Academic Year - A period of time that schools use to measure a quantity of study. For
example, a school’s academic year may consist of a fall and spring semester during which a full-
time undergraduate student must complete 24 semester hours. Academic years vary from
school to school and even between educational programs at the same school.
Accreditation - The school must meet minimum academic standards, as defined by an
accrediting body recognized by the U.S. Department of Education, to be eligible to participate in
the administration of federal student aid programs.
Accrue - The process where interest accumulates on a student loan.
Agency Verification – The process by which a student requests in writing verification if
financial aid eligibility to be submitted to a third-party agency.
Award Letter - The award letter explains the type(s) and amount(s) of financial aid the student
may be eligible for based on various determining factors. The award letter can be found on Web
Advisor/MyPortal under the financial aid section.
BankMobile – RCCD disburses financial aid funds to eligible MVC students via BankMobile
Disbursements, a technology solution, powered by BMTX, Inc.
Borrower – An individual who signed and agreed to the terms in a loan promissory note and is
responsible for repaying a loan.
Capitalized - With certain loans, such as the subsidized loans, the U.S. Department of
Education pays the interest that accrues on a loan while the student maintains at least half-time
enrollment, and during periods of deferment. However, with subsidized loans in forbearance
and unsubsidized loans in any status, a student is responsible for paying interest as it accrues.
When interest on these loans are not paid during accrual, the interest is capitalized, or added to
the principal balance, which increases the outstanding principal amount due on this loan.
Consolidation - The process of combining one or more loans into a single new loan.
Cost of Attendance (COA) - The total annual cost of attending college for any given
academic year. The COA includes tuition and fees, food and housing, allowances for books,
supplies, transportation, loan fees, and, if applicable, dependent care. It also includes
miscellaneous and personal expenses.
Default - If a student does not repay a loan according to the terms and agreements of the
signed promissory note, the student may enter into a default status. A student’s credit status,
future financial aid, purchasing cars, a house, and IRS refund may be affected if a loan is in a
default status.
Dependent student - A student who does not meet one of the criteria for an independent
student on the financial aid application(s), such as: Be at least 24 years old, married, a graduate
or professional student, a veteran, a member of the armed forces, an orphan, a ward of the
court, or someone with legal dependents other than a spouse.
Disbursement - Scheduled dates in which students will be disbursed financial aid (may include
Pell Grant, SEOG, Cal Grant, Loans).