Terms and Definitions Used in Financial Aid

If you have questions about a certain award or program, visit our Types of Funding webpage.

Accrued Interest

Interest that accumulates on the unpaid principal balance of a loan.

Adjusted Gross Income (AGI)

Your Adjusted Gross Income is your total, taxable income minus any adjustments to income reported on your Federal Income Tax Return.


This is the process of paying off debt (both principal and interest) by making regular payments.
This can also refer to the length of time it will take for your payments to pay off the debt. For example, “if you pay $300 a month, your loan will have an amortization of 10 years.”

Annual Student Loan Acknowledgment

This is a required process for students who want to take out a student loan at Bates Technical College. This is an acknowledgement of your responsibility to pay back your loan. Students will need to complete this on the www.studentaid.gov website for every academic year they request a loan.

Associate degree

An associate degree is an undergraduate degree awarded after completing a two-year, post-secondary program.

Award Letter

This is a document that details which awards you are eligible to receive for the academic year. A new award letter will be sent to you whenever there is a change to any of your awards. This will usually happen close to the start of the quarter when our office adjusts students’ awards to reflect their current enrollment status.

Bachelor’s Degree

A bachelor’s (baccalaureate) degree is an undergraduate degree awarded after completing a four-year, post-secondary program.


This is also referred to as a student’s Cost of Attendance (COA).
Please see our Cost of Attendance webpage for more information.


Capitalization is when unpaid interest is added to the principal balance of a loan.

Central Processing System (CPS)

This is the system that processes FAFSA information. This system calculates students’ eligibility for financial aid and Expected Family Contribution (EFC).


Consolidation is only available for federal loans, not private loans. You can consolidate federal student loans into one payment plan. Your monthly payment may decrease but your number of payments will increase, resulting in a higher amount of interest paid over the lifetime of the loan.

Cost of Attendance (COA)

See our Cost of Attendance webpage for more information.


If the borrower of a loan does not make payment for an extended period of time, when payment is required, their loan can go into default. Students with a default federal student loan are ineligible to receive any federal financial aid.

With regular, on-time payments, a borrower can bring their loan out of default.
If you have a default loan, please contact your loan servicer to work out a payment plan. If you do not know who your loan servicer is, contact the National Students Loan Data System (NSLDS) for more details.

For more loan counseling resources, visit our Loans webpage.


This is an authorized period of time where your lender agrees to postpone loan payments. Interest will not accrue on subsidized loans during deferment.

Dependent Student

Most students under the age of 24, or who will not turn 24 before December 31 of the award year, are considered to be dependent.

Dependent students must provide information for at least one parent when applying for financial aid. Visit the Federal Student Aid (FSA) office’s Dependency/Independent Student webpage for a list of factors that determine your dependency status.

If you answered “no” to all of the FSA’s dependency questions, you may still be able to apply for financial aid without providing a parent’s information. Contact the Financial Aid Office for more information.


A disbursement occurs when your financial aid awards are applied to any current, outstanding tuition and fees for the quarter. This occurs on the second day of the quarter. See the college calendar for specific dates.

For more information on refunds, see the definition for “Refund” on this webpage.

ED, DOE, USED, DE (U.S. Department of Education)

U.S. Department of Education is a government agency that administers several student financial aid programs. These programs include the Federal Pell Grant, Federal Work Study Program, and Federal Direct Loan.


Expected Family Contribution (EFC)

Using a need analysis formula set by Congress, Federal Student Aid uses the information the student reported on his/her application to calculate the Expected Family Contribution (EFC). This number represents the amount the student and the student’s family are expected to contribute toward the student’s education. The school uses the EFC to determine how much federal student aid the student may be eligible to receive.

Electronic Funds Transfer

This is also known as “direct deposit.” This is a type of refund preference that you can select with BankMobile. If you select this option, BankMobile will deposit your refunds directly into your savings or checking account.

Eligible non-citizen

An “eligible non-citizen” is a student who is not a U.S. citizen but is eligible to receive Federal student aid.
Please visit the Federal Student Aid’s (FSA) Eligibility for Non-U.S. Citizens webpage for more information on different categories of eligible non-citizens.

Enrollment Status

A student’s enrollment status is determined by how many financial aid eligible units/credits they are enrolled in for the quarter.
See our FAQ’s for Financial Aid page
for more details on how enrollment status is determined.

Entrance Counseling

See “Annual Student Loan Acknowledgment.”

Exit Counseling

Students who are leaving school, graduating, or dropping below half-time enrollment must complete student loan exit counseling.

Your exit counseling will help you understand your repayment options and responsibilities.
Complete your undergraduate student loan exit counseling on the FSA’s Loan Exit Counseling webpage.

FAA (Financial Aid Administrator)

These are staff members at an eligible institution who help award and disburse monetary resources.

FAFSA (Free Application for Federal Student Aid)

This is an application that is used to determine a student’s eligibility for several forms of federal aid. You can complete the FAFSA at www.studentaid.gov. If you need help completing your FAFSA, see our additional resources on STEP 3 of the Steps to Enrollment webpage.

Federal Methodology

The Federal Methodology is a formula used by the federal government to determine a student’s eligibility for financial aid.


FERPA is the Family Educational Rights and Privacy Act, which protects students’ personally identifiable information in education records.

Visit the Registration Office’s FERPA webpage for more information.

If you would like our staff members to discuss your information with anyone other than yourself, please complete a Student Release of Information form. You can find the form on the Bates Forms webpage.

Financial Aid

Financial aid includes funding processed by the Financial Aid office and other offices as well.

Visit Bates’ Types of Funding webpage for more information on the types of aid that are available to students.

Financial Aid Package

This is the combined amount of all financial aid that a student receives.
Students can view their awards on the Financial Aid Student Portal.


This is an authorized period of time where your lender agrees to postpone, reduce or extend loan payments. Interest will continue to accrue, resulting in an increased principal balance of the loan.

Garnishment of Wages

If the borrower of a federal student loan stops making payments, they can be subject to garnishment of their wages. This is where the federal government deducts a portion of the borrower’s paycheck in order to force payment of a loan that is in default.


Grants are financial aid funds that do not have to be paid back and are awarded based on a student’s financial need.

Independent Student

Independent students do not need to provide a parent’s information when applying for financial aid.

Students over the age of 24, or who will turn 24 before December 31 of the award year, are considered to be independent.

For a list of factors that determine the dependency status of students under the age of 24, visit the Federal Student Aid (FSA) office’s Dependency/Independent Student webpage.


A percentage of the principal balance of your loan. Interest will have to be paid off in addition to the principal.

Less than half-time

Students enrolled in less that 6 financial aid eligible units/credits have an enrollment status of less than half-time. Less than half-time students may be ineligible for certain types of financial aid.


Loans are a type of financial aid that will need to be paid back. The amount you borrow is the principal. Your interest rate is a percentage, your interest every payment period will be this percentage of your principal balance.

Pell Grant

Federal Pell Grants are awarded to qualified undergraduate students who are enrolled in an approved program (career pathway). Awards will be adjusted based on enrollment. The U.S. Congress has established a lifetime limit of 6 years or 18 quarters of Pell Grants.

Plus Loan

Direct PLUS Loans are loans that a parent takes out in order to pay for their dependent student’s educational expenses. A completed FASFA is required to get a PLUS loan. Parents must complete the Plus Loan Application, Master Promissory Note, and Annual Student Loan Acknowledgement prior to the first disbursement of the academic year.


Education beyond the high school level.


The amount still owed on a loan, upon which interest will be charged.


Refunds are any funds that you will receive directly. When it comes to financial aid, your refund is what is sent to you after your awards have been disbursed and applied towards any outstanding tuition and fees.

Refund = Quarterly Awards – Unpaid Tuition and Fees

View you quarterly awards on the Financial Aid Student Portal.
View your quarterly tuition and fees by going to my.batestech.edu > Kiosk > My Schedule. If you are not currently enrolled in classes, you can download the Tuition and Fees Schedule from the Registration Office’s Tuition and Fees webpage.
Refunds will appear on your BankMobile account.

Repayment Schedule

This is a plan which details your principal and interest due each installment, the number of payments required to pay off the loan, your interest rate, and the due dates of your payments.

To establish, modify, or check your repayment schedule, contact your loan servicer. If you do not know who your loan servicer is, contact the National Students Loan Data System (NSLDS) for more details.

Satisfactory Academic Progress (SAP)

In order to be eligible for funding from the Financial Aid office, students must maintain a satisfactory SAP status. Eligibility standards are different for the Workforce Education Services (WES) office.

For more information on how your SAP status is determined, please visit the SAP Policy webpage.


Scholarships are a type of Financial Aid funding that usually does not have to be paid back. Scholarship recipients typically must excel in a particular field or be a member of a specific group, depending on the scholarship.

The Bates Foundation helps students find scholarships for which they are eligible. Visit the Apply for Scholarships webpage for more information.


The federal government will pay the interest of a subsidized loan while the student is attending school at least half-time or during grace and deferment periods.

Title IV Student Aid

Title IV (4) aid programs are financial aid programs authorized by the Federal Government in the Higher Education Act. For more information, visit the Types of Funding webpage.


Students must make regular, on-time payments on unsubsidized loans even when the student is enrolled in school or during grace periods. If there is unpaid interest for your loan by the time your payment is due, any unpaid interest will be added to the principal of the loan and contribute to a larger amount of interest for your next payment.

Work-Study Program

The Bates Technical College Financial Aid Office offers on-campus work-study positions that help provide jobs for eligible students.

For more information, visit the Study Work-Study Program webpage.








Bates Technical College offers classes on campus, online and hybrid. For Fall Quarter 2021, vaccinations will be required. Learn more about vaccinations and our COVID-19 response on the COVID-19 resource page.