Skip to content
Messiah University
Messiah University

Financial Aid Glossary

Glossary of Financial Aid Terms

Questions? Please don't hesitate to contact Messiah's Financial Aid Office.

  • Academic Year (AY): The enrollment period for which aid is awarded. Academic years begin July 1 and end June 30 of the following calendar year.
  • Contributor: A contributor refers to anyone (a student, a student’s spouse, a student’s biological or adoptive parent, or a student’s parent’s spouse) who’s required to provide information on the FAFSA, provide consent and approval to have their federal tax information transferred directly from the IRS into a student’s FAFSA form, and sign a student’s FAFSA form. Learn about reporting parent information on your FAFSA form.
  • Cost of Attendance (COA): The Cost of Attendance consists of the sum of educational costs payable to the university (also referred to as direct or billable costs) and costs paid to others (or indirect, non-billable or discretionary) costs. It includes expenses such as tuition, fees, books, school supplies, food, and housing. The Cost of Attendance represents the highest dollar amount of financial aid a student can receive during an award year.
    • Costs Payable to the University: Costs payable to the university (also referred to as direct or billable costs) generally include tuition, fees, housing, and meals/food (for students residing on campus), health insurance (if minimum insurance coverage is not documented), or any other expenses paid to the university for enrollment.
    • Other Estimated Costs: Other estimated costs (also referred to as indirect, non-billable, or additional costs), are other expenses not paid directly to the university, but associated with receiving an education. These expenses are estimated by the university and may differ from student to student based on their individual circumstances. These expenses may include books, course materials, supplies, equipment, transportation and parking, personal expenses, childcare costs, computer costs, disability expenses, licensure expenses and off-campus rent and food.
    • Federal Student Aid (FSA): An office of the U.S. Department of Education (ED), FSA is the largest provider of student financial aid in the nation. The FSA provides approximately $120.8 billion in grant, work-study, and loan funds each year to help students and their families pay for college or career school. Guidance and helpful resources regarding federal grants and loans, the FAFSA, and other financial options are available online at studentaid.gov.
  • Educational Loan: Money borrowed from the federal government, a college or university, or a private source like a bank or financial institution to pay for educational expenses and must be paid back with interest.
  • Enrollment Status: The number of credits, clock hours, or classes the student is enrolled in, or whether they have withdrawn, graduated, etc. Enrollment status affects eligibility for and the amount of financial aid a student may receive. It also affects when student loans enter repayment status.
  • Entrance Counseling: Before a student can receive funds from a Direct Loan, you’ll need to complete entrance counseling if you’re a first-time student borrower. During entrance counseling, you’ll learn about your rights and responsibilities, and you’ll review the terms and conditions of your loan.
  • Exit Counseling: If a student has federal student loans and leaves school or drops below half-time enrollment, you’ll need to complete exit counseling. During exit counseling, you’ll learn important information that will help you prepare to start making payments on your loans, including the terms and conditions of your loans and repayment plan options.
  • Free Application for Federal Student Aid (FAFSA): The Department of Education requires families to file a FAFSA in order to be eligible for federal aid programs, including Unsubsidized Direct and Parent PLUS Loans. Messiah also requires the FAFSA to determine eligibleity for the Messiah University Grant.  The FAFSA will collect federal tax data from two years prior; see the entry on “Prior-Prior Year” for more details. Some states use the FAFSA as their application for state grant money; check here for your state’s deadline. Messiah’s FAFSA code is 003298.
  • FAFSA Submission Summary (FSS): FSS is the document a student receives after submitting the FAFSA and includes a summary of the FAFSA data submitted on the student’s application. The FSS is a summary of the information the student and parents listed on the FAFSA and also provides some basic financial aid eligibility information. The FSS will indicate if the FAFSA is complete and, if so, it will contain the student's Student Aid Index (SAI) in the upper right-hand corner of the form.
  • Federal Loan: Also known as the Direct Loan Program, which allows eligible students and parents to borrow directly from the U.S. Department of Education at participating colleges or universities. Federal student loans include Direct Subsidized, Direct Unsubsidized and the Direct PLUS programs for parents of dependent students and professional students. Students must complete Entrance Counseling and a Master Promissory Note (MPN) to receive these loans. Repayment begins six months after the student ceases to be enrolled at least half-time with options to delay payment available.
    • Federal Direct Subsidized Student Loan: A Direct Subsidized Loan is an undergraduate federal student loan based on financial need and offers students a reduced, fixed interest rate and flexible repayment terms. Interest is subsidized, meaning it does not accrue to the borrower, while in an in-school, grace, or deferment period. Annual and aggregate limits apply.
    • Federal Direct Unsubsidized Student Loan: An unsubsidized loan offers students a fixed interest rate and flexible repayment terms. It is not based on financial need. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins. Annual and aggregate limits apply.
    • Federal Direct Parent PLUS Loan: Direct Parent PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay for education expenses. Parents must pass a credit check for adverse credit history to qualify for PLUS loans. Repayment of principal and interest begins immediately once the loan is fully disbursed with some options to delay payment available.
  • Federal Pell Grant: The Pell Grant is a federal grant program designed to assist undergraduate students in low- and moderate-income households to pay for college. The award amount is based on the cost of the institution, SAI, and enrollment status, and is subject to an aggregate limit.
  • Federal Supplemental Educational Opportunity Grant (FSEOG): A federal grant provided by the institution to qualified undergraduate students who demonstrate exceptional financial need and does not need to be repaid. The amount of funding from this program varies by institution. Eligible students at Messiah typically receive annual awards of $1,000.
  • Federal Work-Study (FWS): Federal Work-Study provides funding for part-time jobs for undergraduate and graduate students with financial need. Unlike grants and loans, FWS is paid to students as they earn the funds by working.
  • Financial Aid Offer: A financial aid offer is a document sent by a postsecondary institution to a student that outlines the types and amounts of federal, state, private, and school aid a student is offered, including grants, scholarships, Federal Work-Study funds, and loans. This combination of aid is a student’s financial aid package.
  • Gift Aid: Funds awarded to the student that do not have to be repaid, unless the student fails to meet certain criteria, such as a service requirement that is specified as a condition of the gift aid or not completing the period for which the aid was awarded. Gift aid can include awards with titles such as grants, scholarships, remissions, awards, waivers, etc. Gift aid can be awarded based upon many factors, including (but not limited to) financial need, academic excellence, athletic, musical, and/or theatrical talent, affiliation with various groups, and/or career aspirations.
  • Grant: A grant is a form of financial aid that provides funds to help pay for college expenses. Grants are usually awarded to students based on their financial need. Unlike student loans, grants generally don’t need to be repaid. Grants can be offered by the federal government, a student’s state government, school, or a private or nonprofit organization.
  • Independent Student: On the FAFSA, an independent student is not required to report parent financial information. Guidelines for dependency status can be found here.
  • Master Promissory Note (MPN): The document a student must sign prior to obtaining a student loan. The MPN will outline the terms of the loan including the interest rate, loan period, repayment guidelines, and much more. Students must complete the MPN for any Direct Subsidized, Unsubsidized, or institutional loans they accept.
  • Need: The student's Cost of Attendance minus their Student Aid Index.
  • Need-based Aid: Financial assistance provided to students based on their financial situation, determined by completing the FAFSA. Need-based financial aid can take different forms, including grants, scholarships, work-study programs, and low-interest loans, like the federal direct subsidized loan.
  • Net Price: The difference between the cost of attendance and all grants and scholarships. Net price reflects what the student is expected to pay for their education on their own and can be covered through a variety of sources, including savings, student employment, institutional payment plans, or education loans.
  • Net Price Calculator: Net price calculators are available on a college’s or university’s website and allow prospective students to enter information about themselves to find out what students like them paid to attend the institution in the previous year, after taking grants and scholarship aid into account. Messiah’s Net Price Calculator is available here.
  • Other Financing Options: Funding options outside of grants and scholarships that a student and their family may use to pay any remaining costs or expenses. This may include loans, student employment, institutional payment plans, or personal savings.
  • Prior-Prior Year: The FAFSA will collect federal tax data from two years prior; for 2026-2027, the FAFSA calculation will be based on 2024 tax returns, but will still request information on current assets, household size, and number of students in college.
  • Private Loan: A student or parent loan from a bank, credit union, private company, a nonprofit or state-affiliated lender, or from the college or university directly to pay for educational costs. Interest begins to accrue when the loan is disbursed, and repayment begins while the student is still enrolled in school.
  • Satisfactory Academic Progress (SAP): Satisfactory academic progress is a process that schools use to determine if a student is meeting their requirements while working toward a degree or certificate. Every school has its own satisfactory academic progress policy, which students must follow to stay eligible to receive federal student aid.
  • Scholarship: A scholarship is a monetary gift that can assist students with paying for college. Unlike student loans, students don’t need to pay back a scholarship. Scholarships can be merit-based, specific to particular groups of people, or based on financial need. They can be offered by schools, individuals, employers, private companies, nonprofits, professional and social organizations, and community and religious groups.
  • Self-help: An institution's expectation that a student contribute toward their education using a combination of loans, student employment such as Federal Work-Study, and/or summer savings.
  • Student Aid Index (SAI): The SAI is the eligibility index used to determine a student’s eligibility for federal, and in some instances, state and institutional need-based student financial aid. Generally, students with a higher SAI are eligible for less need-based financial aid. It is based upon the information provided by the student and their family on the FAFSA. 
  • Title IV Eligible: Determines if the student and the institution are eligible to receive federal need-based financial aid. Basic eligibility criteria include demonstrated financial need, enrollment in an eligible degree program, U.S. citizenship or eligible non-citizenship, and more. Please visit this helpful graphic to determine if you are eligible.
  • Verification: A federally mandated process to confirm the accuracy of data provided by selected applicants on the FAFSA. To complete the verification process, the student, their parent(s), or spouse, if applicable, are required to provide certain documents to the school for review. If the documentation the student provides the institution doesn't match what was reported on the FAFSA, verification can result in changes to the student's financial aid eligibility, and/or financial aid offers.