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You are sure to come across many new words and acronyms on your search for school funding. This dictionary includes some of the most common and important terms you may see. Award Letter: This is a letter sent to you from an institution that details the types of financial aid you may expect, and it often includes the school's cost of attendance, potential loan eligibility and your expected family contribution. Typically it also includes the next steps you need to take. Award Year: This refers to the school year during which financial aid can be used. For many schools this is a 12-month period that runs from July of one year through June of the following year, to coincide with the school semesters. FINANCIAL AID DICTIONARY Capitalization: This refers to the practice of adding unpaid loan interest back to the principal balance of a loan. You might hear this term when you're weighing student loan options. Cost of Attendance (COA): This refers to the total amount it will cost you to attend a university or college. It typically is a yearly figure that includes items like tuition, school fees, housing or food allowance, books and other school supplies. COA might include additional costs depending on the institution. Data Release Number (DRN): This is a four-digit number assigned to your FAFSA application. Your DRN allows you to make corrections to your application and to release application information to additional schools that weren't originally listed on your FAFSA application. Default: This term refers to failure to repay a loan. In terms of student loans, if you default you will lose your eligibility to receive additional forms of federal student aid and may face other legal consequences. Deferment: This refers to a temporary status that allows you to postpone making loan payments. Not every loan, nor every borrower, may qualify for a deferment. The loan servicer can help determine available options.