Financial Aid Glossary

Cost of Attendance (COA): The Cost of Attendance consists of the sum of educational costs payable to the school (also referred to as direct or billable costs) and costs paid to others (or indirect, non-billable or discretionary) costs. The Cost of Attendance represents the highest dollar amount of financial aid a student can receive during an award year.

Costs Paid by Others: Costs paid by others (also referred to as indirect, non-billable or additional costs), are other expenses not paid directly to the school, but associated with receiving an education. These expenses are estimated by the school and may differ from student to student based on their individual circumstances. These expenses may include books, course materials, supplies, equipment, transportation, parking, personal expenses, childcare costs, computer costs, disability expenses, licensure expenses and off campus rent and food.

Costs Payable to the School: Costs payable to the school (also referred to as direct or billable costs) generally include tuition, fees, housing and meals/food (for students residing on campus), health insurance (if minimum insurance coverage is not documented), or any other expenses paid to the school for enrollment.

Education Loan: Money borrowed from the federal government, a college or university, or a private source like a bank or financial institution to pay for educational expenses and must be paid back with interest.

Federal Loan: Also known as the Direct Loan Program, which allows eligible students and parents to borrow directly from the U.S. Department of Education at participating colleges or universities. Federal student loans include Direct Subsidized, Direct Unsubsidized and the Direct PLUS programs for parents of dependent students.

Federal Direct Subsidized Student Loan: A Direct Subsidized Loan is an undergraduate federal student loan based on financial need and offers students a reduced, fixed interest rate and flexible repayment terms. Interest is subsidized, meaning it does not accrue to the borrower, while in an in-school, grace, or deferment period. Annual and aggregate limits apply.

Federal Direct Unsubsidized Student Loan: An unsubsidized loan offers students a fixed interest rate and flexible repayment terms. It is not based on financial need. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins. Annual and aggregate limits apply.

Federal Direct Parent PLUS Loan: Direct Parent PLUS Loans are federal loans that parents of dependent or undergraduate students can use to help pay for education expenses. Parents must pass a credit check for adverse credit history to qualify for PLUS loans. Annual and aggregate loan limits apply for parents of new students beginning July 1, 2026.

Federal Pell Grant: The Pell Grant is a federal grant program designed to assist undergraduate students in low- and moderate-income households to pay for college. The award amount is based on the cost of the institution, SAI, and enrollment status, and is subject to an aggregate limit.

Federal Supplemental Educational Opportunity Grant (FSEOG): A federal grant provided by the institution to qualified undergraduate students who demonstrate exceptional financial need and does not need to be repaid. The amount of funding from this program varies by institution.

Grants and Scholarships: Any money provided to students that does not have to be repaid. They can be called grants, scholarships, tuition remissions, gift aid, or tuition waivers. Grants and scholarships are provided based on many different factors.

HMC Work: HMC work provides funding to undergraduate students with financial need for on-campus part time jobs. Unlike grants and loans, HMC work is paid to students as they earn the funds by working.

Need: The student’s Cost of Attendance minus their Student Aid Index.

Need-based Aid: Financial assistance provided to students based on their financial situation, determined by completing FAFSA and CSS Profile. Need-based financial aid can take different forms, including grants, scholarships, HMC work, and low-interest loans, like the federal direct subsidized loan.

Net Price: The difference between the cost of attendance and all grants and scholarships. Net price reflects what the student is expected to pay for their education on their own and can be covered through a variety of sources, including savings, student employment, institutional payment plans, or educational loans.

Origination Fees: A percentage of the loan amount charged by the lender for processing your loan. It is compensation for putting the loan in place.

Other Funding Options: Funding options outside of grants and scholarships that a student and their family may use to pay any remaining costs or expenses. This may include loans, student employment, institutional payment plans, or personal savings.

Private Loan: A student or parent loan from a bank, credit union, private company, a nonprofit, or state-affiliated lender, or from the college or university directly to pay for educational costs. Interest begins to accrue when the loan is disbursed and repayment begins while the student is still enrolled in school.

Student Aid Index: The SAI is the eligibility index used to determine your eligibility for federal, and in some instances, state and institutional need-based student financial aid. Students with a higher SAI are eligible for less need-based financial aid. It is based upon the information provided by the student and their family on the FAFSA.

Tuition Payment Plan: A tuition payment plan offered by an institution may allow students to pay direct costs over time. HMC offers a monthly payment plan where annual charges may be paid in 8 monthly installments, four per semester. For the fall semester, monthly installments are due August through November. For the spring semester, monthly Installments are due January through April. There is a $50 fee per semester for participation in the Monthly Payment Plan.

VA Education Benefits: Benefits that help Veterans, service members, and their qualified family members with needs like paying college tuition, finding the right school or training program, and getting career counseling. You can find more information here: https://www.va.gov/education/

For more information visit https://studentaid.gov.