Development

Operations Performance Division

Office of Postsecondary Education (in the U.S. Department of Education)

Office of Postsecondary Education Identifier

The process through which and point at which a school creates and certifies a loan.

The amount a borrower is required to pay the Department to help defray the costs of making a Direct Loan.

For purposes of determining a student’s eligibility for Title IV funds, estimated financial assistance includes all scholarships, grants, loans, or other assistance known to the institution at the time the determination of the student’s need is made, including national service educational awards or post-service benefits under Title I of the National and Community Service Act of 1990 (42 U.S.C. 12511 et seq.), but excluding veterans’ education benefits as defined in subsection (c). In general, tuition prepayment plans shall reduce the cost of attendance by the amount of the prepayment, and shall not be considered estimated financial assistance. For a detailed explanation of the components included in Other Financial Assistance see the Higher Education Act, as amended, Part F, Section 480(j).

Information other than the audited financial statements and the related auditor's report, included in a company's annual report. The other information standard requires an auditor to focus on the responsibility to identify material inconsistencies between the other information and the company's audited financial statements and on the identification of material misstatements of fact, based on relevant evidence obtained and conclusions reached during the audit.

The issuance of checks, disbursement of cash, or electronic transfer of funds made to liquidate an obligation.

The Student Aid Report (SAR), Electronic Student Aid Report (ESAR), or other document or automated data generated by the Department of Education's central processing system or Multiple Data Entry processing system as the result of the processing of data provided in the Free Application for Federal Student Aid (FAFSA).

Amount by which a student's aid package exceeds his or her need. An overaward exists whenever a

Funds disbursed to a student in excess of his or her need. That is, an overpayment exists when some or all of the funds that make up an overaward have been disbursed to the student.

The federal awarding agency that provides the predominant amount of funding directly to a non-Federal entity not assigned a cognizant agency for audit. When there is no direct funding, the federal awarding agency that is the predominant source of pass-through funding must assume the oversight responsibilities.

The possession of substantially all of the benefits and risks incident to ownership.

Dear Colleague Letter designation for Pell Grant Program letters (published before January 2013)

Promissory Note (also PN)

Payment Analyst (in Performance Improvement and Procedures Service Group)

The quantitative component (along with the qualitative component, i.e. grades) of Satisfactory Academic Progress (SAP). The minimum amount of academic credit/hours a student must complete to remain on track to finish the academic program within SAP limits. See Satisfactory Academic Progress.

A school's process for determining the type and amount assistance (from all sources) that will be offered to a student.

Payee Account Number

The former process for documenting that a student is an eligible noncitizen used when a student doesn’t pass automated secondary confirmation or when a school has conflicting information. Paper secondary confirmation was accomplished by use of the G-845 form and supporting documents. This process has been replaced by Third-Step Verification.

A student's biological or adoptive mother or father or the student's stepparent, if the biological parent or adoptive mother or father has remarried at the time of application.

Direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects.

An eligible institution that meets the standards for participation in federal student aid programs and has a current program participation agreement with the Department.

Cost of housing or education supplies (books and materials) assessed by a third-party but paid (with a student's authorization) from a student's FSA funds if the school has entered into a contract with the third party to provide institutional housing and/or bookstore services.

A non-Federal entity that provides a subaward to a subrecipient to carry out part of a Federal program.

The financial responsibility standards that look at schools' and affiliated officials' past performance (34 CFR 668.174) as it relates to the Title IV programs.

A person who is associated with a religious order or denomination, is recognized by that religious order or denomination as someone who provides confidential counseling, and is functioning within the scope of that recognition as a pastoral counselor.

An entity designated by the grantee to request and manage federal funds on its behalf. The grantee and payee can be the same entity.

The recipient (organization or individual) of Department of Education funds responsible for accounting for those funds. The payee may be a single entity, such as a college or a central finance office, that requests funds and prepares financial reports for several organizations within its system.

Funds deposited into payees' accounts. The payment must be disbursed within three business days.

Formerly Reimbursement Analyst. An FSA employee who ensures that schools subject to heightened cash management have accurately determined FSA eligibility of, and payment to each student, with sufficient funds in the school's G5 account, and submits documentation to that effect.

An electronic record that is provided to the Department by an institution showing student disbursement information.

The methods through which the Department provides funds to schools, including the advance payment method, the reimbursement payment method, and the cash monitoring payment methods.

The academic period or period of enrollment established by an institution for which financial aid is disbursed. Payments for all federal student aid programs except FWS must be made on a payment period basis.

The total required to pay off a loan. It includes the loan principal, capitalized interest, accrued interest, late charges, and other charges, fees, and costs allowed by the applicable regulations.

The date on which a loan payoff calculation is based.

Performance-Based Organization

Parental Contribution

Portable Document Format

Occurs when at least 25 percent of a school's students start classes during a given 30-day period. A school is given some leeway under the excess cash rules during this period.

A monitoring program in which the audit documentation of one CPA firm is periodically reviewed by independent partners of other firms to determine that it conforms to the standards of the profession.

The field in the ISIR that alerts schools to an applicant’s Pell Grant eligibility status. A “Y” confirms that a student’s EFC and undergraduate or qualifying graduate status make him or her eligible for a Pell Grant and that the record has been included in the payment system database. This flag does not take into account whether students have reached their Pell lifetime eligibility used limit.

The formula used to calculate an eligible student’s annual Pell Grant. The formulas used for individual students are differentiated by a student’s enrollment status and program type.

A table showing the annual awards that three-quarter, half-time, and less-than-half-time students at term-based institutions using credit hours would receive for an academic year in the Pell Grant Program. This table is published annually by the Department and is based on

This list is automatically generated by COD and sent to a school’s SAIG mailbox. It produces a listing of anticipated disbursements (Disbursement Release Indicator (DRI) set to False) and actual disbursements ((DRI) set to True) with dates set 8 to 30 days in the future. The list can be used to monitor anticipated disbursements nearing disbursement dates to either set the DRI to True for confirmed eligible students, or to cancel the award for ineligible students. The list also can be used to monitor awards scheduled for upcoming disbursements to determine current eligibility.

Schools must evaluate their students’ Pell Grant eligibility based on current enrollment status as of this date. Changes to enrollment status after the Recalculation Date (also called census date) do not result in changes to Pell awards.

Sent annually by COD just prior to the close of the award year (September 30), the report provides a one-record per student summary of the total YTD Pell Grant disbursements in COD. Pell Grant Reconciliation Reports can also be ordered by a school through the COD web and are useful for both monthly and year-end reconciliation.

Provides a list of students selected by the CPS for verification who have either a “blank” or “W” verification status in COD. Students whose verification status is “W” must be updated to be reconciled. Students whose verification status is “blank” must be updated to be disbursed. COD automatically sends the report to the school’s SAIG mailbox on a monthly basis through the last day of December for the award year ending on July 31.

Contains detailed award and disbursement information at a transaction level. Pell Grant YTD Records are created only upon school requests. They can be requested on a per student, or all students, basis and they are a good tool for the reconciling of student Pell data and rebuilding a school’s corrupted data base. On an all student basis, the Pell Grant YTD Record shows the number of recipients at the school; the number of award and/ or disbursement records that were accepted, corrected, and rejected; and, for certain edit codes, the number of times a school received that specific edit code on a response document.

Postsecondary Education Participants System

The percent of his or her Pell eligibility a student has used in an award year. The percentage is calculated by summing all of the accepted disbursement records for a student within an award year across all schools and dividing that amount by the Scheduled Federal Pell Grant Award for the student for the award year.

For Return of Title IV Funds purposes, the percentage determined by dividing the number of days or clock-hours in a payment period or period of enrollment, as applicable, completed by a student before he or she withdrew by the total length of the payment period or period of enrollment in days or clock hours.

One of the award periods in G5. The period between the FSA program award begin date and the FSA program end date. During this period, schools can draw down cash. Once the performance period ends, the closeout process begins. During the performance period:

Process of testing the degree to which a system or a component accomplishes its designated functions within given constraints in regards to processing time and data transfer rates.

The period for which a federal education loan is intended. The period of enrollment must coincide with a period established by the school for which institutional charges are generally assessed (e.g., semester, trimester, quarter, length of the student's program or academic year). The period of enrollment is also referred to as the loan period.

The time during which the non-Federal entity may incur new obligations to carry out the work authorized under the Federal award. The Federal awarding agency or pass-through entity must include start and end dates of the period of performance in the Federal award.

In awarding Perkins Loans, a school must have given priority to those students with exceptional financial need (as defined by the school). A school’s Perkins selection procedures must be in writing, uniformly applied, and kept on file at the school.

The legally binding document that is evidence of a borrower's indebtedness to a school.

Property other than real property. It may be tangible, having physical existence, or intangible.

PII means information that can be used to distinguish or trace an individual’s identity, either alone or when combined with other personal or identifying information that is linked or linkable to a specific individual. Some information that is considered to be PII is available in public sources such as telephone books, public Web sites, and university listings. This type of information is considered to be Public PII and includes, for example, first and last name, address, work telephone number, email address, home telephone number, and general educational credentials.

The definition of PII is not anchored to any single category of information or technology. Rather, it requires a case-by-case assessment of the specific risk that an individual can be identified. Non-PII can become PII whenever additional information is made publicly available, in any medium and from any source, that, when combined with other available information, could be used to identify an individual.

Personally Identifiable Information

Personal Identification Number

Professional Judgment

Public Law

Document that summarizes the information contained in the Borrower’s Rights and Responsibilities Statement section of a Direct Loan Master Promissory Note (MPN). A PLD is provided to students (and parents borrowing on behalf of students) who attend schools that use the multiyear feature of the MPN. Since borrowers at these schools don’t sign a new promissory note for each loan, borrowers receiving new loans under a previously signed MPN receive a PLD to remind them of their rights and responsibilities.

Plain Language Disclosure

Potential Overaward

A statement as to what the CPA believes. An example is an opinion that the financial statements are presented fairly in conformity with U.S. GAAP. The opposite is negative assurance.

A program offered by a foreign graduate medical school that requires, as a condition of admission, that its students have already completed their non-medical undergraduate studies and that consists solely of courses and training leading to employment as a doctor of medicine or doctor of osteopathic medicine.

A program of instruction for individuals who have completed a baccalaureate degree, that

A student may receive TEACH Grants for completion of a first post-baccalaureate program.