A Academic Transcript Official transcript of student's academic history at a higher education institution. Academic Year The financial aid office considers an academic year to be two consecutive semesters. Alternative Loans Credit-based educational loans supplied by private lenders to supplement awarded financial aid. Alumni (of MCAD) Students who have completed an undergraduate (BFA, BS), graduate (MFA, MA), or post-baccalaureate certificate program at MCAD. Award Notification Official notification a student receives from the financial aid office of any federal, state, or institutional funds for which a student qualifies. C Capitalization The adding of unpaid interest to the principal balance of a loan. Cost of Attendance The total amount needed to attend school, including tuition and fees, room and board, books, supplies, transportation costs, and certain living expenses. D Default Failure to adhere to any and all terms of a promissory note. Deferment An authorized period of time during which a borrower may postpone principal and interest payments. Demonstrated Need The difference between the expected family contribution and the cost of attendance. Dependent Student A student who meets the guidelines outlined by the federal government in the FAFSA as a student dependent on his/her parents or guardians for financial support. Disbursement The application of funds to a student’s account. E Entrance Loan Counseling A federally required session that instructs students on their rights and responsibilities as borrowers. Expected Family Contribution (EFC) Amount the family is expected to pay toward a student's college education based on federal analysis of student/family need for assistance. F Financial Aid Package The total financial aid a student receives, including grants, loans, work-study and scholarships, as indicated in the student's award offer. Free Application for Federal Student Aid (FAFSA) The form used by the federal government to determine a student's eligibility for federal funds. G Grants Educational funds that do not have to be repaid, and are usually based on individual need. P Parental Loans (PLUS) Educational loans that parents or guardians may borrow through the US Department of Education to pay up to the cost of attendance. Pell Grants Federal student aid available to undergraduates with the greatest demonstrated financial need. Promissory Note The legal and binding document borrowers sign prior to receiving loan funds. S Satisfactory Progress Maintaining the minimum GPA while meeting MCAD standards. Scholarships Educational funds that may come from any number of sources and do not typically have to be repaid. State Aid Merit or need-based aid available from some states. Check with your state's department of education for more information. Stafford Loan Low-interest loans offered by the US government. Awarded based on financial need and grade level. Student Aid Report (SAR) Notification of FAFSA results; received by the student and the college. Student Loans Educational loans that must be paid back with or without interest. Subsidized Loan A need-based loan in which the interest is paid by the federal government while the student is in school, a grace period, or deferment. Supplemental Educational Opportunity Grant (SEOG) A limited federal grant program for undergraduates with the greatest demonstrated financial need. U Unsubsidized Loan A loan in which interest accrues while a student is in school. V Verification The federal government's process of randomly selecting students to verify the information supplied on their FAFSAs. W Work-Study Work study is a student aid program that allows students with financial need to work part time at a campus job.