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Glossary of Terms

 

Ability To Benefit (ATB)

A federal student aid eligibility criteria for postsecondary students who: (a) do not have a high school diploma or its recognized equivalent and (b) are beyond the age of compulsory school attendance in the state where the institution is located, and (c) had enrollment in a Title IV eligible program at a higher education institution prior to July 1, 2012.  To demonstrate ability to benefit, ATB students must pass an independently administered test approved by the U.S. Secretary of Education.

Academic Year (AY)

A time period of at least 30 instructional weeks for a credit-hour program, in which, an undergraduate student is expected to complete a minimum of 24 semester hours (units).  Students who are enrolled in at least 12 units during the Fall and Spring semesters at ARC will accomplish 24 units in an academic year.

Automatic Zero EFC

An Expected Family Contribution (EFC) status where, because of low income, a student automatically has a zero EFC. See also Expected Family Contribution (EFC).

Award

As a noun, a specific amount of student financial aid. As a verb, approving such student financial aid.

Award Year

The time period, from July 1st of one year to June 30th of the following year, for which financial aid awards are made. The award year differs from the federal fiscal year (which is from October 1 to September 30 of the following year).  The Fall semester is the beginning of each award year, and the summer term is last period of enrollment in the award year.

Base Year

The calendar year that precedes an award year. For example, calendar year 2011 is the base year for the 2012-2013 award year.  Income and taxes during the base year are used to calculate funding eligibility for the current award year.

Campus-Based Programs (offered at ARC)

The term applied to three federal student aid programs administered on campus by eligible institutions of postsecondary education:

ARC only participates in the FWS and FSEOG campus-based aid programs.  Funding is limited for both of these programs and students are awarded based upon highest need and earliest completion of the financial aid file.

Cancellation

Borrowers of federal student loans may be able to have all or part of their student loans canceled for a variety of reasons, such as:

Specific allowable provisions depend on the type of loan borrowed.

Capitalizing Interest

Adding accrued (accumulated) interest to the loan principal rather than having the borrower make monthly interest payments. Capitalizing interest increases the principal amount of the loan and, therefore, the total cost of the loan. 

Central Processing System (CPS)

The system that processes applications for federal student aid (FAFSA), conducting quality control and eligibility checks on the application data.  See also Free Application for Federal Student Aid (FAFSA), expected family contribution (EFC), Institutional Student Information Record (ISIR), Student Aid Report (SAR), edit checks, federal output document, verification, and National Student Loan Data System (NSLDS).

Cohort Default Rate

A measure of the percentage of a school's student borrowers who have defaulted on their federal student loans.

Common Origination and Disbursement (COD)

Common Origination and Disbursement (COD) is a streamlined method for processing award and payment data for Title IV programs such as Pell and Direct Loans.

Common School Identifier (CSID) - also known as "Federal School Code"

The 6-digit identifier assigned to schools and third party servicers that is common across the Pell Grant and Direct Loan programs.  Also known as the federal school code, ARC's CSID is 001232.

Conflicting Information

Any information obtained by the school that is different from information previously available to the school and that impacts a student's eligibility for aid.  See also verification and verification items.

Consortium Agreement (also called "Contractual Agreement")

A written agreement wherein one school (the home school - ARC) agrees to give its students full credit for certain course work provided another school (the host school - either CRC, SCC or FLC.  This must be a Los Rios College). Such an agreement signifies that the home school considers the host school's academic standards and offerings equivalent to its own. This written agreement is called a "Consortium Agreement" when the schools involved are all eligible to participate in the FSA programs.

Cost of Attendance (COA)

For federal student aid (FSA) purposes, COA is a student's total cost of attending a postsecondary institution for a specified period of time as established by law. The COA includes tuition and fees, room and board, an allowance for books, supplies, transportation, and some miscellaneous expenses.

Credit Hour

A credit hour is a unit of measure that gives value to the level of instruction, academic rigor, and time requirements for a course taken at an educational institution. Institutions have the flexibility to demonstrate alternative methods of measuring student learning, so long as they result in institutional equivalencies that reasonably approximate the definition of a credit hour for Federal purposes.

Data Matches

When a federal student aid application is processed, the Central Processing System (CPS) compares (or matches) the application data with records at other federal agencies (the Social Security Administration, the Department of Homeland Security, the Department of Veterans Affairs, and the Selective Service) and FSA's internal databases (such as the National Student Loan Data System).

Default

For federal student loans, a specific status wherein the borrower has failed to make payments and the loan is delinquent. (Specific terms vary by loan program.)  Defaulting on a student loan can create significant financial problems to a borrower including, but not limited to, damaged credit, withholding of tax refund dollars, and reduced eligibility for federal entitlement programs.  There can also be serious legal consequences for student-loan defaulters. See also cohort default rate.

Deferment

For federal student loans, a period of time in which loan payments do not have to be made and for subsidized loans, interest does not accrue. Depending on the loan program, students may be granted deferments for many reasons, such as returning to school, economic hardship, or disability. 

(See FSA Handbook, Volume 2: School Eligibility and Operations or Volume 6: Campus-Based Programs.)

Dependency Override

In unusual circumstances, a financial aid administrator may use professional judgment to classify a dependent student as independent for the purposes of determining student aid eligibility.  Professional, third party documentation is generally necessary to support such determinations at ARC.

Dependent Student

For the purposes of applying for federal student aid, a student who does not meet any of the criteria for an independent student generally would be classified as a dependent student and would report parental information when applying for federal student aid.  Students age 23 and less are classified of dependent students, regardless of living circumstances or financial self-sufficiency, except when the student is:  married, the parent of a child that s/he supports more than 50%, an emancipated minor, a ward of the court, the child of both deceased parents, or on active duty in the US Armed Forces.

Dependents

This includes the parents' or independent student's children who receive more than half their support from the parents or student, as well as other persons who both live with and receive more than half their support from the parents or student.

Direct Loan Program

A federal program in which the U.S. Government, not a commercial lender, provides education loans to student and parent borrowers directly through schools.  ARC the following two loans on the list below:

These are referred to collectively as Direct Loans. The same types of loans used to be available through the Federal Family Education Loan (FFEL) Program using funds from private lenders, but that program was discontinued in 2010.

Disbursement

The process, by which, Title IV program funds are paid to a student.  A school may pay a student or parent directly (by electronic funds transfer [EFT] or by check).  At ARC, funds are disbursed through BankMobile Financial Services.

Dislocated Worker

In general, a person is only considered a dislocated worker if s/he meets one of the following conditions:

Edit Checks

When a federal student aid application is processed, the Central Processing System (CPS) completes a series of quality control checks on the application data, in an effort to identify incomplete or inconsistent data and to catch errors.

Electronic Funds Transfer (EFT)

A paperless means of electronically transmitting debits and credits.  At ARC, disbursements are most commonly made electronically to the student's personal bank or to the debit/ATM card offered through BankMobile Financial Services.

Eligible Institution

An institution of higher education that meets all the criteria to participate in Title IV federal student aid programs (includes public or private nonprofit institutions, postsecondary vocational schools, and proprietary institutions).

Eligible Program

A legally authorized course of study that leads to a degree or certificate and meets specified Title IV eligibility criteria.

Eligible Student

A postsecondary student who meets the federal student aid eligibility requirements. (See FSA Handbook, Volume 1: Student Eligibility and Subpart C of the Student Assistance General Provisions regulations (34 CFR 668)).

eMPN (Electronic Master Promissory Note)

A Web-based Master Promissory Note which a student can complete and sign electronically using a PIN. Also see Master Promissory Note.

Enrolled

For federal student aid purposes, a student is considered enrolled when he or she completes registration requirements and begins the attendance period.

Enrollment Reporting

A function of the National Student Loan Data System (NSLDS) that monitors student enrollment status. When a student's enrollment status changes in any way that affects loan repayment, the school generally must notify NSLDS within 30 days of the change.

Enrollment Status

A measure of a student's academic workload. Student enrollment may be categorized as full time, three-quarter time, half time, or less-than-half time. 

Entrance Counseling

Title IV institutions must offer loan counseling to first-time federal student loan borrowers before disbursing the loan. Entrance counseling covers the borrower's rights and responsibilities, the terms and conditions of the loan, and the consequences of default. Compare exit counseling.

Estimated Financial Assistance (EFA)

The amount of federal, state, and private financial assistance a school estimates a student will receive.

Exit Counseling

Title IV institutions must offer loan counseling to federal student loan borrowers who are leaving school or dropping below half-time enrollment.  Exit counseling covers the borrower's rights and responsibilities, loan repayment, and the consequences of default.  During the exit counseling, borrowers are also required to provide updated personal information, such as address, telephone number, and employer. Compare entrance counseling.

Expected Family Contribution (EFC)

A comparative measure, determined according to a need analysis formula specified by law, of how much the student and his or her family can be expected to contribute to the cost of the student's education for an award year. This figure is used to determine an applicant's eligibility for federal student aid. The EFC figure is shown on the Student Aid Report and Institutional Student Information Record received after completing the Free Application for Federal Student Aid.

Family

A member of an individual's family is a parent, sibling, spouse, child, spouse's or sibling's parent, or child's spouse.

Federal Direct Consolidation Loan

A loan, funded by the federal government rather than a private lender, that combines multiple Title IV student loans (including non-Direct loans) into a single loan with one monthly payment. Borrowers may also consolidate certain student loans provided by the U.S. Department of Health and Human Services.

Federal Direct Loan Program

A federal program in which the U.S. Government (not a commercial lender) provides education loans to student and parent borrowers directly through schools (loans at ARC listed below):

These loans are referred to collectively as Direct Loans. The same types of loans used to be available through the Federal Family Education Loan (FFEL) Program using funds from private lenders, but that program was discontinued in 2010.

Federal Direct Stafford Loan (Subsidized)

A federally subsidized, low-interest student loan awarded on the basis of financial need. The Federal Government does not charge interest on subsidized loans while borrowers are enrolled at an eligible school at least half time or during authorized periods of deferment. As part of the Federal Direct Loan Program, these loans are made directly by the Federal Government (rather than by a private lender) through participating schools. Compare Federal Stafford Loan.

Federal Direct Unsubsidized Stafford Loan (Direct Unsubsidized Loan)

A low-interest loan for students who do not meet the financial-need criteria for a subsidized loan.  The borrower is responsible for all interest on the loan. As part of the Direct Loan Program, these loans are made directly by the Federal Government (rather than by a private lender) through participating schools.

Federal Need Analysis Methodology

The statutory formula used to determine the Expected Family Contribution (EFC) for all students applying for Title IV federal student aid.  See also full data element formula and simplified formula. Commonly referred to as the Federal Methodology or FM.

Federal Output Document

A record of application data and need analysis generated by the Central Processing System (CPS) as a result of processing an application for federal student aid.   See Student Aid Report (SAR), SAR Acknowledgement, and Institutional Student Information Record (ISIR).

Federal Pell Grant Program

A need-based federal grant program for qualifying undergraduate students (without a first bachelor's degree).

Federal School Code (also known as CSID)

The 6-digit identifier assigned to schools and third party servicers that is common across the Pell Grant and Direct Loan programs.  Also known as the Common School Identifier, ARC's CSID is 001232.

Federal Stafford Loan (Subsidized)

A federally subsidized, low-interest student loan funded by a private lender and awarded on the basis of financial need. (This loan was part of the Federal Family Education Loan (FFEL) Program, which was discontinued in 2010. Although such loans are still being serviced and repaid, new Federal student loans are being made only under the Federal Direct Loan Program.) Compare Federal Direct Stafford Loan.

Federal Supplemental Educational Opportunity Grant (FSEOG) Program

The Federal Supplemental Educational Opportunity Grant (FSEOG) Program awards grants to financially needy students attending institutions of higher education to help them pay their educational costs. Priority in awarding FSEOG funds is given to students who have exceptional financial need and are Federal Pell Grant recipients. See also Campus-Based Programs.

Federal Work-Study (FWS) Program

The Federal Work-Study (FWS) program is a federal Campus-based employment program that provides part-time employment for students with financial need.  Priority in awarding FSEOG funds is given to students who have exceptional financial need and are Federal Pell Grant recipients.  See also Campus-Based Programs.

Financial Aid History

Information on a student's previous financial aid, defaults, and overpayments, available on the NSLDS Web site. This information is also reported on the Student Aid Report (SAR) and the Institutional Student Information Record (ISIR). See National Student Loan Data System (NSLDS).

Fiscal Year

Any 12-month period established for accounting purposes, for example, July 1, 2013 to June 30, 2014.

Free Application for Federal Student Aid (FAFSA)

The application that must be completed in order to receive federal student aid. The FAFSA gathers data needed to calculate the expected family contribution (EFC) and to determine federal student aid eligibility. See also need analysis.

FSA Handbook

A multi-volume annual publication that provides detailed information on the administration of the Title IV federal student aid programs, as well as on institutional eligibility to participate in these programs.

Full Data Element Formula

A formula that uses the full range of data elements in calculating a student's Expected Family Contribution (EFC) under the Federal Need Analysis Methodology. Also called the regular formula. See also Expected Family Contribution (EFC). Compare with simplified formula.

Full-Time Student

To be considered full-time for federal student aid purposes, undergraduate students must enroll in:

See also half-time student.

Gainful Employment

In order to be eligible for funding under the Title IV programs, an educational program must lead to a degree (associate, bachelor's, graduate, or professional) or prepare students for "gainful employment in a recognized occupation."  Collectively, reference to programs as Gainful Employment programs includes all non-degree vocational programs offered by the institution.

GED

See recognized equivalent of a high school diploma.

Gift Aid

Financial aid that does not have to be repaid or earned through work. Generally, gift aid is in the form of a grant or scholarship. Compare self-help aid.

Grace Period

The time period before a federal student loan borrower must begin or resume repaying a loan.

(See FSA Handbook, Volume 2: School Eligibility and Operations or Volume 6: Campus-Based Programs.)

Grant Programs

Gift aid programs that require neither repayment nor a work obligation from students. FSA grant programs for students include:

Half-Time Student

To be enrolled half time, a student must take at least half of the academic course load of a full-time student (as determined by the school).

High School Diploma

A high school diploma is a document recognized by the state in which the high school is located. A foreign high school diploma meets the requirement if it is equivalent to a U.S. high school diploma.

Higher Education Act (HEA)

Federal legislation passed in 1965, and its subsequent amendments and reauthorizations (most recently in 1998), authorizing the majority of the federal student financial aid programs and mandating that the programs be regulated and administered by the U.S. Secretary of Education. Approximately every five years, Congress reauthorizes the act or extends the legislation for up to one additional year. The statute's most current version, as amended, is always the official version of the law.

Independent Student

For receiving Title IV aid, a student is considered independent if he or she:

Compare to dependent student. See professional judgment and dependency override.

Institution of Higher Education

A public or private, nonprofit educational institution located in a state, that:

See also postsecondary vocational institution and proprietary institution of higher education.

Institutional Student Information Record (ISIR)

A federal "output" document that Federal Student Aid's (FSA's) Central Processing System (CPS) sends electronically to state agencies and to the schools specified by the student on the Free Application for Federal Student Aid (FAFSA). The ISIR summarizes the information submitted on the FAFSA and provides the student's expected family contribution (EFC). It also includes full applicant data, information on eligibility matches, National Student Loan Data System (NSLDS) financial aid history, comments, assumptions, and reject reasons. See also Student Aid Report (SAR).

Iraq and Afghanistan Service Grant

Non-need based grant for students whose parent or guardian died as a result of military service in Iraq or Afghanistan after September 11, 2001.

Late Disbursement

A disbursement may be made to an ineligible student who has withdrawn or otherwise ceased attendance.  if the student became ineligible only because of a change in enrollment status and he or she is otherwise eligible for the funds.

In addition, other conditions must be met depending on the FSA program from which the late disbursement is to be made.

Less-Than-Half-Time Student

To be enrolled less than half time, a student must be taking less than half the minimum course load of a full-time student (as determined by the school). Compare full-time student, half-time student, and three-quarter-time student.

Loan

A loan is borrowed money that must be repaid according to the terms of a signed promissory note.

Master Promissory Note (MPN)

The legal document that requires a federal student loan borrower to repay the funds borrowed. It may be used for several loans. See also Electronic Master Promissory Note (eMPN).

Means-Tested Federal Benefit Programs

These are defined as mandatory spending programs of the Federal Government, other than a program under Title IV, in which eligibility for the program's benefits or the amount of such benefits, are determined on the basis of income or resources of the individual or family seeking the benefit. Programs providing such benefits include:

 

National Student Loan Data System (NSLDS)

The ED database that collects and maintains student loan and grant data on Title IV federal student aid recipients. Also houses gainful employment reporting. See also Enrollment Reporting.

Nationally Recognized Accrediting Agency or Association

An independent organization that monitors schools' practices and that certifies or approves schools to operate and/or offer certain programs of study. For schools participating in Title IV programs, these organizations must be recognized by the U.S. Secretary of Education. See also accrediting agency.

Need

The difference between a student's cost of attendance (COA) and what the student's family is able to pay-the expected family contribution (EFC). The COA minus the EFC equals the student's financial need. Also see need analysis.

Need Analysis

The statutorily defined method of analyzing household and financial information to determine a postsecondary student's need for federal student aid. Also known as the Federal Methodology or FM. See also cost of attendance (COA), Expected Family Contribution (EFC), Federal Need Analysis Methodology, and Free Application for Federal Student Aid (FAFSA).

Output Document

A record of application data and need analysis generated by ED's Central Processing System (CPS) as a result of processing an application for federal student aid. See Student Aid Report (SAR), Student Aid Report (SAR) Information Acknowledgment, and Institutional Student Information Record (ISIR).

Over-award

A condition that exists when a school awards financial assistance to a student that, in combination with the resources available to that student, exceeds the difference between the student's cost of attendance (COA) and expected family contribution (EFC).

Overpayment

Any federal student aid paid in excess of the amount the student is eligible to receive. Except for Federal Work-Study funds (which are earned) the student must repay an overpayment unless adjustments can be made to eliminate the overpayment within the same award year.

Packaging

The process of assembling one or more financial aid awards (loans, grants, scholarships, and employment) for a student; also referred to as award packaging.

Payment Period

Generally, an academic period for which a specific payment of Title IV aid is made available to a student. The time period at ARC for the school's academic program is calculated on a term-based credit hour.  This definition is found in 34 CFR 668.4.

Period of Enrollment

The period for which federal student aid funds are intended. The period of enrollment must coincide with a bona fide academic 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). 

Personal Identification Number (PIN)

A unique identifier that lets students access or change their personal information in various ED systems. Similar to a bank PIN, it should be kept secure and private.

Students and parents can obtain a PIN at ED's PIN Registration Web site, www.pin.ed.gov.

Prescreening

The initial match of FAFSA data that CPS performs against the NSLDS database to identify federal student aid applicants who are in default, owe overpayments, or have exceeded maximum loan limits. Prescreening is performed before CPS processing of FAFSA data is complete.

Primary EFC

The Expected Family Contribution (EFC) that appears on the first page of the SAR or ISIR.

Priority Deadline

The latest date a school recommends that students apply for financial aid for the award year to be able to receive maximum consideration for institutional funds.  Many schools award the bulk of their institutional financial aid to students who apply by this deadline.

Processing Period

The time allowed for completing the processing transactions for Title IV funds for one award year.

Example: For the award year July 1, 2011 to June 30, 2012, the financial aid processing period is January 1, 2011 through June 30, 2012. Aid applications must be submitted during that time, although corrections and other changes can be submitted until a specified date in middle to late September that varies each year.

Professional Judgment

A provision in the law allowing financial aid administrators to make individual adjustments to override a student's dependency status (from dependent to independent), to adjust the components of a student's cost of attendance (COA), and to adjust the data elements used to calculate the student's Expected Family Contribution (EFC). Professional judgment can only be used on a case-by-case basis and for exceptional reasons, must be documented in the student's file, and must be allowable under the ARC Policy and Procedure manual.  Professional judgment cannot be used to circumvent the law or Title IV regulations.

Program Participation Agreement (PPA)

The Program Participation Agreement (PPA) is the agreement between the school and the Department governing the school's participation in the Title IV programs.

Public Institution

A school maintained at public expense and under public control.

Recognized Equivalent of a High School Diploma

Generally, a recognized equivalent of a high school diploma is either a GED or a state certificate (received after the student has passed a state authorized test) that the state recognizes as being equivalent to a high school diploma.

Regular Student

A person enrolled or accepted for enrollment in an eligible program at an eligible postsecondary institution for the purpose of obtaining a degree or certificate offered by that institution.

Renewal FAFSA

A FAFSA application that is pre-populated with the prior-year data so that students who applied in the previous year do not have to complete an entirely new application. See also Free Application for Federal Student Aid (FAFSA).

Repayment

A period of time when a federal student loan borrower is required to make payments on the loan according to a schedule agreed to by the lender.

Requirement to file IRS Form 1040

Persons who are not required to file a Form 1040 comprise those who don't have to file a return at all and those who are eligible to file a 1040A or 1040EZ (i.e., those who have a taxable income of less than $100,000, do not itemize deductions, do not receive income from their own business or farm, and do not receive alimony or capital gains). This category also includes filers of tax returns for Puerto Rico, Guam, American Samoa, the Virgin Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and Palau.  The Financial Aid Office will receive the student's tax return transcript from the IRS after the student files the 1040.

Return of Title IV Funds

When a student withdraws from school without completing a payment period or period of enrollment, the school must determine the amount of Title IV funds "earned" for the portion of the payment period or period of enrollment the student attended. Unearned federal student aid must be returned. Earned aid that the student has not yet received must be offered to the student by the school as a post-withdrawal disbursement.

Satisfactory Academic Progress (SAP)

A satisfactory rate of student course completion determined using qualitative and quantitative measures. By law, schools whose students receive Title IV funds must establish policies for monitoring satisfactory academic progress (SAP).  Schools must now, at a minimum, check SAP at the end of each payment period for students in programs lasting one year or less, and for all other programs at least annually and corresponding with the end of a payment period.  The ARC SAP policy is found online at http://www.arc.losrios.edu/Support_Services/Financial_Aid/Satisfactory_Progress_Policy.htm

SAP Appeal

If you have extenuating circumstances that negatively affected your academic progress, you may complete the Financial Aid Appeal for further evaluation (click here more information). Submission of an appeal does NOT GUARANTEE the reinstatement of students' financial aid. Therefore, students should be prepared to pay for their books, and other school related expenses pending the outcome of their appeal

Self-Help Aid

Financial aid that must be repaid (loans) or is earned through employment. Compare gift aid.

Semester

A standard of measurement in higher education used to group weeks of instructional time in the academic calendar. A semester provides about 15 weeks of instruction and a semester program generally includes a fall and spring term, and often a summer term. Compare quarter and trimester.

Source Document

For cost of attendance (COA) purposes, the original supporting data used by the school to determine an item's cost or estimated cost.

Student Aid Report (SAR)

A federal "output" document sent directly to a student from Federal Student Aid's (FSA's) Central Processing System (CPS) that summarizes information submitted on the Free Application for Federal Student Aid (FAFSA) and provides: the student's expected family contribution (EFC); information on eligibility matches; and National Student Loan Data System (NSLDS) financial aid history, comments, assumptions, and reject reasons. If the student provided an email address on the FAFSA, FSA will send an email instructing the student how to access the SAR online. A student who applies using a paper FAFSA, but does not give an email address, will receive a paper SAR. A student who applies electronically but does not give an email address will receive a paper SAR Acknowledgement. See also federal output document, Institutional Student Information Record (ISIR).

Student Aid Report (SAR) Acknowledgement

A federal "output" document, similar to the Student Aid Report (SAR), which is sent to a student who applies electronically but provides no email address. The SAR Acknowledgement cannot be used as a correction document.

Student Consumer Information

Information that Title IV institutions are required to disclose to their consumers, enrolled students, and prospective students, including:

Term-Based Program

A degree or certificate program that uses standard semesters, trimesters, or quarters to divide the academic year.

Third-Party Servicer

An individual, state, or organization that contracts with a school to administer any aspect of the school's Title IV program participation.

Three-Quarter-Time Student

To be enrolled three-quarter-time, a student must be taking at least 75 percent of the academic course load of a full-time student (as determined by the school). Compare full-time student, half-time student, and less-than-half-time student.

Title IV Federal Student Aid

Financial aid programs for postsecondary students, authorized under Title IV of the Higher Education Act of 1965, as amended (HEA). The programs are administered by the U.S. Department of Education. Title IV federal student aid programs offered at ARC are:

Transaction Number

A two-digit number that identifies how many times an applicant's data is processed by ED's Central Processing System (CPS). The CPS generates a new transaction number (and a new output document) each time an applicant's data is processed. For example, the initial processed FAFSA creates Transaction 01, the first processed correction creates Transaction 02, and a subsequent processed correction creates Transaction 03. The transaction number is located in the lower right-hand corner of the applicant's SAR, after the applicant's Social Security number and the first two letters of the last name.

Transfer Student Monitoring

A function of the National Student Loan Data System (NSLDS) that monitors student transfers from one school to another. Following a student transfer, the new school sends identifying information about the student to NSLDS, and will then receive data updates that will allow the school to disburse and/or deliver aid to the student. (Schools were previously required to obtain financial aid history information from the previously attended schools, through a paper Financial Aid Transcript. This is no longer required.)

Undergraduate

A postsecondary student who does not have a first baccalaureate degree or a first professional degree.

Valid ISR

An ISIR on which all the information reported on a student's FAFSA is accurate and complete as of the date the application is signed. (34 CFR 668.2, General Definitions)

Verification

The process a school follows to check the accuracy of information reported by a student on the Free Application for Federal Student Aid (FAFSA). If an application is selected for verification by the Central Processing System (CPS), it will be indicated on the resulting Student Aid Report (SAR): an asterisk will appear to the right of the applicant's Expected Family Contribution (EFC). Schools may also choose to verify other applications. Whether the application is selected by the CPS or chosen for verification by the school, the school verifies the application information by comparing it to documentation provided by the student (and parents, if required).

Verification Items

Specific federal student aid application information that must be checked for accuracy during the verification process. See also conflicting information and verification.

Work-Study

An employment program that provides paying jobs for students who need work to earn a portion of their education expenses. The Federal Work-Study (FWS) Program is an example of such a program that is federally funded.