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Packaging: The process of combining various types of student aid (grants, loans, scholarships, and employment) to attempt to meet full amount of students need. The results of packaging are most often conveyed to students in the form of an award letter.

Packaging Philosophy: The postsecondary institutions rationale for combining different types of aid to meet a students need. This varies from school to school. In talking with a schools financial aid officer, it is very important to find out where your particular case fits into the schools packaging approach.

Part-time Student: One who attends an institution on a less than-full-time basis as defined by the institution. All federal, and most state, aid programs have eligibility requirements relating to time enrollment status (full-time, half-time, part-time, etc.)

Portability: An attribute of certain student aid programs that allows an eligible student to receive funds from any eligible institution rather than one specific institution. Applies to Federal Pell Grant, as well as to some state scholarships that students may use at postsecondary institutions, including those located outside the state awarding the funds. Awards from most aid programs are not portable.

Prepayment Penalty: The charge the lender assesses to borrowers who repay a loan faster than the maximum repayment period stated in the promissory note. Federal loan programs do not have prepayment penalties.

Principal (of a loan): The amount of money borrowed through a loan; does not include interest or other charges, unless they are capitalized.

Privacy Acts: Those collective statutes that serve to protect an individual from the release of specified data without the individuals prior written consent.

Projected Year Income: Income expected to be received during the first calendar year of the award year; may also be some other 12-month period.

Promissory Note: The legal document that binds a borrower to the repayment obligations and other terms and conditions that govern a loan program. For many federal loan programs, promissory notes are now executed electronically.