Financial Aid

School year for which financial aid is used to fund a student’s education. Generally, this is the 12-month period that begins on July 1 of one year and ends on June 30 of the following year.

The estimated cost of attendance is the total of two types of expenses:

• Direct Costs: charges billed by the university, such as tuition
• Indirect Costs: expenses that arise from attending college and may be paid to other organizations by the student or their family, such as transportation.

A temporary postponement of payment on a loan that is allowed under certain conditions and during which interest doesn’t accrue on subsidized loans.

The payment of money from a fund. For example, when a student loan is disbursed to a student's account for them to use as payment for tuition and other college costs.

Loan funds provided to the student by the U.S. Department of Education, through the school. Repayment of the principal balance (what is owed, before interest) begins six months after the borrower ceases to be a student on at least half-time basis. The Free Application for Federal Student Aid (FAFSA) is the annual application. Students must accept a loan offer and complete entrance counseling and the master promissory note at www.studentaid.gov to receive disbursements. 

Loan amounts may be reduced if additional gift aid is awarded. There are two types of Federal Direct Student Loans:

• Federal Direct Subsidized Loan: Students with financial need can qualify for a subsidized loan. The government pays the interest on the loan while the student remains enrolled at least half-time.
• Federal Direct Unsubsidized Loan: Students who do not demonstrate financial need can qualify for an unsubsidized loan. Interest accrues while the student is enrolled in school. Payments on the interest can be made, but are not required until the borrower ceases enrollment.

A federal loan program that allows parents who have no adverse credit history to apply for up to the cost of attendance each year, less any financial aid. PLUS loans must be repaid with interest. This loan is only available for dependent students (students who require parental information on the FAFSA). The parent of record must request a direct parent plus loan at www.studentaid.gov, and if approved, complete the master promissory note before disbursement.

A federal loan program that allows graduate students who have no adverse credit history to apply for up to the cost of attendance each year, less any financial aid. PLUS loans must be repaid with interest. This loan is only available for graduate degree or professional students.

A grant provided by the federal government to qualified undergraduate students who meet federal Pell Grant maximum; meet minimum criteria based on family size, family structure, federal poverty tables, tax filing status; or demonstrate exceptional financial need and have a calculated Student Aid Index (SAI) below a threshold designated by the U.S Department of Education. The amount awarded is based on full-time enrollment and the amount disbursed is prorated based on actual enrollment intensity. Students must complete the FAFSA each year they're enrolled in order to renew this grant.

A grant provided by the federal government to qualified undergraduate students who demonstrate exceptional financial need. Priority is given to Pell Grant recipients and funds must be awarded by the school in the lowest SAI order. Awarding is contingent upon funding and may not be renewed year to year. 

This application determines eligibility for federal grants and loans, state grants and scholarships and some private scholarships. Students and their families can complete the FAFSA at www.studentaid.gov.

Funds awarded to the student that don’t have to be repaid, unless the student fails to meet certain terms, such as a service requirement, specified as a condition of the grant. Gift aid includes awards with titles such as grants, scholarships, remissions, waivers, etc. Gift aid can be awarded based on many factors, including (but not limited to) financial need, academic excellence, athletic, musical and theatrical talent, affiliation with various groups or career aspirations.

Money that is given to a student outright, rather than loaned. A grant is often awarded based on a student's financial need and does not need to be repaid (unless perhaps a student withdraws from school and owes a refund). Some schools will use 'grant and 'scholarship' interchangeably, though the qualifications for each are usually different. Grants fall under the category of 'gift aid.'

A loan expense charged for the use of borrowed money, which is paid by a borrower to a lender. The expense is calculated as a percentage of the unpaid principal amount of the loan.

Student loan forgiveness is offered to encourage certain types of employment in the public sector (education, government, healthcare, etc.). A loan may be fully or partially forgiven after a certain number of years of qualifying employment.

Based on a student's ability or skill. For example, a merit-based scholarship might be awarded based on a student's high GPA.

Amount of direct and indirect costs remaining after all gift aid (scholarships and grants) is subtracted.

Difference between the institution’s cost of attendance and the student’s Student Aid Index (SAI) as determined by information located on the FAFSA submission summary, which can be found at www.studentaid.gov.

Difference between the institution’s cost of attendance and the student’s Student Aid Index (SAI) as determined by information located on the FAFSA submission summary, which can be found at www.studentaid.gov.

To be eligible for federal funds (Pell, FSEOG, Direct Loans, etc.), institutional and state aid, students must make satisfactory academic progress, meaning they are continuing to successfully complete courses and maintain a required Grade Point Average (GPA) based on their degree level.

A type of gift aid awarded to the student that does not need to be repaid. Scholarship awards are typically based on merit or a combination of merit and need, such as academic excellence, talent, affiliation with various groups or career aspirations. To be eligible for renewal of certain scholarships, the student may be required to maintain a specific GPA and enrollment status.

Financial aid in the form of loans or student employment. Loans can be used to pay the remaining net costs after gift aid is deducted. Student employment earnings (including work-study) are generally not deducted from billed costs, but are paid in the form of wages to students and can be used to help students cover indirect costs.

A state-funded program provides grants and scholarships to Alaska residents. The FAFSA must be completed by June 30 to be considered for these awards. State aid is awarded at the start of each semester around the first day of classes.

• Alaska Education Grant: Awarded to students who demonstrate the highest level of financial need as determined by the results of the FAFSA. Amount varies and is based on enrollment status.
• Alaska Performance Scholarship: Awarded to students based on their high school curriculum completion, test scores and GPA. 

Federal work-study is funding that a student earns for work completed while enrolled in college. Even though work-study funding may appear on your financial aid offer, these funds are typically paid in the form of a paycheck, rather than being designated directly as a tuition payment to the institution like other financial aid.