Glossary of Financial Aid Terms

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Acronyms

Origination Fee: Fee paid to the bank to compensate them for the cost of administering the loan. The origination fees are charged as the loan is disbursed, and typically run to 3% of the amount disbursed. A portion of this fee is paid to federal government to offset the administrative costs of the loan.

Outside Resource: Aid or benefits available because a student is in school and is counted after need is determined. Outside scholarships, prepaid tuition plans and Vetrans Administration (VA) educational benefits are examples of outside resources.

Outside Scholarship: A scholarship that comes from sources other than the school and the federal or state government.

Out-of-State Student: A student who has not met the legal residency requirements for the state, and is often charged a higher tuition rate at public colleges and universities in the state.

Overawards: A student who receives federal support may not receive awards totaling more than $400 in excess of his or her financial need.