Financial aid comes with a lot of unfamiliar terms. This glossary is here to help. Use it to find clear definitions and better understand the language used in your financial aid journey.
1099 Form: A form used to report income paid to someone who is not an employee. Banks also use this form to report interest income.
1040 Form: Your federal income tax return. For financial aid, you may be asked to submit your 1040 (signed on page 2) and Schedules 1 and 3, if you filed them.
A
Academic Standing/Standards: Academic standards help ensure you are making progress toward completing your program on time. Your academic standing affects your ability to enroll in classes and is evaluated at the end of each term. Academic Standing is separate from Satisfactory Academic Progress (SAP).
Academic Year: The period during which school is in session. At RCC, the academic year runs from summer term (July 1) through spring term (June 30).
Alternative/Private Loans: Education loans offered by private lenders to supplement federal student loans. These loans may require a credit check, co-signer or collateral and may not offer fixed interest rates or flexible repayment options.
Award Letter/Award Offer: An official document issued by the FInancial Aid Office that lists all the financial aid awarded to you. This letter provides details on the analysis of your financial need and the breakdown of your award package according to the amount, source, and type of aid. It will also include information about Cost of Attendance.
C
Calendar Year: The calendar year runs Jan. 1 through Dec. 31.
Campus-Based Aid: Financial aid programs managed by the college, such as Federal Supplemental Educational Opportunity Grant (SEOG) and Federal Work-Study. Funding is limited, so not all eligible students will receive these awards.
Capitalization: When unpaid interest is added to your loan balance. This increases the total amount you repay over time.
Change in Income Appeal: A request to have your financial aid eligibility reviewed based on a significant decrease in income since the tax year reported on your FAFSA. Documentation is required.
Collection Agency: A company hired to recover unpaid debt, such as defaulted student loans or money owed to the college.
Cost of Attendance (COA): Also known as the Student Budget, this is the estimated total cost to attend college for one academic year, including tuition and fees, housing and food, books and supplies, transportation and personal expenses. RCC uses COA to calculate financial aid eligibility. Because it is based on average costs, your actual expenses may be different.
D
Default: When you fail to make loan payments for an extended period, typically more than 270 days. Default can lead to serious consequences, including loss of financial aid eligibility, wage garnishment and collections.
Deferment: A temporary pause on loan payments. Subsidized loans do not accrue interest during deferment, but unsubsidized loans do accrue interest during deferment. Most federal loan programs allow students to defer their loans while they are in school at least half time (In-School Deferment). If you don’t qualify for a deferment, you may be able to get a forbearance. You can’t get a deferment if your loan is in default.
Degree Partnership Program: Allows you to receive financial aid while taking classes at two schools at the same time. It can also be called a “Dual Enrollment Agreement” or “Consortium Agreement.”
- Home school: Where you are seeking your degree and usually taking most of your classes.
- Host school: The other school you attend without receiving financial aid from it.
Delinquent: When a loan payment is late. Continued missed payments can lead to default.
Dependency Status: Determines whether you must include parent information on your FAFSA or ORSAA. You do not decide if you’re dependent or independent; your status is determined by the answers you provide on your aid application.
Dependent: A student who must report parent information on the FAFSA or ORSAA. This does not mean parents are required to pay for college. Spouses do not count as dependents in the Federal Methodology.
Direct Costs: Expenses billed directly by the college, such as tuition and fees. Financial aid is applied to these costs first.
Disbursement: When financial aid funds are sent to the school and applied to your account. Any remaining funds are refunded to you through BM Technologies (formerly BankMobile).
E
Emancipated (Minor): A legal status granted by a court that releases a minor from the control of a parent or guardian. For financial aid purposes, emancipation must be court-ordered. It does not automatically mean parents are no longer responsible for contributing to education costs.
Enrollment Change Form: A form you submit if your enrollment does not match your financial aid award. This allows the Financial Aid Office to adjust your aid based on your current number of credits. You must also submit this form if you plan to attend summer term, since RCC does not assume summer enrollment.
Enrollment Status/Level: Whether you are enrolled full-time or part-time. In many (not all) cases, you must take at least 6 credits to qualify for financial aid.
Entrance Counseling: Explains your rights and obligations as a condition of accepting a Federal Direct Loan.
Exit Counseling: Provides important information to prepare you to repay your federal student loan(s).
F
FAFSA: Free Application for Federal Student Aid. This form is used to apply for federal and some state financial aid. There is no fee to apply.
FAFSA Submission Summary: A summary of your FAFSA information and estimated aid eligibility. It is not a financial aid offer.
Federal Work-Study (FWS): A program that provides part-time jobs for undergraduate students during the school year. The federal government pays a portion of your wages. If awarded, Work-Study appears on your Award Offer, but you are paid directly through your job, not through your financial aid. Eligibility is based on financial need.
Money you earn through work-study is not counted as income when your financial aid eligibility is calculated for the following year. If you do not qualify for Work-Study or reach your limit, you may still apply for student employment at RCC. These jobs are paid directly by RCC and earnings are considered taxable income.
Financial Aid: Money to help pay for college, including grants, scholarships, Work-Study and loans.
Financial Aid (FinAid) Advisor: RCC staff who can assist you with questions or issues with financial aid or financing college. Each student has an assigned Financial Aid Advisor based on their pathway or major.
Financial Need: The difference between your Cost of Attendance and your Student Aid Index (SAI). This helps determine your financial aid eligibility.
First-Time Borrower: A student who has not previously received federal student loans. The first loan funds are disbursed 30 days after the first day of the enrollment period.
Forbearance: A temporary pause or reduction in loan payments. Interest continues to accrue during this time.
Federal Direct Loans/Stafford Loans: Federal student loans offered in two types: subsidized and unsubsidized. Subsidized loans are based on financial need, and the federal government pays the interest while you are in school and during the six-month grace period. Unsubsidized loans are not based on need, and interest begins accruing as soon as the loan is disbursed. Both loan types have annual and lifetime limits and require you to be eligible for financial aid at your school.
Financial Aid Repay: If you receive financial aid for a class but do not attend, or if you drop a class and your enrollment level changes, you may be required to repay some of your financial aid.
FSA ID: A username and password you create to access U.S. Department of Education systems. Your FSA ID is used to sign your FAFSA and other financial aid documents electronically.
G
Grace Period: A period of time after you graduate, leave school or drop below half-time enrollment when you are not required to make loan payments. For most Federal Direct Loans, the grace period is six months.
GPA/cGPA: Grade Point Average (GPA) is the average of your grades on a 4.0 scale. Term GPA is used to determine Academic Standing. Cumulative GPA (cGPA) is used to evaluate Satisfactory Academic Progress (SAP) [6.4.6.10] for financial aid.
Grant: Financial aid that does not need to be repaid, unless you withdraw and owe a repayment.
H
Homeless: An individual without stable housing who may live in shelters, motels, cars, parks or temporarily with others due to lack of housing. Students experiencing homelessness may still qualify for federal student aid.
I
Independent: A student who does not need to provide parent information on the FAFSA or ORSAA.
Indirect Costs: Expenses not billed by the college, such as housing, food, transportation and personal expenses. These vary by student.
Interest: The cost of borrowing money, calculated as a percentage of your loan balance. Since July 1, 2006 all federal education loans have involved fixed interest rates.
L
Legal Guardianship: A court-approved arrangement that allows someone other than a parent to care for you. For financial aid purposes, guardianship must be granted by a judge. Written statements from parents, even if notarized, are not considered legal guardianship.
Loan: Borrowed money that must be repaid with interest. Federal student loans often have lower interest rates and more flexible repayment options than private loans.
Loan Request Form: A required form if you want to borrow student loans. RCC does not automatically award loans, so you must complete the loan application steps, including this form, for the academic year.
Loan Servicer: A company that manages your student loan, including billing and repayment options. When you borrow Federal Student Loans, you’ll be assigned a specific loan servicer that you’ll make payments to when required. Find your Federal Loan Servicer on studentaid.gov.
M
Master Promissory Note (MPN): A legal agreement in which you promise to repay your loan and any interest or fees. The MPN must be signed by the student borrower before loan funds are disbursed by the lender. It also explains the terms and conditions of the loan and requires at least two references of people who have known you for at least three years. MPNs are generally valid for 10 years but may be required more often if you have a break in enrollment or change schools.
Merit-based: Financial aid awarded based on your achievements, such as grades, test scores, talents or activities. Merit-based aid is not based on financial need.
N
Need-based: Financial aid awarded based on your financial situation and having high financial need.
O
Oregon Opportunity Grant: A state grant for Oregon students with financial need who are working toward their first degree or certificate.
Oregon Promise Grant: A state grant that helps cover tuition at Oregon community colleges for recent Oregon high school or GED® graduates.
Oregon Student Aid Application (ORSAA): The application used to apply for Oregon state financial aid if you do not qualify to submit the FAFSA. You must be an Oregon resident. Submit either the ORSAA or the FAFSA, not both.
Origination Fee: A fee charged by the lender when your loan is disbursed, typically 3% of the amount disbursed.
OSAC: Office of Student Access and Completion. Administers Oregon state financial aid programs.
P
PACE/cPACE: A student’s successful completion percentage, calculated as the number of credits successfully completed divided by the number of credits attempted. PACE is calculated term-by-term for Academic Standing and cumulatively (cPACE) for Satisfactory Academic Progress (SAP) for financial aid.
Pell Grant: A federal grant for undergraduate students with significant financial need.
Principal: The original amount borrowed on a loan, not including interest.
Prior-Prior Year: FAFSA/ORSAA reporting rule that requires students, parents, or contributors to use tax information from two years prior. For example, the 2026/2027 FAFSA uses tax information from 2024.
Public Service Loan Forgiveness (PSLF) Program: Forgives the remaining balance on your Direct Loans after you make 120 qualifying monthly payments (typically 10 years) while working full-time for a qualifying employer. You must apply for PSLF on studentaid.gov and regularly certify your employment.
R
Refund: Money returned to you if your financial aid exceeds your charges or if you are owed a refund after dropping a class. RCC sends most refunds through BM Technologies (previously BankMobile). Select a refund preference to receive your funds.
Rehabilitated Loan: A method to remove a student loan from default. To start the process, contact your loan servicer.
Repayment: Paying back a loan through scheduled payments.
Return to Title IV (R2T4): A calculation that may require students to repay some or all federal financial aid if they withdraw (officially or unofficially) from all aid-eligible classes. The amount owed depends on how much of the term was completed and how much federal aid was earned.
S
Satisfactory Academic Progress (SAP): The academic standards you must meet to continue receiving financial aid. RCC’s SAP policy consists of minimum cGPA and cPACE requirements as well as the ability for the student to complete their major within a Maximum Time Frame.
SAP Appeal: An option for students in financial aid suspension to request reinstatement of aid eligibility on a probationary basis.
Scholarship: Financial aid that does not need to be repaid. Scholarships may be based on merit, financial need or other criteria.
Special Circumstance Appeal: A request for RCC Financial Aid to review your eligibility due to significant changes in circumstances, such as marriage, divorce, separation, death, unusual expenses, or major changes in household size or assets after completing the FAFSA.
Student Aid Index (SAI): A number generated by a student’s FAFSA or ORSAA, used to determine your financial aid eligibility. It is not the amount you will pay for college.
Subsidized Loan: A federal loan where the government pays the interest while you are in school and during certain periods. This is a need-based loan and not all students qualify.
Supplemental Education Opportunity Grant (SEOG): A federal grant for undergraduate students with exceptional financial need. SEOG funds are awarded by RCC’s Financial Aid Office; no separate application is required beyond submitting your FAFSA early.
T
Tax Return Transcript (TRT): A transcript from the IRS showing all information on a particular tax return. For jointly filed returns, it includes both filers’ data but does not break down individual income. Often requested with Wage and Income Transcripts. Available at irs.gov.
Title IV: Refers to “Title IV of the Higher Education Act of 1965” and the federal financial aid programs it authorizes.
TRIO EOC: A federally funded program that helps students, including high school seniors, adults and veterans, prepare for and complete college. TRIO EOC Specialists assist with financial aid applications and are available by appointment on all three RCC campuses or via phone/Zoom.
U
Unaccompanied Homeless Youth (UHY): For financial aid, an unaccompanied youth is someone under 24 who is not living in the custody of a parent or guardian and lacks stable housing (such as living in shelters, motels, parks, cars or temporarily with others). Documentation is required if you answer “yes” to this status on your aid application.
Unsubsidized Loan: A federal loan where you are responsible for all interest, starting when the loan is disbursed.
US Department of Education (ED or USED): The federal agency that administers financial aid programs, including Federal Pell Grants, Federal Work-Study and Federal Direct Loans (Stafford).
V
Verification: A process where the college confirms the information on your financial aid application. Additional documents may be required.
Veteran: For federal financial aid purposes, a veteran is a former member of the U.S. Armed Forces (Army, Navy, Air Force, Marines, or Coast Guard) who served on active duty (not active duty for training only) and was discharged other than dishonorably. ROTC students, members of the National Guard and most reservists are not considered veterans for financial aid purposes.
W
W-2 Form: A form that shows your annual wages and taxes withheld from your paycheck.
Wage and Income Transcript (WIT): An IRS transcript listing W-2s and 1099s for a given tax year. Often requested alongside a Tax Return Transcript. Available at irs.gov.
Ward of the Court: Someone placed under the protection of the courts. A minor may become a ward if the court determines they would face abuse or neglect with their parents/guardians. Some wards may be placed with temporary guardians or in foster care. Incarceration alone does not automatically make someone a ward of the court.