University Office of Student Financial Aid
Glossary of Terms/Definitions
Financial Aid/Indebtedness,
Acronyms & Terminology
Alternative Loan Programs (ALP) – are credit-based, unsubsidized, higher interest rate loan funds that help meet educational expenses after borrowing the maximum in Federal Direct Stafford Loan funds. Included in this category of loan funds are 1) Federal Grad PLUS Loan (for Graduate Students only) which carries a fixed 7.9% interest rate and 2) Private Educational Loan Funds which have a variable, non-fixed interest rate. ALP funds should be accessed only as a last resort. As these funds represent a higher cost form of borrowing, students are encouraged to look at all other financial avenues, including borrowing from family, before accessing the Alternative Loan option. Students who need to pursue this option should check the University Office of Student Financial Aid webpage at www.jefferson.edu/financial_aid/ for the most up to date information regarding these loans.
Dependency Status (for the 2013-14 academic year) - Applicants are automatically considered to be dependent students for financial aid purposes (meaning financial aid eligibility will be determined including parent information) unless they meet the federal definition of an independent student.
Students who are not dependent on their parents for financial support are considered independent. Under the federal definition for the 2013-14 academic year, an independent student is an individual who meets at least one of the following criteria:
•is 24 years old (born before 1/1/90)
•is married (includes separated) as of the date of completion of the FAFSA
•is working on a master's or doctorate program at the beginning of the 2013-14 academic year
•is currently serving on active duty in the U.S. Armed Forces for other than training purposes
•is a veteran of the U.S. Armed Forces
•has children who will receive more than half of their support from student between July 1, 2013 and June 30, 2014
•has legal dependents (other than a spouse or children) who live with the student and receive more than half of their support from student (and will continue to do so through June 30, 2014)
•had no living parent (biological or adoptive) when age 13 or older (even if now adopted); was in foster care when age 13 or older (even if not in foster care now); or, was a dependent/ward of the court when age 13 or older (even if not a dependent/ward of the court now)
•is currently an emancipated minor as determined by a court in the student's state of legal residence
•is currently in legal guardianship as determined by a court in the student's state of legal residence
•at any time on or after July 1, 2012, was determined to be an unaccompanied homeless youth by a high school or school district homeless liaison
•at any time on or after July 1, 2012, was determined to be an unaccompanied homeless youth by the U.S. Department of Housing and Urban Development
•at any time on or after July 1, 2012, was determined to be either an unaccompanied homeless youth or a self-supporting individual at risk of being homeless by the director of a runaway or homeless youth basic center or transitional living program
•has been determined by the college financial aid administrator to be an unaccompanied youth who is homeless or is self-supporting and at risk of being homeless
A student who does not meet at least one of the above independent student criteria for the 2013-14 academic year is considered dependent.
Educational Plan– Students who intend to enroll on a part-time basis or are enrolled in any program that the tuition is charged on a per credit basis must complete this form. Undergraduate students enrolled in the Jefferson School of Health Professions and School of Nursing are considered part-time during any semester in which they take fewer than 12 credits. Graduate students enrolled in the Jefferson School of Health Professions, School of Nursing, and School of Pharmacy are considered part-time during any semester in which they take fewer than 9 credits.
All students in the Jefferson Graduate School of Biomedical Sciences (with the exception of PhD students) and the Jefferson School of Population Health are required to complete an Education Plan as tuition for students in these schools are charged on a per credit basis.
By completing this form students indicate the number of credits he/she intends to take each semester.
Part-time students are billed on a per credit basis. For this reason, the Office of Financial Aid must know the number of credits for which the student intends to enroll, so that his/her tuition charges may be determined and included in the overall student’s expense budget. A student's financial need, and related financial aid eligibility, is calculated by subtracting his/her expected family contribution from his/her educational budget.
FAFSA – All students applying for the Federal Direct Stafford Loan, institutional aid, and/or alternative loan funds must complete the Free Application for Federal Student Aid (FAFSA). Once completed and submitted to the Federal Processor, an analysis of the family’s expected financial contribution is sent to the school and used to determine eligibility for all aid programs.
Federal Direct Stafford Master Promissory Note – A signed Master Promissory Note (MPN) must be on file for every student applying for the Federal Direct Stafford Loan. The signed MPN acknowledges the responsibility to repay the debt and abide by the specified loan parameters. Under the MPN process, all borrowers are required to sign a Master Promissory Note for the first year only. The same MPN will be used for certifying loan funds in future years, assuming the student does not change lenders or colleges within the university. ALL NEW STUDENTS MUST COMPLETE AN MPN. Students can access the MPN at http://studentloans.gov.
Federal Direct Subsidized Stafford Loan – All undergraduate students are required to borrow the maximum Federal Subsidized Direct Stafford Loan (see chart below for amounts) before being considered for institutional aid.
Parameters of the loan include:
- Need based loan (Eligibility determined as Standard Cost of Education minus Expected Family Contribution (calculated according to federal formula) minus other financial resources.
- The federal government will pay the interest on the Federal Subsidized Stafford Loan while the student is in school, during the six-month grace period (following cessation of enrollment), and during periods of approved deferment.
- Annual maximum for which a student may apply is up to $5,500 for undergraduate students (see chart above) Graduate Students are no longer eligible to borrow the Subsidized Stafford Loan beginning the 2012-13 academic year.
- Aggregate maximum eligibility for undergraduate Students- $23,000 graduate students - $65,500.
- all loans disbursed after July 1, 2006 will be at a fixed interest rate of 6.8% through the life of the loan.
- Standard repayment period is 10 years.
Federal Direct Unsubsidized Stafford Loan
Parameters of the loan include:
- Non-need based loan
- Government does NOT pay the interest on the Unsubsidized Stafford loan. Interest begins to accrue upon disbursement of funds. Payment may be deferred but will accrue and may be compounded no more than quarterly.
- See chart below for annual maximum for which a student may apply for.
| Federal Direct Subsidized Stafford Loan Maximum | Federal Direct Unsubsidized Stafford Loan Maximum | ||
| DEPENDENT | INDEPENDENT | ||
| 1st Year (AS/BS Degree) | $3,500 | $2,000 | $6,000 |
| 2nd Year (AS/BS Degree) | $4,500 | $2,000 | $6,000 |
| 3rd Year (BS Degree) | $5,500 | $2,000 | $7,000 |
| 4th & 5th Year (BS Degree) | $5,500 | $2,000 | $7,000 |
| Graduate Students | $0 * | $20,500 | |
| Pharmacy Students | $0 * | up to $35,167 for an 11 month enrollment | |
| Medical Students | $0 * | up to $47,166 for a 12 month enrollment | |
| * With the passing of the Budget Deficit Bill of August 2011. no Subsidized Direct Loans will be offered to Graduate students for 2012-13 academic year and beyond. | |||
- Aggregate maximum eligibility is: Undergraduate Students-Dependent $31,500, Independent $57,500 (both aggregate maximums include total amount borrowed in Federal Subsidized Stafford funds). All Graduate Students-$138,500 (including total amount borrowed in Federal Subsidized Stafford funds); and medical students (including total amount borrowed in Federal Subsidized Stafford funds) - $224,000.
- All loans disbursed after July 1, 2006 will be at a fixed interest rate of 6.8% through the life of the loan
- Standard repayment period is 10 years
To estimate the amount you will need to borrow through the Federal Direct Unsubsidized Stafford Loan program: start with the Standard Cost of Education (e.g., tuition, room and board, transportation, books and supplies, health insurance); and subtract your family support and the maximum Federal Subsidized Stafford loan eligibility. If you are a returning student and are continuing in the same college, you should also subtract the amount of institutional aid you received in the prior year.
Federal Work Study (Health Professions/Graduate School of Biomedical Sciences) – Federal program that provides jobs for students who demonstrate financial need. Recipients are placed in positions primarily in the University and Hospital, with limited placements available in community service positions. Recipients receive a bi-weekly paycheck based on the number of hours worked during that pay period.
Federal Work-Study (JMC) – Federal program that provides jobs for students who demonstrate financial need. Recipients are placed in positions primarily in the University and Hospital, with limited placements available in community service positions. Recipients receive a bi-weekly paycheck based on the number of hours worked during that pay period. JMC students are eligible to work full time under the Federal Work-Study Program during the summer between the first and second year.
Institutional Aid (JMC) – Institutional Aid refers to both:
- Jefferson scholarships and;
- Low interest loans. Jefferson loans are interest free while the student is in school and for one year after the student graduates (or otherwise ceases to be enrolled). Repayment also begins one year after end of the enrollment period. At that time interest accrues at a fixed rate of 5%. Standard repayment is 10 years.
Institutional Application – All students applying for any type of federal institutional or institutionally administered financial aid must complete the Institutional Application. This includes application for: Federal Direct Stafford Loan funds, institutional aid, Federal Work Study, other federal funding (e.g., Federal Pell Grant Program, Federal Perkins Loan Program, Federal Supplemental Educational Opportunity Grant), PHEAA State Grant funding and private alternative loan funds.
