Financial Aid Glossary

Adjusted Gross Income (AGI)
Income figure on federal tax returns used to perform need analysis.

Automated Clearinghouse (ACH)  

May be used to streamline the electronic transfer of funds.

Borrower Status Types
Periods during the life cycle of a student loan that define the borrower's status relative to the loan obligation:
  • In Grace: Out of school but not yet expected to make payments.
  • In Repayment: Expected to make regular monthly payments unless granted a deferment or forbearance.
  • In School: Attending an eligible institution at least half time; also known as the "interim" status.

Contributor(s)

Anyone (you, your spouse, your biological or adoptive parent, and/or your parent's spouse) who is required to provide information on the FAFSA, sign the FAFSA, and provide consent and approval to have their federal tax information transferred directly from the IRS into the FAFSA.

Cost of Attendance (COA)

An estimate of a student's total education expenses for an enrollment period that typically includes an allowance for tuition and fees, housing and food, transportation, miscellaneous personal expenses, and loan origination fees (if borrowing from the Federal Direct Student Loan program). The Cost of Attendance is not an invoice or contract as rates, associated fees, and costs may change each academic year.

CSS Profile

College Board tool that collects information to help in awarding non-Federal student aid funds.

Dependent Student
A student who does NOT meet any of the following criteria:
  • Is at least 24 years old by December 31 of the school year;
  • Is a graduate or professional student;
  • Is a married person;
  • Has legal dependents other than a spouse;
  • Is a veteran of the U.S. Armed Forces;
  • Is an orphan or ward of the court;
  • Both parents are deceased since turning 13;
  • In foster care since turning 13;
  • Is or was an emancipated minor;
  • Is or was in legal guardianship as determined by a court in their state of legal residence; and
  • Is homeless or at risk of being homeless.

Expected Family Contribution (EFC)
Replaced by the Student Aid Index (SAI) beginning with the 2024-2025 academic year. Please see definition further down on this page.

FAFSA Submission Summary (FSS)

Produced by the FAFSA Processing System (FPS) and sent to you showing your calculated Student Aid Index (SAI).

Grants
Often referred to as "gift aid" as there is not an expectation for grant funding to be repaid. There are federal grant programs as well as a state grant program:
  • Federal Grants -- Eligibility is determined by the Free Application for Federal Student Aid (FAFSA). With the exception of the Federal Teacher Education Assistance for College and Higher Education (TEACH) Grant, these programs are available to undergraduate students only. The Federal Pell Grant amount varies based on the dependency status, relationship status, income, and household size reported on the FAFSA and may be affected by the Expected Family Contribution (EFC) calculation (if prior to the 2024-2025 academic year) or Student Aid Index (SAI) calculation (if during or after the 2024-2025 academic year). Federal Supplemental Educational Opportunity Grant (FSEOG) is offered to the neediest recipients as determined by SMU policy for need.
  • State Grant -- Eligibility is determined by the total income calculated on the Free Application for Federal Student Aid (FAFSA) or Texas Application for State Financial Aid (TASFA) and is available to undergraduate students. Funds may also be offered to Graduate or Professional students depending on availability. Texas residency status must be documented. Tuition Equalization Grant (TEG) recipients must be enrolled full-time and maintain a 2.5 GPA for continued eligibility. Offers are subject to availability of funds.

Independent Student
A student who meets at least ONE of the following criteria:
  • Is at least 24 years old by December 31 of the school year;
  • Is a graduate or professional student;
  • Is married;
  • Has legal dependents other than a spouse, who receive more than half of their support from the student;
  • Is a veteran of the U.S. Armed Forces;
  • Is an orphan or ward of the court;
  • Both parents are deceased since turning 13;
  • In foster care since turning 13;
  • Is or was an emancipated minor;
  • Is or was in legal guardianship as determined by a court in their state of legal residence; or
  • Is homeless or at risk of being homeless.

Loans

A loan is money you borrow and must pay back with interest. If you apply for financial aid, you may be offered loans as part of your financial aid offer. When you receive a student loan, you are borrowing money to attend college. You must repay the loan as well as interest that accrues. Loans are available through the Department of Education (ED), the Texas Higher Education Coordinating Board (THECB), and private/alternative lenders.

Loan Default

The status a federal student loan enters when payment is 270 days delinquent or when the borrower fails to meet other terms of the promissory note. Consequences of default may include:

  • The entire unpaid balance of your loan and any interest you owe becomes immediately due (this is called "acceleration").
  • You can no longer receive deferment or forbearance, and you lose eligibility for other benefits, such as the ability to choose a repayment plan.
  • You lose eligibility for additional federal student aid.
  • The default is reported to credit bureaus, damaging your credit rating and affecting your ability to buy a car or house or to get a credit card.
  • It may take years to reestablish a good credit record.
  • You may not be able to purchase or sell assets such as real estate.
  • Your tax refunds and federal benefit payments may be withheld and applied toward repayment of your defaulted loan (this is called "Treasury offset").
  • Your wages may be garnished. This means your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan.
  • Your loan holder can take you to court.
  • You may be charged court costs, collection fees, attorney's fees, and other costs associated with the collection process.

 

Loan Origination Fees

Loan fees are charged by the loan lender to originate a student loan and are calculated as a percentage of the total loan amount. The loan fees are deducted proportionately from each loan disbursement. The loan fee is subtracted directly from the loan before it is disbursed. This means you will receive a smaller loan than the total amount that you actually borrowed, but you will still be responsible for repaying the entire amount that you borrowed.

Master Promissory Note (MPN)

A legal document that provides the terms and conditions of your loan(s) and in which you promise to repay your loan(s) and any accrued interest and fees.

National Student Loan Data System (NSLDS)

A database comprised of information from guarantors, schools, lenders, and the U.S. Department of Education (ED) that contains data on federal student financial assistance and may be accessed via StudentAid.gov.

Satisfactory Academic Progress (SAP)

You must meet and maintain a standardized level of academic performance. If you fail to meet the minimum required measurements, you will lose eligibility to receive federal aid. SMU monitors SAP through a qualitative measurement (GPA) and quantitative measurement (PACE; the percentage of attempted hours that are completed). In addition, SAP rules place limits on the number of terms you may continue to receive federal aid.

SMU Institutional Awards

Eligibility is determined annually based on documented financial need using the Free Application for Federal Student Aid (FAFSA) or Texas Application for State Financial Aid (TASFA) and CSS Profile. Award offers are subject to availability of funds. SMU policy limits gift aid, such as SMU-funded scholarships, grants and tuition benefits, to the total cost of tuition and fees.

SMU Scholarships

Based on your status during the admission process. Recipients must maintain full-time enrollment and meet cumulative grade point average requirements.

  • Undergraduate scholarships are available for eight semesters (five semesters for transfer students) or graduation, whichever occurs first.
  • Graduate/professional scholarship eligibility is based on the requirements set by the academic departments at the time of awarding.
  • SMU policy limits gift aid, such as SMU-funded scholarships, grants and tuition benefits, to the total cost of tuition and fees.

Special Circumstances  

If you or your family are expecting extreme changes to your personal life or financial situation, we may be able to adjust your financial information to reflect your current situation more accurately. Please review the examples below and contact the SMU Mane Desk at (214) 768-5555 or enrol_serv@smu.edu if one or more applies.

Special Circumstances we may consider include:

  • Income reduction of 25% or greater;
  • Loss of employment;
  • Loss of benefits;
  • Separation/Divorce;
  • Death; or
  • Birth of a child.

Student Aid Index (SAI)

A figure determined by information provided in the Free Application for Federal Student Aid (FAFSA). Represents a measure of you and your family's ability to pay for college and is used to determine need for purposes of offering federal and state financial aid.

Student Aid Report (SAR)

Replaced by the FAFSA Submission Summary (FSS) beginning with the 2024-2025 academic year. Please see definition further up on this page.

Student Employment
Students are able to work on campus in various positions, such as office clerks, library clerks, dining hall and coffee shop help, research assistants for faculty members, website designers, intramurals referees, graders, lifeguards and more. A current list of on-campus jobs, internships, and post-graduation career opportunities can be found at the SMU 12twenty. In addition to regular student employment, students with financial need as determined by the Free Application for Federal Student Aid (FAFSA) or Texas Application for State Financial Aid (TASFA) may qualify for Federal or State Work-Study.
  • The Federal and State Work-Study Programs allow students to earn money to pay for their education by working part-time. Eligibility is based on the results of the Free Application for Federal Student Aid (FAFSA) or Texas Application for State Financial Aid (TASFA) and is available to undergraduate and graduate students. Participating in the work-study program(s) does not guarantee employment. Students are responsible for finding and applying for a job, and please note not all jobs are or require students to be work-study eligible. 

U.S. Department of Education (ED)
Oversees Federal Student Aid.

Unusual Circumstances

If you are unable to provide parental information on your Free Application for Federal Student Aid (FAFSA), you may be experiencing unusual circumstances. Please review the examples below and contact the SMU Mane Desk at (214) 768-5555 or enrol_serv@smu.edu if one or more applies.

Unusual Circumstances we may consider:

  • You are unable to contact your parents;
  • Parental abandonment or estrangement; or
  • Parental incarceration.

Unusual Circumstances DO NOT include:

  • Parents refuse to contribute to your education;
  • Parents refuse to provide information for the FAFSA;
  • Parents do not claim you as a dependent for income tax purposes; or
  • You demonstrate total self-sufficiency.