Glossary

Academic Year
The fall and following spring semester. If a student attends in the following summer semester, it is treated as a part of that academic year.

Accrued Interest
Once a loan is disbursed, a percentage of the principal amount loaned is charged to the borrower as interest. With student loans, that interest is allowed to accrue while the borrower is a student. This means they are not required to pay the interest until a later date, but the amount of interest owed will grow. For student loans, interest calculation is based on the original principal balance, known as simple interest, rather than a combination of the principal and the accrued interest, known as compounding interest.

Adjusted Gross Income (AGI)
The total of an individual's income (wages, salaries, interest, dividends, etc.) on a tax return after all allowable deductions have been subtracted.

Aggregate Loan Limit
The maximum Federal Direct Student Loan amount, subsidized and unsubsidized, that students attending a college are allowed to borrow throughout their educational careers. Also known as "cumulative loan limit." 

Agreement to Serve 
Students who receive the federal TEACH Grant must complete an Agreement to Serve each academic year they receive the grant. The Agreement to Serve is a legal document in which the student agrees to teach a high-need subject at a low-income school for four years in the eight years after they graduate. Also see “TEACH Grant.”

Aid Year
The period from July 1 of one year through June 30 of the following year, which corresponds with a FAFSA application. See “Academic Year.”

Alternative Loan
An optional loan resource for college students, available through private agencies outside of MSU that are willing to lend to students for educational purposes. This type of loan is not usually based on financial need. Deferment of loan principal may be allowed while the student attends school; however, the student may be required to pay the interest while in school.

America Counts and America Reads
Federally funded programs that allow college students to work with children who need assistance in mastering the fundamentals of math and reading. College students must file a FAFSA and be granted a Federal Work-Study award to qualify for a paid position as a reading or math tutor in a local elementary school.

American Opportunity Credit
A federal income tax credit available to taxpayers financing a student's college education. The credit is based on a student's college tuition and fee charges, minus grants and scholarships, and other tax-free educational assistance.

AmeriCorps Program
A program established through the National and Community Service Trust Act of 1993 designed to reward individuals who provide community service with educational benefits. A college student can work before, during, or after college, and can use the funds to pay current educational expenses or to repay federal student loans.

Annual Loan Limit
The maximum Federal Direct Student Loan amount, subsidized and unsubsidized, college students are allowed to borrow during an academic year. The annual loan limit for a Federal Direct Student Loan is determined by a student's grade level, which in turn is based on how many credits a student has earned toward that degree or certificate.

Annual Percentage Rate (APR)
The actual rate of simple interest (interest computed on the original loan principal only) paid by the borrower of a loan.

Anticipated Aid
Aid eligibility that is in an “Awarded” status in the MSU student financial aid portal but has not been disbursed to a student’s account. Since federal aid cannot be paid until ten days before the term begins, it will show as Anticipated when the bill is produced. Loans listed as Anticipated may not disburse until additional action is taken by the student (e.g., signing an MPN, entrance counseling). Once the award is disbursed, it is removed from the Anticipated Aid section of the bill. All anticipated aid is removed from the bill near the “last day to drop with refund.” 

Assessed Credits - Billing
Credits for which you are charged tuition. Each class has a published deadline to receive a 100% tuition refund, typically 1/4 of the way through the course. If you drop a class before the end of that period, you are no longer charged tuition for it. If you drop a class after the end of that period, you continue to be charged tuition whether the course shows on your transcript at the end of term or not. 

Assessed Credits - SAP
Credits granted by MSU for earning a grade on a test associated with a high school course (A.P. or I.B.) as well as credits granted for life learning experiences. Assessed credits are counted as attempted credits in determining both the Pace and Maximum Timeframe components of SAP. These credits do not affect the MSU GPA. 

Assets
Items of value owned by students or parents that must be reported on the FAFSA. These are financial holdings such as cash on hand in checking and savings accounts, trust funds, stocks, bonds, other securities, real estate (excluding the family home), or net value of a business or farm. The value of retirement plans is not included.

Attempted Credits
In determining whether a student is maintaining satisfactory academic progress (SAP), one measure is whether the student has successfully completed at least 67% of the credits attempted. Attempted credits include all courses for which a grade was issued, plus courses that were dropped after the “last day to drop with refund” and any transfer or assessed credits. Credits in classes for which a Visitor (V) grade marker was recorded are not included in credits attempted.

Award Year
See “Academic Year.”

Awarded Aid
See “Estimated Aid.”

Borrower
An individual who agrees to take on the obligation of repaying a loan and accepts the terms of the loan by signing a promissory note. For financial aid purposes, students are borrowers of Federal Direct Student Loans, subsidized and unsubsidized. Parents of undergraduates who qualify to take out a parent PLUS Loan are the borrowers of the Federal Direct PLUS Loan. Graduate and professional students are the borrowers for both Federal Direct Student Loans and graduate Federal Direct PLUS Loans.

Budget
See "Cost of Attendance.”

Cancellation (discharge) of a Federal Loan
The result of a borrower meeting specific requirements established by law that release the borrower from all obligation to repay a federal educational loan. Cancellation results in the principal and interest being paid in full by the federal government. Cancellation is not automatic, and the appropriate loan agency must be contacted for more information.

Capitalization of Loan Interest
When a student loan enters repayment, the accrued interest may be subject to capitalization. This means the interest owed is added to the principal balance and from that point forward interest accrues on the adjusted principal. In essence, interest is being paid on the interest.

Census Date
See “Pell Recalculation Date.”

Contributor
A contributor refers to anyone (student, the student's spouse, a biological or adoptive parent, or the parent's spouse) who is required to provide information on the FAFSA form. A student's or parent's answers on the FAFSA form will determine which contributors (if any) will be required to provide information. Students or parents will invite a contributor to complete their portion of the FAFSA form by entering the contributor's name, date of birth, SSN, and email address.

Co-Signer
An individual who, by signing a loan promissory note along with the borrower, becomes equally responsible for the loan debt.

Completed Credits
Credits for which a passing grade is earned plus credit earned through transfer or assessment. For a class that was repeated, only the credits associated with the last enrollment are counted in the total number of credits passed.

Cost of Attendance (COA)
An estimate of a student’s educational expenses for an academic year, sometimes referred to as a “budget,” which serves to limit the total aid that a student can receive. It includes an estimate of direct costs which are paid to MSU and indirect costs which are expenses that are not paid to MSU. The COA estimates expenses for tuition and fees, books and supplies, food, housing, transportation and miscellaneous personal expenses (e.g., cell phone, clothes, entertainment, personal care products). If a federal student loan is taken out it will also include the origination fees associated with the loan. COA can vary by program, residency status and other factors.

Current Credits
Credits for which you are enrolled on your official schedule as of today.

Default on a Loan
The failure of a borrower to repay a loan according to the terms agreed to when the promissory note was signed. Usually, default is established once loan payments are more than 270 days past due. Defaults are recorded on the permanent credit record and can result in legal consequences as well the loss of eligibility for additional federal student aid.

Deferment of a Federal Loan
A limited and specified period during which a borrower of a federal educational loan is not required to make regular monthly payments. To qualify for deferment, the borrower must meet one or more of a number of requirements established by law. Interest will not accrue for subsidized loans during the period of deferment; however, interest will accrue for unsubsidized loans. Deferment is not automatic, and the appropriate loan servicer must be contacted for more information.

Delinquent on a Loan
The failure of a borrower to make a loan payment by the due date. Delinquencies greater than 30 days are reported to national credit bureaus. Also see “Default on a Loan.”

Dependency Override
Students who do not meet one of the conditions to automatically be considered independent on the FAFSA may be declared independent by a financial aid administrator exercising professional judgment. See also “Unusual Circumstances.”

Dependent Student
A college student who does not meet the criteria, as defined by federal law, to be considered an independent student for the purpose of receiving financial aid. A dependent student must report parental income and asset information on the FAFSA to be used in the calculation of the Student Aid Index (SAI). The philosophy of the federal government is that the student and parents have the primary responsibility for funding the student's college education, with financial aid being a supplement to the family contribution. The determination of whether a student is dependent or independent is made by answering a series of questions on the FAFSA.

Direct Costs
Educational expenses that appear on MSU billing statements and are owed to MSU, including tuition and fees, and university housing and meal costs of any type (residence halls or university apartments).

Disbursement
The process by which financial aid is applied toward a student's educational and related living expenses. Any credit balance in excess of charges owed to MSU is refunded to the student to be used for other educational expenses.

Endorser
An individual who, by signing a loan promissory note along with the borrower, becomes equally responsible for the loan debt.

Enrollment
Students who have registered for an upcoming term are considered to have enrollment in that term. Financial aid will disburse prior to the start of the term if a student is enrolled. Also see "Registration.”

Estimated Aid
MSU’s financial aid awarding system predicts aid eligibility for current and future academic years based on the information it has received. This will appear in the student portal with a status of “estimated” or “projected.” This is available for planning purposes. Once a student has enrolled for the upcoming term and pending tasks have been completed, the status will turn to “awarded.” Students apply for aid annually.

FAFSA (Free Application for Federal Student Aid)
The form that a student must complete each award year to be considered for financial aid. The FAFSA collects income and asset data that allows for a determination of the Student Aid Index (SAI). Once the applicant submits the FAFSA, the data is prepared for release to the schools and state agencies listed on the application. The school or agency is then responsible to determine the student's financial aid eligibility.

FAFSA Submission Summary (FSS)
The official notification from the federal government that summarizes the information submitted on the FAFSA. The document is paper if the FAFSA was submitted on paper and is a secure web document if the FAFSA was completed online. The FSS displays the entered data, the Student Aid Index (SAI) and any special messages related to the student's application. Review the FSS to ensure it is accurate and to complete any outstanding requirements.

Federal Direct Student Loan
A subsidized or unsubsidized loan borrowed by a student from the federal government to pay for educational expenses.

Federal Student Aid Information Center
The government agency to contact with general questions about the federal financial aid application process. Counselors at this number (1-800-433-3243) provide assistance with creating an FSA ID and completing or correcting the FAFSA.

Federal Supplemental Educational Opportunity Grant (FSEOG/SEOG)
A federal grant program offered to high-need students who are working toward a first bachelor's degree at a college. It is designed to assist students with the least ability to contribute toward their basic educational expenses. This grant is considered gift assistance and does not require repayment or a work obligation.

Federal Work-Study
An employment program administered by colleges that provides part-time jobs for students with financial need. To utilize the award, a student finds a job with an eligible nonprofit organization (i.e., most on-campus and some off-campus employers). Community service work and work related to a student's course of study is encouraged. Student employees receive a paycheck every other week and are responsible for using the money to help pay educational expenses.

Financial Aid
The general term that describes financial assistance offered to a student to help reduce the cost of attending college. Assistance can be in the form of gift aid (scholarships and grants), loans or work programs, and is funded by federal, state, institutional and private sources. They are meant to supplement what the student (and parents, if dependent, or spouse, if married) is expected to contribute toward educational expenses.

Financial Aid Administrator (FAA)
Staff in the financial aid office who have the authority to make determinations of aid eligibility. In limited situations, staff in the Spartan One-Stop perform some of the duties of an FAA.

Financial Aid Offer
Financial assistance offered to a student to help reduce the cost of a college education. Types of awards include scholarships, grants, loans or work programs, and are funded by federal, state, institutional and private sources. The combination of all awards is often referred to as the financial aid "package” or “award.” Students who apply for financial aid at MSU must be admitted to MSU before an offer is produced.

Financial Need
To determine if a student has financial need, the Office of Financial Aid subtracts the Student Aid Index (SAI) from the Cost of Attendance (COA). If the result is a positive number, then the student is said to have documented financial need. This, combined with the receipt of other aid, is used to determine whether a student qualifies for aid programs designated as need-based.

Forbearance of a Federal Loan
A limited period during which a borrower of a federal educational loan is permitted to postpone or reduce loan payments due to hardship. Forbearance may be given for circumstances that are not covered by deferment. To qualify for forbearance, the borrower must meet one or more requirements established by law. The loans accrue interest during the period of forbearance. Forbearance is not automatic, and the appropriate loan servicer must be contacted for more information.

Free Application for Federal Student Aid
See “FAFSA.”

Gift Aid or Gift Assistance
Funding for college, such as grants or scholarships, that does not require repayment or a work obligation.

Grace Period
The period that begins the day a borrower is no longer enrolled at least half-time. The grace period is six months for Federal Direct Student Loans, subsidized and unsubsidized, and nine months for Federal Perkins Loans. During the grace period, repayment of loan principal (and, in some cases, interest) is not required. PLUS Loans do not have a grace period.

Grant
Funding for college, usually awarded based on need, that does not require repayment or a work obligation. Federal Title IV grant programs include the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG).

Guest Access
MSU students can give formal permission to allow individuals access to their records in MSU’s Student Information System (SIS). Granting guest access allows another individual to take actions in SIS on behalf of the student, such as paying bills, viewing class schedules or checking academic progress. Instructions for granting guest access can be found here: https://sis.msu.edu/help/guest-access.html .

Higher Education Act (HEA) of 1965
Landmark national higher education legislation passed by Congress and signed by President Lyndon B. Johnson in 1965. Title IV of the HEA authorizes the majority of the nation's federal financial aid programs and mandates that they be regulated and administered by the U.S. Secretary of Education. The HEA is effective for approximately five years, requiring Congress to reauthorize it, that is, review and then renew, terminate, or amend existing programs. The statute's most current version, as amended, always stands as the official version of the law.

Homeless/At-Risk of Homelessness

The FAFSA asks if a student is an unaccompanied youth who is homeless or at risk of homelessness. Confirmation of homelessness requires documentation from an eligible agency or determination by a Financial Aid Administrator (FAA). Simply choosing to live independently of one’s parents or having difficulty paying one’s rent in and of themselves are not necessarily grounds for a determination of homelessness.

Incomplete Credits
Credits you did not complete during the scheduled term of instruction; grades indicate that they are incomplete, deferred, or extended (I, DF, or ET).  These are referred to for financial aid purposes as “incomplete credits.” Incomplete credits are counted as unsuccessful attempted credits for the purpose of determining Satisfactory Academic Progress (SAP).

Independent Student
For financial aid purposes, a student who meets one or more of the following criteria:

• Age 24 by December 31 of the award year for which aid is being pursued
• Orphan or ward of the court after turning age 13
• Active-duty member or veteran of the U.S. Armed Forces
• Graduate or professional student
• Married prior to signing and filing the FAFSA
• Has children or other people (other than a spouse) who live with the student and receive more than half their support from the student now and during the upcoming aid year.
• At any time since age 13 was in foster care
• Was an emancipated minor as determined by a court in the student's state of legal residence.
• Was in a court-ordered legal guardianship with someone other than their parent or stepparent as determined by a court in the student's state of legal residence.
• Is determined by a qualified third party to be an unaccompanied youth who is homeless or at risk of being homeless
• Deemed to be independent by the school's financial aid administrator based on unusual circumstances. Contact staff in the Spartan One-Stop to discuss your unusual circumstance with an advisor. (Note: The federal government does not consider a parent's refusal to provide financial assistance or to provide the required FAFSA information a valid reason for this situation.)

Indirect Costs
Educational expenses that do not appear on MSU billing statements and are owed to an establishment or business other than MSU, including off-campus housing (rent, food, utilities), books and supplies, or clothing and personal care items.

Interest on a Loan
The amount a lender charges a borrower for using money. In regard to federal student loans, the interest that is accruing while the borrower is enrolled at least half-time, during the grace period and during any other approved deferment period is: a) paid by the federal government on the borrower's behalf for the subsidized Federal Direct Student Loan and Federal Perkins Loan, or b) billed to the student for the unsubsidized Federal Direct Student Loan. For all loan programs, once repayment of loan principal begins, interest is charged.

Internal Transfer Credit 
Coursework taken at MSU used to meet degree requirements for a second academic program at a different classification. For instance, dually enrolled students might use graduate courses to complete undergraduate degree requirements. Some of those same credits may then be allowed to meet requirements for the graduate degree. Internal transfer credits are counted as attempted credits in determining both the Pace and Maximum Timeframe components of SAP; however, they do not affect the GPA of the program into which they are transferred.

Legal Guardian 
Having a court-ordered legal guardian is one of the conditions that will make a student independent on the FAFSA. For these purposes, a student’s parent is not considered a legal guardian, even if it is court-ordered. Students who state they have a guardian will be asked to provide copies of the court documentation if there are not other conditions that automatically make them independent (e.g., age). Since terminology varies from court to court, the determination as to whether a student meets this condition will be made upon a close reading of the legal documents. If the paperwork is assigning custody, or is voluntary in nature, the student will not be deemed to have a legal guardian for FAFSA purposes.

Lender
The organization that furnishes loan funds, whether it be a bank, college, the government, or another establishment.

Lifelong Education
The enrollment status of a student who is attending MSU but has not been admitted to a degree-granting program. Students in this category are ineligible for federal Title IV financial aid.

Lifetime Learning Credit
A federal income tax credit available to taxpayers financing a student's college education. The credit is based on a student's college tuition and fee charges, minus grants and scholarships, and other tax-free educational assistance.

Loan
Money borrowed to assist with the financing of a student's college education. By signing a promissory note, the borrower promises to repay a specified amount under prescribed conditions. The lender usually charges interest for use of the money, and the amount borrowed is typically repaid with interest over a period of time.

Loan Entrance Counseling
Loan entrance counseling is online instruction about a student’s rights and responsibilities as a student borrower. It must be completed the first time a student takes out a federal student loan in order for the loan to disburse. The instruction is available at studentaid.gov. Once a student completes the course, the completion status will be forwarded to MSU.

Loan Exit Counseling
When signing the MPN, a student borrower agrees to complete loan exit counseling when they cease to be enrolled at least half-time. Like loan entrance counseling, it is online instruction about a student’s rights and responsibilities as a student borrower. The instruction is available at studentaid.gov. Upon completion of the exit counseling if a student has any outstanding questions, they should contact either their loan servicer or staff in the Spartan One-Stop.

Loan Period
The time frame covered by an educational loan, generally two semesters in length, beginning at the start of the one semester and running through the last day of the next consecutive semester. However, a loan period can also be one or three semesters in length.

Loan Servicer
The agent designated to track and collect a loan on behalf of a lender.

Master Promissory Note (MPN)
The contract between a lender and a borrower that contains the terms and conditions governing the loan, including the repayment obligations. It becomes legally binding when signed (executed) by the borrower. The borrower promises to repay the loan with interest in periodic installments. The Master Promissory Note allows borrowing under the same agreement over a ten-year period of time.

Medical Unsubsidized Federal Direct Student Loan
Students in the Osteo Med, Human Med and Vet Med programs have higher annual and aggregate loan limits for the unsubsidized Federal Direct Student Loan. The additional eligibility is seen in the student portal as a second loan, marked “medical.” The student bill will show it as a separate disbursement, but it will not have the “medical” notation on it. 

National Student Loan Data System (NSLDS)
A federal government database which houses a student's federal educational loan borrowing history. All lenders are required to report a student's loan information to this database system.

Needs Analysis
The federally regulated method of determining a family’s relative financial strength. The needs analysis formula uses income and asset information, as provided on the FAFSA, to calculate a Student Aid Index (SAI) which is used by aid offices to determine eligibility for financial aid.

Need-Based Aid
Any form of monetary assistance awarded by a college on the basis of a student's demonstrated financial need. Also see "Financial Need".

Origination Fee 
A percentage of a loan amount charged by the lender for the processing of the loan. Federal student loans have an origination fee; therefore, the amount you may receive as a disbursement may be slightly lower than the amount you accept. The corresponding amount of the origination fee will also appear in the Cost of Attendance (COA), since an origination fee is a reduction of potential aid a student can receive.

Passed Credits
See “Completed Credits.”

Pell Grant
The Federal Pell Grant program is gift aid offered to high-need students who are working toward a first bachelor's degree. Receipt of the grant is limited to twelve full-time semesters or the completion of a bachelor’s degree, whichever comes first.

Pell Recalculation Date
Federal Pell Grants and federal TEACH Grants are automatically adjusted up and down when a student drops or adds classes through the Pell Recalculation Date (PRD). The day after the PRD, adjustments are not made to the federal grants unless it is to reduce the award because the student failed to begin attending a course. The PRD for the fall and spring semesters corresponds to the ¼ point in the term known as the “last day to drop with refund” for courses that run the length of the semester. This is also referred to as the “census date.”  In the summer, the PRD is associated with the ¼ point for the second session, after session 1 is complete. So, the adding or dropping of any session 1 courses will result in adjustments to the grants. Some institutional or state grants also use PRD to determine award amounts.

Perkins Loan
Federal student loan program that was discontinued by Congress in 2018.

PLUS Loan
The Federal Direct PLUS Loan may be borrowed by a parent on behalf of an undergraduate student or by a graduate student on his or her own behalf. To be eligible, a borrower cannot have an adverse credit history. Both a FAFSA and a PLUS Loan application must be completed at studentaid.gov before MSU can determine eligibility for the loan. There are no aggregate loan limits for PLUS loans.

PLUS Loan Replacement
If a parent’s application for a Federal Direct PLUS Loan is denied due to an adverse credit history, the student has the option of accepting PLUS loan replacement funds. The student is offered additional unsubsidized Federal Direct Student Loan funds at the annual and aggregate loan limits that are available to an undergraduate independent student.

Principal
The amount of money borrowed through a loan, excluding interest or other charges (unless interest is capitalized).

Private Student Loan
See “Alternative Loan.”

Professional Judgment
Financial aid administrator discretion, based on the special or unusual circumstances of a student, to change data elements used in determining financial aid eligibility.

Projected Aid
See “Estimated Aid.”

Refund
The credit balance, usually made up of financial aid, exceeding the charges a student owes to MSU for a particular semester. Financial aid must first be used to pay direct costs. If excess remains, a refund will be released to the student either in the form of a paper check, or as a direct deposit to the student’s personal bank account (if authorized with the MSU Controller's Office).

Registration
The process an MSU student completes to obtain courses for a particular semester. Also see “Enrollment.”

Repayment
The process of paying back an educational loan to the lender (e.g., college or federal government) in periodic (usually monthly) installments of principal and interest. A choice of repayment plans or loan consolidation may be available. A federal educational loan must be repaid even if the student doesn't complete a school's program of study, isn’t satisfied with the school or degree, or doesn't obtain employment after completing the program of study.

Repeated Credits
When a student retakes a class, each attempt is counted in the SAP Pace calculation, but it will only be counted as earned credit once. If a student retakes a class they previously passed, typically to improve a grade, they can only receive federal aid to do so one more time. Subsequent attempts will have the course removed from the determination of aid eligibility.

Satisfactory Academic Progress (SAP)
Students receiving federal financial aid are required to make timely progress towards the completion of their degree/certificate. This policy, known as Satisfactory Academic Progress (SAP), looks at a student’s grade point average (GPA), and the percentage of credits they have successfully completed, known as Pace or completion rate. Students that fail to make satisfactory academic progress (SAP) may be placed on warning or financial aid disqualification.

The SAP regulations also require that students complete their degree within a maximum timeframe. For undergraduate students, this is measured in attempted credits, not to exceed 150% of the length of their degree. For graduate students, the maximum timeframe is the maximum outlined in the Academic Programs Catalog, typically five years for master’s degrees and seven years for doctoral degrees. 

SAP regulations require that a student’s complete academic record be considered regardless of whether the student received aid each term they were enrolled. MSU reviews a student's SAP status after every fall, spring and summer term.

School Code
For financial aid purposes, the federal ID number assigned to colleges by the U.S. Department of Education. MSU's school code, also known as the Title IV Code or Federal School Code, is 002290.

Scholarship
A form of educational financial assistance that does not require repayment or a work obligation. A "merit-based" scholarship is awarded to a student who demonstrates potential for distinction, usually in academic performance. A "need-based" scholarship is awarded to a student who demonstrates financial need. Some scholarships may require both academic proficiency and demonstrated financial need.

Scholarship Search Services
Online databases that help students find sources of funding for college. A student should be wary of any service that guarantees a scholarship, charges a fee, or requires that a credit card or bank account number be provided, since the same information is available for no cost. The U.S. Department of Education does not evaluate private scholarship search services. A student should check the reputation of a service by contacting the Better Business Bureau or a State Attorney General's Office.

Self-Help Aid
Financial aid loan or employment opportunity programs (not scholarships or grants) awarded to a student by a college as a form of educational financial assistance.

Short-Term Loan
A low-interest loan from MSU that requires repayment within 60 days from the date of issue. Registered students may apply and must demonstrate in writing the ability to repay the loan within the 60-day period. The loan is to be used for immediate educational needs such as books and supplies, or similar costs other than tuition payments. A 60-day extension of the loan is possible with a reasonable explanation of why the loan was not paid off within the original period. Normally, the student is required to pay 50% of the original loan amount before being considered for an extension.  Second extensions are subject to the Truth in Lending Act for long-term loans.  Approval for a second extension is rarely granted.

Special Circumstances
The base assumption of the FAFSA is that most people’s financial situation varies very little from year to year. Students for whom this is not a good assumption are considered to have special circumstances. Examples of special circumstances would be a reduction in income due to job loss or a pay cut, death of a parent after filing the FAFSA, or the presence of income on the tax return that occurred in the reported year but has not been received since (e.g., a one-time withdrawal from a retirement plan). Students who believe they have special circumstances that should be taken into consideration in determining their aid eligibility should contact staff in the Spartan One-Stop. 

Statement of Educational Purpose
When completing the FAFSA, a student agrees, under penalty of law, to use federal Title IV financial aid solely for educational expenses. Some students who are selected for verification must reaffirm this by presenting their government issued non-military ID and signing the statement in the presence of an MSU official, as detailed on the form, or a notary public. 

Student Aid Index (SAI)
Based on information provided on the FAFSA, a number used to determine a family's relative financial strength for purposes of qualifying for need-based financial aid. Also see "Financial Need.”

Student Portal
All MSU students use the Student Information System (SIS) to access many key administrative processes, including financial aid, enrollment and billing. Log in to your student portal at student.msu.edu. For help accessing your portal, visit sis.msu.edu.

Subsidized Loan
A type of Federal Direct Student Loan where the interest is paid by the federal government while the student is attending at least half-time, or during periods of qualifying deferment. 

TEACH Grant 
A federal TEACH Grant is technically a forgivable loan. To receive the grant a student must be in specific education majors at MSU and agree to teach a high-need subject in a low-income school for four years in the eight-year period after they graduate. If the student fails to satisfy the teaching requirement, the grant reverts to an unsubsidized Federal Direct Student Loan with interest retroactive to the day it was first disbursed. Students do not have to demonstrate need to be eligible, but there are academic rigor requirements that must be met. 

Title IV Funds
Federal financial aid programs authorized under Title IV of the Higher Education Act of 1965, as amended, and regulated and administered by the U.S. Department of Education. This includes the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), TEACH Grant, Federal Work-Study, Federal Direct Student Loans, both subsidized and unsubsidized, and Federal Direct PLUS Loans.

Transfer Credits
Transfer credits include coursework taken at any other college that MSU accepts for transfer toward a degree program. These credits are counted as attempted credits in determining both the Pace and Maximum Timeframe components of SAP. Grades earned at another college do not affect the MSU GPA. 

Unsubsidized Loan
A type of Federal Direct Student Loan where interest accrues on the outstanding loan balance while the student is in school.  Interest may be paid while the student is attending or may be capitalized.  See "Capitalization of Loan Interest.”

Untaxed Income
Financial resources listed on the FAFSA that are reported to the Internal Revenue Service but not subject to federal taxation. Untaxed income includes tax exempt interest, payments into an IRA, and untaxed portions of pension and IRA distributions. Though technically child support is also untaxed income it is reported on the FAFSA as an asset.

Unusual Circumstances 
If a student does not meet any of the regular conditions on the FAFSA to be independent (e.g., is married), they may be declared independent if they have unusual circumstances. Unusual circumstances exist if the student cannot contact their parents or contacting them would pose a risk to them. If a student indicates they have unusual circumstances on the FAFSA, they will be required to provide documentation to MSU’s Office of Financial Aid corroborating their claims. The student is considered provisionally independent until the documentation can be reviewed, at which time a determination will be made as to whether the student can be declared independent or must file as a dependent of their parents.

U.S. Department of Education
The branch of the federal government that administers the federal financial assistance (Title IV) programs for students attending college.

Variable Fixed Interest on a Loan
Interest rates for Federal Direct Loans (Student and PLUS) change annually. However, the rate in place when funds are borrowed stay with that loan until repaid. For example, if a student borrows a subsidized Federal Direct Student Loan three academic years in a row, they could have three different interest rates.

Verification
The process used to check that information reported on the FAFSA is accurate by comparing it to tax returns or other documentation.