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Financial Aid Definitions

Academic Year: the period of time used by a school to measure a quantity of study. Kendall College has a borrower based academic year or (BBAY). A student's BBAY starts with their first quarter of attendance and is three quarters in length. The minimum academic year is 30 instructional weeks and 45 credits for degree programs.

Aggregate Level: maximum loan amounts a student can receive for their entire academic career.

Award Year:  Is a Department of Education definition for a period of time to award some types of financial aid. The award year begins July 1 and ends June 30 of the following year.

Cost of Attendance (COA): the COA is the estimated cost for tuition, fees, room and board, books, supplies, transportation, loan fees, and some miscellaneous expenses. A financial aid award package may not exceed the COA.

Credit Balance: any student aid received in excess of tuition and fees for the disbursement period. Credit balances will automatically be issued to students.

Deferment: most federal loan programs allow students to defer or postpone payments on their loans while they are in school and attending at least half-time.

Dependency Status: a student’s dependency status is determined by answers to a set of questions on the FAFSA, and indicates whether the student is considered to be independent or dependent on the student’s parents.  Federal dependency status is not determined by whether or not students live with their parents.  Federal student aid programs are based on the principle that students (and their parents or spouse, if applicable) are considered the primary source of support for postsecondary education.  Dependent students will include information on their parents’ income and assets on the FAFSA, as well as their own information.  Independent students will report only their own income and assets (and those of a spouse, if married).  Not living with your parents does NOT automatically classify you as independent.

Dependent/Independent Student:

Dependent: Regardless of whether a student lives with his or her parents, in most cases for the purposes of Federal financial aid a student who does not meet any of the criteria for an Independent student is considered to be a Dependent Student.

Independent: An Independent student must meet one or more of the following criteria:

  • Be at least 24 years old by December 31 of the award year for which aid is sought,
  • Be an orphan or a ward of the court through the age of 18,
  • Be a veteran of the U.S. Armed Forces,
  • Have children who receive more than half their support from you,
  • Have other dependents who live with you and receive more than half their support from you,
  • Are currently married,
  • Are serving as active duty military for purposes other than training.

An independent borrower can apply for the additional Unsubsidized Direct Loan, but as an undergraduate is not eligible for Parent PLUS loans.  

Disbursement: The delivery of financial aid funds to the student account for the purpose of paying educational costs.

Expected Family Contribution (EFC):  Resulting number from information the student and family submit on the FAFSA. This number indicates per Federal regulation, how much the student and his or her family are expected to contribute to the cost of the student's education for an award year.

FAFSA: Free Application for Federal Student Aid - The student and family provide income, asset, and other information to complete the FAFSA. This application form is required in order to apply for all Federal and State financial aid. Our financial aid staff is ready to assist students and their families with navigation through the web-based form and to advise on form completion.

Federal Subsidized Direct Loan:  A low interest, need-based federal loan that is not credit-based. The federal government pays the interest on the loan while the student is enrolled in school and during the six-month grace period. Repayment on the loan begins six months after the date the student ceases at least half time enrollment. The loan may be paid back over the course of up to 10 years.

Federal Unsubsidized Direct Loan:  A low interest, non-need based federal loan that is not credit-based. The student has the option to defer payment on the loan and interest while enrolled in school; however, interest accrues while the student is in school. The loan may be paid back over the course of up to 10 years.

Federal Perkins Loan:  A low-interest (5%) loan awarded from limited funds for students with exceptional financial need. Repayment begins 9 months after the student leaves school.

Federal Direct PLUS Loan:  A low-interest, non-need based federal loan made to a dependent student’s parent. This loan is credit-based. Repayment begins 60 days from the date the loan is fully disbursed. The loan is paid back over the course of up to 10 years.

Grace Period:  The grace period on a Federal Direct loan is the six month period after graduating or withdrawing from school. During this time, the borrower is not required to begin repaying his/her student loan.

Grade Level:  Federal law limits Direct loan amounts by the student’s grade level based on the number of academic years completed by the student. A freshman or grade level 01 student has not yet completed a full academic year. A sophomore or grade level 02 student has completed at least one academic year, but not yet two, and so forth.

Half-Time Study: Students must be enrolled at least half-time to be eligible for federal loans. At Kendall College, half-time study is defined as six credits per quarter.

Independent Student: (see Dependent/Independent Student)

Loan Period:  The minimum Kendall College loan period is one quarter, and the maximum is three quarters, Federal loan disbursements must be divided evenly among the quarters which make up the loan period.

myFinAid: student financial aid portal. Students can log into the portal to view their financial aid awards, accept or decline aid, view and access outstanding documents, view their loan history, view disbursements, and access other general financial aid forms. A financial aid advisor will notify the student by email when his/her awards are ready to viewed in myFinAid.

PIN: Students and their parents are required to get a Personal Identification Number (PIN) from the U.S. Department of Education in order to complete the FAFSA. Application for the PIN is now automatically included as part of FAFSA completion. Please remember your PIN for future applications, and do not share it with anyone.

Overlapping Loan Periods: When a student receives financial aid at more than one college or university during the same academic period, an overlapping loan period may occur. In the case of overlapping loan periods, financial aid eligibility at the second institution may be affected by the amount of aid received at the first institution.

Satisfactory Academic Progress (SAP): To remain eligible for Kendall College Financial Aid, students must maintain Satisfactory Academic Progress or “SAP”. In general, maintaining at least a 2.0 GPA and maintaining a course completion rate of 67% will ensure compliance. See more the Kendall College Financial Aid Satisfactory Academic Progress policy for more information.

Verification: Roughly thirty percent of all financial aid applications are randomly selected by the Department of Education for verification of the information submitted on the FAFSA. If an application is selected for verification, the student will be required to submit various types of documentation including Federal Tax Return Transcripts. Once this information is submitted and verified, the student’s financial aid award can be finalized.