Glossary of Student Loan Related Terms

Early Action

A program with earlier deadlines and earlier notification dates than the regular admissions process. Students who apply to an early action program do not commit to attending the school if admitted, unlike an early decision program. Ivy League schools do not allow you to apply to more than one Ivy early action.

Early Admission

A program that allows gifted high school juniors to skip their senior year and enroll instead in college. The term "Early Admission" is sometimes used to refer collectively to Early Action and Early Decision programs.

Early Decision

A program with earlier deadlines and earlier notification dates than the regular admissions process. Students who apply to an early decision program commit to attending the school if admitted. Unfortunately, this means the student has accepted the offer of admission before they find out about the financial aid package. You should only participate in an early decision program if the school is your first choice and you won't want to consider other schools.

ED?

U.S. Department of Education

Educational Testing Service (ETS)

Company that produces and administers the SAT and other educational achievement tests.

EFC

Expected Family Contribution

EFT

Electronic Funds Transfer

Electronic Data Exchange (EDE)

Program used by participating schools to electronically receive SARs from the federal processor. At some schools EDE allows students to electronically file their Free Application to Federal Student Aid (FAFSA).

Electronic Funds Transfer (EFT)

Used by some schools and lenders to wire funds for Stafford and PLUS loans directly to participating schools without requiring an intermediate check for the student to endorse. The money is transferred electronically instead of using paper, and thus is available to the student sooner. 

Eligible Non-Citizen

Someone who is not a U.S. citizen but is nevertheless eligible for federal student aid. Eligible non-citizens include U.S. permanent residents who are holders of valid green cards, U.S. nationals, holders of form I-94 who have been granted refugee or asylum status, and certain other non-citizens. Non-citizens who hold a student visa or an exchange visitors visa are not eligible for federal student aid.

Eligible Program

A course of study that leads to a degree or certificate and meets the U.S. Department of Education's requirements for an eligible program.

Eligible School

1. A post-secondary institution of higher education or a vocational school declared eligible by the U.S. Department of Education to participate in the FFELP. Some guarantors may require schools to complete a separate agency-specific participation agreement.2. An institution of higher education that meets Nellie Mae's lending eligibility criteria.

ELO

Expanded Lending Option

Emancipated

To release a child from the control of a parent or guardian. Declaring a child to be legally emancipated is not sufficient to release the parents or legal guardians from being responsible for providing for the child's education. The criteria for a child to be found independent are much more strict.

Endowment

Funds owned by an institution and invested to produce income to support the operation of the institution. Many educational institutions use a portion of their endowment income for financial aid. A school with a larger ratio of endowment per student is more likely to give larger financial aid packages.

Enrollment Status

An indication of whether you are a full-time or part-time student. Generally you must be enrolled at least half-time (and in some cases full-time) to qualify for financial aid.

Entitlement

Entitlement programs award funds to all qualified applicants. The Pell Grant is an example of such a program.

Equity

The dollar value of your ownership in a piece of property.

ETS

Educational Testing Service

EXCEL

A private Nellie Mae loan for families who need additional funds to pay higher education costs.

EXCEL Grad

A private Nellie Mae graduate loan program for graduate students who need additional funds to pay higher education costs. EXCEL Grad discipline based programs include: GradEXCEL, DentalEXCEL, LawEXCEL, MBA EXCEL and MedEXCEL.

Exit Counseling (or Exit Interview)

Prior to graduating withdrawing, or dropping below half-time enrollment, borrowers are required to complete exit counseling to help prepare them for repayment. Exit counseling provides valuable information about borrower's rights and responsibilities, as well as helpful money-saving ideas.

Expanded Lending Option (ELO)

Under ELO, some schools can offer higher annual and cumulative loan limits to students receiving the Perkins Loan. The ELO is restricted to schools with a Perkins Loan default rate of 15% or less.

Expected Family Contribution (EFC)

The amount a student and the student's spouse and family are expected to pay toward the student's cost of attendance.

Expected Family Contribution (EFC)

The amount of money that the family is expected to be able to contribute to the student's education, as determined by the Federal Methodology need analysis formula approved by Congress. The EFC includes the parent contribution and the student contribution, and depends on the student's dependency status, family size, number of family members in school, taxable and nontaxable income, and assets. The difference between the COA and the EFC is the student's financial need, and is used to determine the student's eligibility for need-based financial aid. If you have unusual financial circumstances (such as high medical expenses, loss of employment, or death of a parent) that may affect your ability to pay for your education, tell your financial aid administrator. He or she can adjust the COA or EFC to compensate.