Glossary of Terms and Definitions
Glossary of Terms and Definitions
This glossary is intended to help you learn common terms and definitions related to the different resource hubs found on our Resource Center. For a full list of financial aid terms, visit the Federal Student Aid website.
501 (c) (3) Nonprofit
501 (c) (3) nonprofit is a particular nonprofit organization that has been approved by the Internal Revenue Service (IRS) as a tax-exempt, charitable organization. “Charitable” is broadly defined as being established for purposes that are religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals and children.
504 Plan
504 plan is a plan developed to ensure that a child who has a disability identified under the law and is attending an elementary or secondary educational institution receives accommodations that will ensure their academic success and access to the learning environment.
Accommodation
Accommodation is an adjustment to teaching techniques, materials, and environments to ensure that all students have an equal opportunity to be successful.
Apprenticeships
Apprenticeships are programs in which an apprentice receives on-the-job learning from a master-level supervisor while also receiving job-related education from an institution such as community colleges or trade organizations.
Alaska Native and Native Hawaiian Serving Institutions (ANNHSI)
Alaska Native-serving institutions are postsecondary schools with student bodies composed of at least 20 percent Alaska Natives. Native Hawaiian-serving institutions have at least 10 percent Native Hawaiian students.
Asian American and Native American Pacific Islander Serving Institutions (AANAPISIs)
AANAPISIs are defined under the Higher Education Act (HEA) as colleges or universities with an undergraduate enrollment that is at least 10 percent Asian American and Native American Pacific Islander.
Associate Degree
Associate degree is a degree awarded after completing a 2-year program that prepares students for a career or to transfer to a 4-year university. There are many types of associate degrees, make sure you are taking the correct one and that your credits will transfer over if transferring into a 4-year university/college.
Bachelor’s Degree
Bachelor’s degree is a degree awarded after completing a 4-year course of study for a specialized major(s) at a college or university. There are two types of bachelor’s degrees: 1) the Bachelor of Arts or B.A. focuses on the humanities and the arts and 2) the Bachelor of Science or B.S., is more specialized and focuses on the sciences and math.
Direct Plus Loans
Direct Plus Loans are federal loans that graduate or professional students and parents of dependent undergraduate students use to help pay for education expenses.
FAFSA
FAFSA is the Free Application for Federal Student Aid. This is a free application completed by current and future college students in the United States to determine their eligibility for student financial aid such as federal grants, work study and loans.
Federal Pell Grant
The Pell Grant is the largest federal grant program offered to undergraduates. It is designed to assist students from low-income households. To qualify for a Pell Grant, a student must demonstrate financial need by completing and submitting the FAFSA® form.
Federal Student Aid
Federal Student Aid is aid from the government in the form of grants, loans, and/or work-study to assist students with college or career school. Students must complete the FAFSA® form to apply for this aid.
First Generation College Student
First generation college student means that neither of your parents earned a bachelor’s or 4-year degree from a U.S. college or university. Younger siblings with older siblings who have graduated or are in college but whose parents have not received a bachelor’s degree from a U.S. college or university are still considered first generation.
Foster Care
Foster care is a temporary living arrangement for children who have been abused or neglected and need a safe place to live.
Grants
Grants are monetary gifts from the federal/state government or the college/university for people pursuing higher education. It is often based on financial need and does not need to be repaid (unless, for example, you withdraw from school and owe a refund).
Guardianship
Guardianship is a legal relationship in which a person(s) or agency (the guardian) is appointed by the court to make decisions and act on behalf of a person who does not have adequate capacity to make such decisions involving the management of personal affairs, property, or both.
Higher Education
Higher Education also called post-secondary education is the third level education and is an optional final stage of formal learning that occurs after completion of secondary education (high school). This includes community colleges, four-year colleges/universities, and vocational or trade schools.
Hispanic
Hispanic refers to a person from a Spanish-speaking country.
Hispanic Serving Institutions (HSIs)
HSIs are defined in Title V of the Higher Education Act (HEA) as not-for-profit institutions of higher learning with a full-time equivalent (FTE) undergraduate student enrollment that is at least 25 percent Hispanic.
Historically Black College or University (HBCU)
HBCUs are institutions of higher education in the United States that were established before the Civil Rights Act of 1964 with the intention of primarily educating and serving the African American community.
Homeless
An individual is considered homeless if he or she lacks fixed, regular, and adequate housing. You may be homeless if you are living in a shelter, park, motel or car, or temporarily living with other people because you have nowhere else to go. Also, if you are living in any of these situations and fleeing an abusive parent you may be considered homeless when completing your FAFSA form even if your parent would provide support and a place to live.
Individualized Education Program (IEP)
IEP is a plan or program developed to ensure that a child who has a disability identified under the law and is attending an elementary or secondary educational institution receives specialized instruction and related services.
Individuals with Disabilities Education Act (IDEA)
IDEA is the federal law that guarantees the right to Free and Appropriate Public Education (FAPE) and the right to be educated in the least restrictive environment.
Least Restrictive Environment (LRE)
Students with disabilities must be educated in LREs that can meet their needs. This means that students with disabilities must be educated with their non-disabled peers to the maximum extent that is appropriate for their needs and abilities.
Loan
Loan is money borrowed from the federal government or a private source like a bank or financial institution and must be paid back with interest.
McKinney-Vento Homeless Assistance Act
McKinney-Vento Homeless Assistance Act is federal legislation that establishes the educational rights of children and youth experiencing homelessness in U.S. public schools. This includes those who are: sharing the housing of others due to loss of housing, economic hardship, or a similar reason; staying in motels, trailer parks, or campgrounds due to the lack of an adequate alternative; staying in shelters or transitional housing; or sleeping in cars, parks, abandoned buildings, substandard housing, or similar settings.
Minority Serving Institutions (MSIs)
MSIs came about through historic inequities in educating minority populations. MSIs include AANAPISIs, ANNHSIs, HBCUs, HSIs, NASNTIs, PBIs and TCUs.
National Pan-Hellenic Council (NPHC)
The NPHC is a collaborative umbrella organization composed of historically African American Greek-lettered fraternities and sororities. The nine NPHC organizations are sometimes collectively referred to as the “Divine Nine.”
Native American Indian Serving, Non-Tribal Institutions (NASNTIs)
NASNTIs must have at least 10 percent of enrolled undergraduate students identifying as Native American.
Nonprofit Organization
Nonprofit organization is an organization that qualifies for tax-exempt status by the IRS because its mission and purpose are to further a social cause and provide a public benefit. Nonprofit organizations include hospitals, universities, national charities and foundations. An individual or business that donates to a nonprofit is allowed to deduct their donation from their tax return. The nonprofit, likewise, pays no taxes on any money received through fundraising.
Non-Partisan
Non-partisan means to not be biased or partisan, especially toward any political group. Free from party affiliation, bias, or designation.
Not-For-Profit organization (NFPO)
An NFPO is an organization that does not earn profit for its owners. All money earned through pursuing business activities or through donations goes right back into running the organization. However, not-for-profits are not required to operate for the benefit of the public good. A not-for-profit can simply serve the goals of its members. A good example is a sports club; the purpose of the club is to exist for its members’ enjoyment. These organizations must apply for tax-exempt status from the IRS. Money donated by an individual to an NFPO cannot be deducted on that person’s tax return.
Predominantly Black Institution (PBI)
PBI Colleges and universities that have at least 1,000 undergraduate students and over 40 percent African American students can qualify as a PBI. They also must have at least 50 percent low-income or first-generation college students. PBI is a newer designation than HBCU. They have only been recognized by Congress since 2007. Also, unlike HBCUs, most of the 156 PBIs are two-year colleges.
Predominantly White Institution (PWI)
PWI is the term used to describe institutions of higher learning in which Whites account for 50% or greater of the student enrollment.
Residency Determination Service (RDS)
Residency Determination Service is an application a student must complete to receive in-state tuition and state financial aid and scholarships in North Carolina.
Trade/Technical School
Trade or technical school is a postsecondary institution designed to train students for a specific job in a skilled trade career. Trade schools offer hands-on training to prepare students for actual work in their chosen field.
Tribal College or University (TCU)
Most TCUs are located on reservations and therefore focus heavily on maintaining tribal languages and culture. These institutions differ from NASNTIs in that they are chartered by their respective tribes.
Unaccompanied Children/Youth
Unaccompanied children/youth are children who enter the country without their parent or legal guardian and children who for other reasons have been separated from their parent or legal guardian.
Vocational School
Vocational school is another way of saying trade or technical school.
Work Study
Work study is a part-time job for undergraduate and graduate students with financial need. This allows students to earn money to help pay for their education.