MCC :: Finacial Aid - Glossary of Terms

	How To Apply Financial Aid Eligibility Loans Satisfactory Academic Progress Requirements FAQ’s Return of Funds Policy Cost of Attendance Disbursements of FA funds Glossary of Terms Contact Us

Ability to Benefit –: Basis on which a student without a high school diploma or recognized equivalent may qualify for financial aid. At MCC specific scores from the placement test constitute a student's ability to benefit.

Academic Year –: The school year typically beginning with Summer semester and ending with the Spring semester.

Admission –: The process a student takes to apply to college. Students interested in applying for MCC may contact the Admissions Office to complete the admissions process at (810) 762-0315.

Award Notification –: An official document from the Student Financial Services that indicates the type and amount of financial aid awarded to a student per semester in an academic year.

Cost of Attendance –: The total amount it costs a student to go to school. This amount is used by financial aid when determining eligibility for need-based aid. The cost of attendance or budget includes tuition & fees, books, transportation, room & board and miscellaneous expenses.

Contact Hour –: The number of course class time used to calculate tuition charges. Financial Aid does not use contact hours when determining and calculating financial aid eligibility.

Course Fee –: Fee associated with a specific class for additional costs that are incurred using specialized equipment or laboratory supplies.

Credit Hour –: Credit given for a course completion toward graduation. Financial Aid eligibility is determined and calculated based on credit hours of enrollment.

Date of Record –: Specific date during a semester when credit hours enrolled are reported to the State of Michigan. Credit hours enrolled as of the date of record will be reflected on the academic transcript. See specific semester schedules to determine the date of record for that semester.

Default –: The failure to repay a loan according to the terms of the promissory note. Defaulting on a student loan makes you ineligible to receive financial aid in the future until the default has been cleared.

Deferment –: An approved, temporary suspension of loan payments.

Delinquent –: The failure to make scheduled monthly loan payments before the due date. If several payments are missed, the loan eventually goes into default status.

Dependent Student –: A student that must include parental information (including signature) on their FAFSA application. This status is determined by the answers given in Step Three on the FAFSA application.

Disburse –: Release of financial aid to the student's school account.

Disclosure Statement –: A statement sent from the lender explaining actual costs and terms of the student loan, including interest rate and additional finance charges, and anticipated disbursement dates

Documentation –: Any requested information that verifies or supports the data provided by the student on their FASFA.

Drop –: Withdrawing from one or more courses during the semester.

EFC –: Expected Family Contribution. The dollar amount that a family is expected to pay toward a student's educational costs as determined by the US. Dept. of Education. The federal formula is based on family earnings, assets, number of students in college and size of the family.

Enrollment Fee –: A non-refundable fee charged to students for enrollment each semester.

Enrollment Status –

Determined by actual credit hours of enrollment per semester.

Full-time = 12 credit hours or more
Three-quarter time = 9-11 credit hours
Half-time = 6-8 credit hours
Less than half-time = 1-5 credit hours

FAFSA –: Free Application for Federal Student Aid application form used to determine eligibility for many types of financial aid.

FFELP –: Federal Family Education Loan Program which includes Subsidized and Unsubsidized Stafford loans and PLUS loans.

GPA –: Grade Point Average. Calculated by using the final grade point value received in each course and the number of attempted credits.

Grace Period –: A time period during which the borrower is not required to begin repaying their student loans. This period will begin if the borrower graduates or drops below half-time enrollment. The grace period is six months long for Stafford loan borrowers. PLUS loan borrowers do not have a grace period.

Guest Student –: A student attending one semester with permission from their home school. These students are required to complete a special application process. Final grades are forwarded directly to the home school. Guest students are not eligible for financial aid.

Independent Student –: A student that does not include parental information on their FAFSA application. This status is determined by the answers given in Step Three on the FAFSA application.

Lender –: The financial institution that provides loan funds to be borrowed.

Package –: Award determinations for students made by the Student Financial Services Office.

PLUS –: Parent Loans for Undergraduate Students. A student loan taken out by the dependent student's parent to cover the student's educational costs.

Program of Study –: Declared major or program that a student is pursuing. This can be an associate degree, certificate program or transfer program.

Return of Funds –: Money returned to the U.S. Department of Education for a student who dropped classes prior to the 60% completion date for a semester.

SAP –: Satisfactory Academic Progress as determined by a GPA of 2.0 or better, completion of a minimum of 67% of credit hours enrolled per semester and completing an associate degree within 93 maximum credit hours.

SAR –: Student Aid Report. A report sent to the student by the US Dept of Education showing the results of the student's processed FAFSA application.

Servicer –: A third party organization that maintains a lender's student loan portfolio and is paid a fee to do so.

TIP –: Tuition Incentive Program. State funded tuition program for eligible low-income students who apply while in high school.

Unmet Need –: The difference between the student's educational costs (also known as Cost of Attendance or budget) and their EFC.

Verification –: Process whereby a student must document information reported on their FAFSA and submit it to Student Financial Services. The Federal Processor automatically selects 30% of all applications for verification process. However, Student Financial Services may request verification on any student applicant at its discretion.

Verification Form –: MCC internal form used to collect information needed to complete the verification process.

Withdraw –: Dropping all courses within the semester. Also, often used as a final grade for specific courses dropped after the date of record.

Work Study –: A financial aid program providing students, who demonstrate a financial need, part-time employment during the school year.

Date Modified:
October 31, 2007

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