What does "setup" mean?

Setup is a status that applies to Financial Aid applications, individual awards, and individual disbursements.

Regarding applications and awards...

...Setup means that you are still nailing down the details on the application or award. Because the details are subject to change, to avoid confusing the student, applications and awards in Setup status are invisible to the student. (in fact, the student's Financial Aid tab will be invisible to them altogether if the only applications or awards on it are in Setup status). Once you've got the details figured out, you can change the application's status to In Progress or the award's status to Offered.

Regarding disbursements...

Setup is the status applied to them by default until both the application and the award they're a part of is Accepted. When that happens, the disbursement status changes to Scheduled. Setup disbursements cannot be included in a batch (and, therefore, cannot be disbursed).