Glossary of Financial Aid Terms

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

Acronyms

Balloon Payment: A larger than usual payment used to pay off the outstanding balance of a loan without penalty. Not all loans allow balloon payments. Simple interest loans, like many educational loans, generally do allow balloon payments.

Bankruptcy: When a person is declared bankrupt, they are found to be legally insolvent and their property is distributed among their creditors or otherwise administered to satisfy the interests of creditors. Federal student loans, however, cannot normally be discharged through bankruptcy.

Base Year: The tax year prior to the academic year (award year) for which financial aid is requested. The base year runs from January 1 of the junior year in high school through December 31 of the senior year. Financial information from this year is used to determine eligibility for financial aid.

Borrower: The person who receives the loan.

Budget: See Cost of Attendance (COA).

Bursar's Office (Also called Business Office): The university office that is responsible for the billing and collection of university charges.