Information for parents future students

loan servicer A company that collects payments, responds to customer service inquiries, and performs other administrative duties associated with maintaining a Federal student loan on behalf of a lender or the U.S. Department of Education (ED). loan servicer A company that collects payments, responds to customer service inquiries, and performs other administrative duties associated with maintaining a Federal student loan on behalf of a lender or the U.S. Department of Education (ED). Loan servicer A company that collects payments, responds to customer service inquiries, and performs other administrative duties associated with maintaining a Federal student loan on behalf of a lender or the U.S. Department of Education (ED). Loan Servicers A company that collects payments, responds to customer service inquiries, and performs other administrative duties associated with maintaining a Federal student loan on behalf of a lender or the U.S. Department of Education (ED). loan servicers A company that collects payments, responds to customer service inquiries, and performs other administrative duties associated with maintaining a Federal student loan on behalf of a lender or the U.S. Department of Education (ED). loan servicer's A company that collects payments, responds to customer service inquiries, and performs other administrative duties associated with maintaining a Federal student loan on behalf of a lender or the U.S. Department of Education (ED). academic year The amount of academic work you must complete each year, and the time period in which you are expected to complete it, as defined by your school. Academic Years The amount of academic work you must complete each year, and the time period in which you are expected to complete it, as defined by your school. academic year The amount of academic work you must complete each year, and the time period in which you are expected to complete it, as defined by your school. academic years The amount of academic work you must complete each year, and the time period in which you are expected to complete it, as defined by your school. Accredited A school that meets standards established by a national or regional accrediting agency recognized by the U.S. Department of Education. A school must be accredited to pay Federal financial aid to an eligible student. accredited A school that meets standards established by a national or regional accrediting agency recognized by the U.S. Department of Education. A school must be accredited to pay Federal financial aid to an eligible student. accrue The process of interest accumulating on the money you deposit in your savings account. Accrues The process of interest accumulating on the money you deposit in your savings account. accrue The process of interest accumulating on the money you deposit in your savings account. accrues The process of interest accumulating on the money you deposit in your savings account. Adjusted Gross Income Your or your family’s wages, salaries, interest, dividends, etc., minus certain deductions from income as reported on a Federal income tax return. AGI Your or your family’s wages, salaries, interest, dividends, etc., minus certain deductions from income as reported on a Federal income tax return. adjusted gross income Your or your family’s wages, salaries, interest, dividends, etc., minus certain deductions from income as reported on a Federal income tax return. Aggregate Loan Limit The maximum amount of Federal student loans that you are allowed to borrow. aggregate loan limit The maximum amount of Federal student loans that you are allowed to borrow. Annual Loan Limit The maximum amount you may borrow for your grade level for one academic year. annual loan limit The maximum amount you may borrow for your grade level for one academic year. Arkansas Academic Challenge Scholarship The Academic Challenge Program provides scholarships to Arkansas residents pursuing a higher education. Funded in large part by the Arkansas Scholarship Lottery, the Academic Challenge Scholarship is available to students regardless of their academic status, whether just graduating from high school, currently enrolled in college, enrolling in college for the first time, or re-enrolling after a period of time out of college. arkansas academic challenge scholarship The Academic Challenge Program provides scholarships to Arkansas residents pursuing a higher education. Funded in large part by the Arkansas Scholarship Lottery, the Academic Challenge Scholarship is available to students regardless of their academic status, whether just graduating from high school, currently enrolled in college, enrolling in college for the first time, or re-enrolling after a period of time out of college. Associate’s Degrees An undergraduate academic degree awarded for a course of study that generally takes a minimum of two full-time academic years to complete. associate’s degrees An undergraduate academic degree awarded for a course of study that generally takes a minimum of two full-time academic years to complete. associate's degree An undergraduate academic degree awarded for a course of study that generally takes a minimum of two full-time academic years to complete. Award Letter An offer from a school that states the type and amount of financial aid the school is willing to provide if you accept admission, register, and begin attendance at that school. award letter An offer from a school that states the type and amount of financial aid the school is willing to provide if you accept admission, register, and begin attendance at that school. Award Year A school year for which financial aid is used to fund your education. Generally, this is the 12-month period that begins on July 1 of one year and ends on June 30 of the following year. award year A school year for which financial aid is used to fund your education. Generally, this is the 12-month period that begins on July 1 of one year and ends on June 30 of the following year. Budget A financial plan that helps you track your money, make informed spending decisions, and plan for your financial goals. budget A financial plan that helps you track your money, make informed spending decisions, and plan for your financial goals. capitalized The addition of unpaid interest to the principal balance of your Federal student loan. If the interest is not paid as it accrues during periods of in-school status, grace period, deferment, or forbearance, your loan servicer may capitalize the interest. Capitalization may increase the amount of your monthly payment and the total amount to be repaid over the life of the loan. capitalized The addition of unpaid interest to the principal balance of your Federal student loan. If the interest is not paid as it accrues during periods of in-school status, grace period, deferment, or forbearance, your loan servicer may capitalize the interest. Capitalization may increase the amount of your monthly payment and the total amount to be repaid over the life of the loan. Certificate of Deposit A bank deposit that earns a fixed interest rate for a specified amount of time. Often there is a penalty for withdrawing money before the end of the deposit period. certificate of deposit A bank deposit that earns a fixed interest rate for a specified amount of time. Often there is a penalty for withdrawing money before the end of the deposit period. Collateral Property or other assets a borrower pledges as a guarantee that a loan will be paid. If the loan isn’t repaid, the bank can take the collateral. collateral Property or other assets a borrower pledges as a guarantee that a loan will be paid. If the loan isn’t repaid, the bank can take the collateral. collection agency An entity that recovers unpaid debt from borrowers who have defaulted on their Federal student loan. collection agency An entity that recovers unpaid debt from borrowers who have defaulted on their Federal student loan. Collection Agency An entity that recovers unpaid debt from borrowers who have defaulted on their Federal student loan. collection agency An entity that recovers unpaid debt from borrowers who have defaulted on their Federal student loan. Collection Costs Expenses charged on a defaulted Federal student loan that are added to the outstanding principal balance of the loan. collection costs Expenses charged on a defaulted Federal student loan that are added to the outstanding principal balance of the loan. Collection Cost Expenses charged on a defaulted Federal student loan that are added to the outstanding principal balance of the loan. collection cost Expenses charged on a defaulted Federal student loan that are added to the outstanding principal balance of the loan. Collection Fees Expenses charged on a defaulted Federal student loan that are added to the outstanding principal balance of the loan. Collection Fee Expenses charged on a defaulted Federal student loan that are added to the outstanding principal balance of the loan. collection fees Expenses charged on a defaulted Federal student loan that are added to the outstanding principal balance of the loan. collection fee Expenses charged on a defaulted Federal student loan that are added to the outstanding principal balance of the loan. Consolidation The process of combining one or more Federal student loans into a single new loan. consolidation The process of combining one or more Federal student loans into a single new loan. Cost of Attendance The estimated total amount it will cost you to attend a particular school. COA for a full-time student includes tuition and fees, room and board, books, supplies, transportation, loan fees, and dependent care. It can also include miscellaneous personal expenses including an allowance for a personal computer and costs related to a disability. Cost of Attendance The estimated total amount it will cost you to attend a particular school. COA for a full-time student includes tuition and fees, room and board, books, supplies, transportation, loan fees, and dependent care. It can also include miscellaneous personal expenses including an allowance for a personal computer and costs related to a disability. cost of attendance The estimated total amount it will cost you to attend a particular school. COA for a full-time student includes tuition and fees, room and board, books, supplies, transportation, loan fees, and dependent care. It can also include miscellaneous personal expenses including an allowance for a personal computer and costs related to a disability. cost of attendance (COA) The estimated total amount it will cost you to attend a particular school. COA for a full-time student includes tuition and fees, room and board, books, supplies, transportation, loan fees, and dependent care. It can also include miscellaneous personal expenses including an allowance for a personal computer and costs related to a disability. COA The estimated total amount it will cost you to attend a particular school. COA for a full-time student includes tuition and fees, room and board, books, supplies, transportation, loan fees, and dependent care. It can also include miscellaneous personal expenses including an allowance for a personal computer and costs related to a disability. credit hours A unit of measure by which schools assess academic progress usually based on the number of classroom hours in a given term. credit hours A unit of measure by which schools assess academic progress usually based on the number of classroom hours in a given term. credit hour A unit of measure by which schools assess academic progress usually based on the number of classroom hours in a given term. Credit Hour A unit of measure by which schools assess academic progress usually based on the number of classroom hours in a given term. Credit Report A report produced by a national credit bureau and provided to a lender in order for them to assess your creditworthiness. credit report A report produced by a national credit bureau and provided to a lender in order for them to assess your creditworthiness. Credit Reporting Agencies Agencies that track and report your credit, including your history of paying bills, and calculate your ability to repay future loans. credit reporting agencies Agencies that track and report your credit, including your history of paying bills, and calculate your ability to repay future loans. credit reporting agency Agencies that track and report your credit, including your history of paying bills, and calculate your ability to repay future loans. Credit Reporting Agency Agencies that track and report your credit, including your history of paying bills, and calculate your ability to repay future loans. Credit reporting agencies Agencies that track and report your credit, including your history of paying bills, and calculate your ability to repay future loans. Credit Score A number that indicates a person’s creditworthiness or likelihood of repaying a debt. The score is based on several factors such as the amount of money currently owed, payment history, and length of credit history. credit score A number that indicates a person’s creditworthiness or likelihood of repaying a debt. The score is based on several factors such as the amount of money currently owed, payment history, and length of credit history. defaulted The failure to repay a Federal student loan according to the terms of the promissory note. For most student loans, you are in default if you have not made a payment in more than 270 days. defaulted The failure to repay a Federal student loan according to the terms of the promissory note. For most student loans, you are in default if you have not made a payment in more than 270 days. defaulting The failure to repay a Federal student loan according to the terms of the promissory note. For most student loans, you are in default if you have not made a payment in more than 270 days. default The failure to repay a Federal student loan according to the terms of the promissory note. For most student loans, you are in default if you have not made a payment in more than 270 days. Defaulting The failure to repay a Federal student loan according to the terms of the promissory note. For most student loans, you are in default if you have not made a payment in more than 270 days. Default The failure to repay a Federal student loan according to the terms of the promissory note. For most student loans, you are in default if you have not made a payment in more than 270 days. Deferment A period of time in which you may postpone payment on a Federal student loan under certain conditions. During this time, interest does not accrue on Federal Subsidized Loans and Federal Perkins Loans. For all other Federal student loans, interest continues to accrue during the deferment period. Unpaid interest that has accrued during the deferment period may be capitalized and added to the principal balance of the loan, increasing the total amount you owe. deferment A period of time in which you may postpone payment on a Federal student loan under certain conditions. During this time, interest does not accrue on Federal Subsidized Loans and Federal Perkins Loans. For all other Federal student loans, interest continues to accrue during the deferment period. Unpaid interest that has accrued during the deferment period may be capitalized and added to the principal balance of the loan, increasing the total amount you owe. Deferments A period of time in which you may postpone payment on a Federal student loan under certain conditions. During this time, interest does not accrue on Federal Subsidized Loans and Federal Perkins Loans. For all other Federal student loans, interest continues to accrue during the deferment period. Unpaid interest that has accrued during the deferment period may be capitalized and added to the principal balance of the loan, increasing the total amount you owe. deferments A period of time in which you may postpone payment on a Federal student loan under certain conditions. During this time, interest does not accrue on Federal Subsidized Loans and Federal Perkins Loans. For all other Federal student loans, interest continues to accrue during the deferment period. Unpaid interest that has accrued during the deferment period may be capitalized and added to the principal balance of the loan, increasing the total amount you owe. Delinquent A Federal student loan is delinquent when a loan payment is not received by the due date. delinquency A Federal student loan is delinquent when a loan payment is not received by the due date. delinquent A Federal student loan is delinquent when a loan payment is not received by the due date. dependent undergraduate students An undergraduate student who is single, under 24 years of age, has no legal dependents, is not an orphan or ward of the court, and is not a veteran of or serving on active duty in the U.S. Armed Forces. Parents of a dependent student must submit parental information on the FAFSA for their child to be considered for Federal financial aid. dependent undergraduate student An undergraduate student who is single, under 24 years of age, has no legal dependents, is not an orphan or ward of the court, and is not a veteran of or serving on active duty in the U.S. Armed Forces. Parents of a dependent student must submit parental information on the FAFSA for their child to be considered for Federal financial aid. Dependent Student An undergraduate student who is single, under 24 years of age, has no legal dependents, is not an orphan or ward of the court, and is not a veteran of or serving on active duty in the U.S. Armed Forces. Parents of a dependent student must submit parental information on the FAFSA for their child to be considered for Federal financial aid. dependent student An undergraduate student who is single, under 24 years of age, has no legal dependents, is not an orphan or ward of the court, and is not a veteran of or serving on active duty in the U.S. Armed Forces. Parents of a dependent student must submit parental information on the FAFSA for their child to be considered for Federal financial aid. dependent An undergraduate student who is single, under 24 years of age, has no legal dependents, is not an orphan or ward of the court, and is not a veteran of or serving on active duty in the U.S. Armed Forces. Parents of a dependent student must submit parental information on the FAFSA for their child to be considered for Federal financial aid. Dependent An undergraduate student who is single, under 24 years of age, has no legal dependents, is not an orphan or ward of the court, and is not a veteran of or serving on active duty in the U.S. Armed Forces. Parents of a dependent student must submit parental information on the FAFSA for their child to be considered for Federal financial aid. Direct Consolidation loans A Federal loan made by the U.S. Department of Education (ED) that combines one or more of your Federal student loans into one new loan. direct consolidation loan A Federal loan made by the U.S. Department of Education (ED) that combines one or more of your Federal student loans into one new loan. Direct Consolidation Loans A Federal loan made by the U.S. Department of Education (ED) that combines one or more of your Federal student loans into one new loan. direct consolidation loans A Federal loan made by the U.S. Department of Education (ED) that combines one or more of your Federal student loans into one new loan. Direct Consolidation Loan A Federal loan made by the U.S. Department of Education (ED) that combines one or more of your Federal student loans into one new loan. Direct Deposit An automatic electronic deposit of your paycheck made by your employer into your bank account. direct deposit An automatic electronic deposit of your paycheck made by your employer into your bank account. Direct Loan Program The Federal program that provides loans to eligible student and parent borrowers under Title IV of the Higher Education Act. Funds are provided by the Federal government to eligible borrowers through participating schools. direct loan program The Federal program that provides loans to eligible student and parent borrowers under Title IV of the Higher Education Act. Funds are provided by the Federal government to eligible borrowers through participating schools. Direct Loan A Federal student loan that eligible students and parents at participating schools borrow directly from the U.S. Department of Education (ED). Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans are types of Direct Loans. direct loan A Federal student loan that eligible students and parents at participating schools borrow directly from the U.S. Department of Education (ED). Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans are types of Direct Loans. Direct PLUS Loans A Federal student loan available to graduate students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Direct Plus Loan A Federal student loan available to graduate students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Direct Plus Loans A Federal student loan available to graduate students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. direct plus loan A Federal student loan available to graduate students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. direct plus loans A Federal student loan available to graduate students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Direct PLUS A Federal student loan available to graduate students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Direct PLUS loans A Federal student loan available to graduate students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Direct PLUS Loan A Federal student loan available to graduate students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Direct Subsidized Loan A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. direct subsidized loan A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. direct subsidized loans A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. Direct Subsidized loans A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. Direct Unsubsidized Loan A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. direct unsubsidized loan A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Direct Unsubsidized loans A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. direct subsidized loans A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Disbursement Payment of Federal student aid made to you by the school. You will generally receive your Federal student aid in two or more payments. disbursement Payment of Federal student aid made to you by the school. You will generally receive your Federal student aid in two or more payments. Disbursements Payment of Federal student aid made to you by the school. You will generally receive your Federal student aid in two or more payments. disbursements Payment of Federal student aid made to you by the school. You will generally receive your Federal student aid in two or more payments. Discharged The release of a borrower from the obligation to repay his or her Federal student loan. discharged The release of a borrower from the obligation to repay his or her Federal student loan. Discharge The release of a borrower from the obligation to repay his or her Federal student loan. discharge The release of a borrower from the obligation to repay his or her Federal student loan. Endorser A person who does not have an adverse credit history and agrees to repay the Federal student loan if the borrower does not repay it. endorser A person who does not have an adverse credit history and agrees to repay the Federal student loan if the borrower does not repay it. enrollment status Information reported by your school that indicates whether you are enrolled full time, half time, less than half time, withdrawn, graduated, etc. Generally, you must be enrolled at least half time to qualify for Federal financial aid. Information reported by your school that indicates whether you are enrolled full time, half time, less than half time, withdrawn, graduated, etc. Generally, you must be enrolled at least half time to qualify for Federal financial aid. Entrance Counseling A mandatory information session that takes place before you receive your first Federal student loan that explains your responsibilities and rights as a student borrower. entrance counseling A mandatory information session that takes place before you receive your first Federal student loan that explains your responsibilities and rights as a student borrower. exit counseling A mandatory information session that takes place when you graduate or attend school less than half time that explains your loan repayment responsibilities and when repayment begins. exit counseling A mandatory information session that takes place when you graduate or attend school less than half time that explains your loan repayment responsibilities and when repayment begins. Expected Family Contribution The amount your family is expected to contribute toward your cost of education based on your family’s income, net assets, savings, household size, and number of children in college. Expected Family Contribution The amount your family is expected to contribute toward your cost of education based on your family’s income, net assets, savings, household size, and number of children in college. EFC The amount your family is expected to contribute toward your cost of education based on your family’s income, net assets, savings, household size, and number of children in college. expected family contribution (efc) The amount your family is expected to contribute toward your cost of education based on your family’s income, net assets, savings, household size, and number of children in college. expected family contribution (EFC) The amount your family is expected to contribute toward your cost of education based on your family’s income, net assets, savings, household size, and number of children in college. expected family contribution The amount your family is expected to contribute toward your cost of education based on your family’s income, net assets, savings, household size, and number of children in college. efc The amount your family is expected to contribute toward your cost of education based on your family’s income, net assets, savings, household size, and number of children in college. Federal Deposit Insurance Corporation A public corporation that insures deposits of member banks up to a specific amount. federal deposit corporation A public corporation that insures deposits of member banks up to a specific amount. FDIC A public corporation that insures deposits of member banks up to a specific amount. Federal Deposit Insurance Corporation (FDIC) A public corporation that insures deposits of member banks up to a specific amount. Federal Family Education Loan Stafford Under this program, private lenders provided loans to students that were guaranteed by the Federal government. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new Federal student loans are made directly from the U.S. Department of Education (ED) under the Direct Loan Program. federal family education loan (ffel) stafford Under this program, private lenders provided loans to students that were guaranteed by the Federal government. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new Federal student loans are made directly from the U.S. Department of Education (ED) under the Direct Loan Program. ffel Under this program, private lenders provided loans to students that were guaranteed by the Federal government. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new Federal student loans are made directly from the U.S. Department of Education (ED) under the Direct Loan Program. federal family education loan stafford Under this program, private lenders provided loans to students that were guaranteed by the Federal government. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new Federal student loans are made directly from the U.S. Department of Education (ED) under the Direct Loan Program. FFEL Under this program, private lenders provided loans to students that were guaranteed by the Federal government. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new Federal student loans are made directly from the U.S. Department of Education (ED) under the Direct Loan Program. Federal Family Education Loan Stafford Under this program, private lenders provided loans to students that were guaranteed by the Federal government. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new Federal student loans are made directly from the U.S. Department of Education (ED) under the Direct Loan Program. Federal grants Financial aid, usually based on financial need, that does not need to be repaid. federal grants Financial aid, usually based on financial need, that does not need to be repaid. federal grant Financial aid, usually based on financial need, that does not need to be repaid. Federal Grant Financial aid, usually based on financial need, that does not need to be repaid. Federal Pell Grant Lifetime Eligibility Used The amount of all Federal Pell Grant aid (in percentage) awarded to you, divided by the amount of Pell Grant aid you would have been eligible to receive based on full-time enrollment. The amount of Federal Pell Grant funds you may receive is limited by Federal law to be the equivalent of six years of Pell Grant funding. Federal Pell Grant LEU The amount of all Federal Pell Grant aid (in percentage) awarded to you, divided by the amount of Pell Grant aid you would have been eligible to receive based on full-time enrollment. The amount of Federal Pell Grant funds you may receive is limited by Federal law to be the equivalent of six years of Pell Grant funding. Federal Pell Grant Lifetime Eligibility Used The amount of all Federal Pell Grant aid (in percentage) awarded to you, divided by the amount of Pell Grant aid you would have been eligible to receive based on full-time enrollment. The amount of Federal Pell Grant funds you may receive is limited by Federal law to be the equivalent of six years of Pell Grant funding. Federal Pell Grant A Federal grant for undergraduate students with financial need. federal pell grant A Federal grant for undergraduate students with financial need. Federal Perkins Loan A Federal student loan funded by the Federal government and administered by the school to undergraduate and graduate students. The amount awarded is based on financial need and the funds available at the school. federal perkins loan A Federal student loan funded by the Federal government and administered by the school to undergraduate and graduate students. The amount awarded is based on financial need and the funds available at the school. Federal Perkins Loans A Federal student loan funded by the Federal government and administered by the school to undergraduate and graduate students. The amount awarded is based on financial need and the funds available at the school. federal perkins loans A Federal student loan funded by the Federal government and administered by the school to undergraduate and graduate students. The amount awarded is based on financial need and the funds available at the school. Federal Student Aid ID A username and password combination that serves as a student’s or parent’s identifier to allow access to personal information in various U.S. Department of Education systems and acts as a digital signature on some online forms. federal student aid ID A username and password combination that serves as a student’s or parent’s identifier to allow access to personal information in various U.S. Department of Education systems and acts as a digital signature on some online forms. FSA ID A username and password combination that serves as a student’s or parent’s identifier to allow access to personal information in various U.S. Department of Education systems and acts as a digital signature on some online forms. federal student aid id (FSA ID) A username and password combination that serves as a student’s or parent’s identifier to allow access to personal information in various U.S. Department of Education systems and acts as a digital signature on some online forms. Federal Student Aid ID A username and password combination that serves as a student’s or parent’s identifier to allow access to personal information in various U.S. Department of Education systems and acts as a digital signature on some online forms. Federal student aid Financial aid from the Federal government that is used to help pay for your education expenses at an eligible school. Grants, loans, and work study are types of Federal student aid. You must complete the FAFSA to apply for this aid. federal student aid Financial aid from the Federal government that is used to help pay for your education expenses at an eligible school. Grants, loans, and work study are types of Federal student aid. You must complete the FAFSA to apply for this aid. Federal Subsidized Loan A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. federal subsidized loan A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. Federal Subsidized A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. federal subsidized A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. Federal Supplemental Educational Opportunity Grant A Federal grant for students who have the most exceptional financial need. Students who receive Federal Pell Grants have priority. A FSEOG is awarded by your school’s financial aid office. federal supplemental educational opportunity grant A Federal grant for students who have the most exceptional financial need. Students who receive Federal Pell Grants have priority. A FSEOG is awarded by your school’s financial aid office. FSEOG A Federal grant for students who have the most exceptional financial need. Students who receive Federal Pell Grants have priority. A FSEOG is awarded by your school’s financial aid office. Federal Supplemental Educational Opportunity Grant A Federal grant for students who have the most exceptional financial need. Students who receive Federal Pell Grants have priority. A FSEOG is awarded by your school’s financial aid office. Federal Unsubsidized Loan A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. federal unsubsidized loan A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Federal Work Study Program A Federal student aid program that provides part-time employment to help pay your educational expenses while you are enrolled in school. Federal Work Study Program (FWS) A Federal student aid program that provides part-time employment to help pay your educational expenses while you are enrolled in school. federal work study (FWS) program A Federal student aid program that provides part-time employment to help pay your educational expenses while you are enrolled in school. FWS A Federal student aid program that provides part-time employment to help pay your educational expenses while you are enrolled in school. Federal Work Study Program A Federal student aid program that provides part-time employment to help pay your educational expenses while you are enrolled in school. Federal Work Study A Federal student aid program that provides part-time employment to help pay your education expenses while you are enrolled in school. Federal work study A Federal student aid program that provides part-time employment to help pay your education expenses while you are enrolled in school. FICO Score A number that indicates a person’s creditworthiness or likelihood of repaying a debt. The score is based on several factors such as the amount of money currently owed, payment history, and length of credit history. FICO score A number that indicates a person’s creditworthiness or likelihood of repaying a debt. The score is based on several factors such as the amount of money currently owed, payment history, and length of credit history. Financial Aid Award Letter An offer from a school that states the type and amount of financial aid the school is willing to provide if you accept admission, register, and begin attendance at that school. financial aid award letter An offer from a school that states the type and amount of financial aid the school is willing to provide if you accept admission, register, and begin attendance at that school. Financial Aid Package The total amount of financial aid (Federal and nonfederal) you are offered by your school. The school’s financial aid staff combines various forms of aid into a “package” to help meet your education costs. financial aid package The total amount of financial aid (Federal and nonfederal) you are offered by your school. The school’s financial aid staff combines various forms of aid into a “package” to help meet your education costs. Financial Institution An organization that deals with financial transactions such as deposits, loans, and investments. Common financial institutions are banks and credit unions. financial institution An organization that deals with financial transactions such as deposits, loans, and investments. Common financial institutions are banks and credit unions. Financial Need The difference between the Cost of Attendance (COA) at a school and your Expected Family Contribution (EFC). financial need The difference between the Cost of Attendance (COA) at a school and your Expected Family Contribution (EFC). First-Time Borrower Someone who has no outstanding balance on a Direct Loan or Federal Family Education Loan (FFEL) Program loan when he or she receives a Direct Loan or FFEL Program loan on or after a specific date. first-time borrower Someone who has no outstanding balance on a Direct Loan or Federal Family Education Loan (FFEL) Program loan when he or she receives a Direct Loan or FFEL Program loan on or after a specific date. Fixed Interest Rate A fixed interest rate will not change throughout the life of the loan and is based on the terms of the promissory note. fixed interest rate A fixed interest rate will not change throughout the life of the loan and is based on the terms of the promissory note. Forbearance A period of time during which the monthly payment of a Federal student loan is temporarily suspended or reduced. A loan servicer may grant a forbearance if you are willing but unable to make loan payments due to certain types of financial hardship. During the forbearance period, principal payments are postponed but the interest continues to accrue. Unpaid interest that has accrued during the forbearance period may be capitalized and added to the principal balance of the loan, increasing the total amount you owe. forbearance A period of time during which the monthly payment of a Federal student loan is temporarily suspended or reduced. A loan servicer may grant a forbearance if you are willing but unable to make loan payments due to certain types of financial hardship. During the forbearance period, principal payments are postponed but the interest continues to accrue. Unpaid interest that has accrued during the forbearance period may be capitalized and added to the principal balance of the loan, increasing the total amount you owe. forgiveness The release of your obligation to repay all or a designated portion of principal and interest on a Federal student loan. Forgiven The release of your obligation to repay all or a designated portion of principal and interest on a Federal student loan. forgiven The release of your obligation to repay all or a designated portion of principal and interest on a Federal student loan. Forgiveness The release of your obligation to repay all or a designated portion of principal and interest on a Federal student loan. Free Application for Federal Student Aid The free form that you or you and your parents must complete to apply for Federal student aid. free application for federal student aid The free form that you or you and your parents must complete to apply for Federal student aid. FAFSA The free form that you or you and your parents must complete to apply for Federal student aid. FSA ID Stands for Federal Student Aid ID. It is a username and password combination that serves as a student’s or parent’s identifier to allow access to personal information in various U.S. Department of Education systems and acts as a digital signature on some online forms. Federal Student Aid ID (FSA ID) Stands for Federal Student Aid ID. It is a username and password combination that serves as a student’s or parent’s identifier to allow access to personal information in various U.S. Department of Education systems and acts as a digital signature on some online forms. full-time To be a full-time undergraduate student, you must carry an academic workload of at least 12 semester, trimester, or quarter hours per academic term in a program using credit hours, or 24 clock hours per week for a program using clock hours. If you are a graduate or professional student, your school will define the workload required for each graduate program. full time To be a full-time undergraduate student, you must carry an academic workload of at least 12 semester, trimester, or quarter hours per academic term in a program using credit hours, or 24 clock hours per week for a program using clock hours. If you are a graduate or professional student, your school will define the workload required for each graduate program. Garnished A process that allows the government to have your employer withhold a portion of your earnings to collect unpaid Federal student loan debt. garnished A process that allows the government to have your employer withhold a portion of your earnings to collect unpaid Federal student loan debt. General Educational Development A certificate that a student receives if he or she passes a specific, approved high school equivalency test. Students with a GED certificate are eligible to receive Federal student aid. general educational development (GED) certificate A certificate that a student receives if he or she passes a specific, approved high school equivalency test. Students with a GED certificate are eligible to receive Federal student aid. General Educational Development Certificate A certificate that a student receives if he or she passes a specific, approved high school equivalency test. Students with a GED certificate are eligible to receive Federal student aid. GED A certificate that a student receives if he or she passes a specific, approved high school equivalency test. Students with a GED certificate are eligible to receive Federal student aid. General Educational Development certificate A certificate that a student receives if he or she passes a specific, approved high school equivalency test. Students with a GED certificate are eligible to receive Federal student aid. Gift Aid Financial aid, such as grants and scholarships, that does not have to be repaid. gift aid Financial aid, such as grants and scholarships, that does not have to be repaid. Grace Period A specific period of time between the date you graduate, leave school, or drop below half-time enrollment and the date loan repayment begins in which you are not required to make payments on certain Federal student loans. Interest will accrue on certain types of student loans during the grace period, and if the interest is unpaid, it will be capitalized and added to the principal balance of the loan when the repayment period begins. grace period A specific period of time between the date you graduate, leave school, or drop below half-time enrollment and the date loan repayment begins in which you are not required to make payments on certain Federal student loans. Interest will accrue on certain types of student loans during the grace period, and if the interest is unpaid, it will be capitalized and added to the principal balance of the loan when the repayment period begins. Grace Periods A specific period of time between the date you graduate, leave school, or drop below half-time enrollment and the date loan repayment begins in which you are not required to make payments on certain Federal student loans. Interest will accrue on certain types of student loans during the grace period, and if the interest is unpaid, it will be capitalized and added to the principal balance of the loan when the repayment period begins. grace periods A specific period of time between the date you graduate, leave school, or drop below half-time enrollment and the date loan repayment begins in which you are not required to make payments on certain Federal student loans. Interest will accrue on certain types of student loans during the grace period, and if the interest is unpaid, it will be capitalized and added to the principal balance of the loan when the repayment period begins. Graduate Students A student who has obtained a bachelor’s degree and is seeking an advanced degree. graduate students A student who has obtained a bachelor’s degree and is seeking an advanced degree. Graduate A student who has obtained a bachelor’s degree and is seeking an advanced degree. graduate A student who has obtained a bachelor’s degree and is seeking an advanced degree. Graduate Student A student who has obtained a bachelor’s degree and is seeking an advanced degree. graduate student A student who has obtained a bachelor’s degree and is seeking an advanced degree. Grant Financial aid, usually based on financial need, that does not need to be repaid. grant Financial aid, usually based on financial need, that does not need to be repaid. Grants Financial aid, usually based on financial need, that does not need to be repaid. grants Financial aid, usually based on financial need, that does not need to be repaid. Gross Income Income from all sources prior to deductions for taxes and other elections such as 401k contributions. gross income Income from all sources prior to deductions for taxes and other elections such as 401k contributions. Half-Time Status The number of classes as determined by the school you attend that includes at least half of the academic workload required by Federal regulations for full-time enrollment in your program of study. You must attend school at least half time to be eligible to receive a Federal student loan. half-time status The number of classes as determined by the school you attend that includes at least half of the academic workload required by Federal regulations for full-time enrollment in your program of study. You must attend school at least half time to be eligible to receive a Federal student loan. half time The number of classes as determined by the school you attend that includes at least half of the academic workload required by Federal regulations for full-time enrollment in your program of study. You must attend school at least half time to be eligible to receive a Federal student loan. Half Time The number of classes as determined by the school you attend that includes at least half of the academic workload required by Federal regulations for full-time enrollment in your program of study. You must attend school at least half time to be eligible to receive a Federal student loan. half-time The number of classes as determined by the school you attend that includes at least half of the academic workload required by Federal regulations for full-time enrollment in your program of study. You must attend school at least half time to be eligible to receive a Federal student loan. Half-time The number of classes as determined by the school you attend that includes at least half of the academic workload required by Federal regulations for full-time enrollment in your program of study. You must attend school at least half time to be eligible to receive a Federal student loan. Home School A school in which children are educated at home either by parents, legal guardians, or tutors, rather than in a traditional public or private school. home school A school in which children are educated at home either by parents, legal guardians, or tutors, rather than in a traditional public or private school. Income-Based Repayment Plan Monthly payments are based on your income and family size. Any debt remaining after 25 years of qualifying payments is forgiven. (Federal Family Education Loan (FFEL) Stafford Loans and Direct Loans.) income-based repayment plan Monthly payments are based on your income and family size. Any debt remaining after 25 years of qualifying payments is forgiven. (Federal Family Education Loan (FFEL) Stafford Loans and Direct Loans.) independent You are an independent student if you meet at least one of the following criteria: 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, someone with legal dependents other than a spouse, an emancipated minor, or someone who is homeless or at risk of becoming homeless. Independent students do not have to put their parent’s information on the FAFSA. independent student You are an independent student if you meet at least one of the following criteria: 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, someone with legal dependents other than a spouse, an emancipated minor, or someone who is homeless or at risk of becoming homeless. Independent students do not have to put their parent’s information on the FAFSA. Interest A loan expense calculated as a percentage of the unpaid principal loan amount that is charged for the use of borrowed money. interest A loan expense calculated as a percentage of the unpaid principal loan amount that is charged for the use of borrowed money. Investing Purchasing an asset such as stocks, bonds, or property with the intent that it will increase in value. investing Purchasing an asset such as stocks, bonds, or property with the intent that it will increase in value. Iraq and Afghanistan Service Grant A Federal grant awarded if you are not eligible for a Federal Pell Grant on the basis of your Expected Family Contribution but you meet the remaining Federal Pell Grant eligibility requirements, and your parent or guardian was a member of the U.S. armed forces and died as a result of military service performed in Iraq or Afghanistan after the events of 9/11, and you were under 24 years old or enrolled in college at least part-time at the time of your parent’s or guardian’s death. iraq and afghanistan service grant (IASG) A Federal grant awarded if you are not eligible for a Federal Pell Grant on the basis of your Expected Family Contribution but you meet the remaining Federal Pell Grant eligibility requirements, and your parent or guardian was a member of the U.S. armed forces and died as a result of military service performed in Iraq or Afghanistan after the events of 9/11, and you were under 24 years old or enrolled in college at least part-time at the time of your parent’s or guardian’s death. Iraq and Afghanistan Service Grant A Federal grant awarded if you are not eligible for a Federal Pell Grant on the basis of your Expected Family Contribution but you meet the remaining Federal Pell Grant eligibility requirements, and your parent or guardian was a member of the U.S. armed forces and died as a result of military service performed in Iraq or Afghanistan after the events of 9/11, and you were under 24 years old or enrolled in college at least part-time at the time of your parent’s or guardian’s death. IASG A Federal grant awarded if you are not eligible for a Federal Pell Grant on the basis of your Expected Family Contribution but you meet the remaining Federal Pell Grant eligibility requirements, and your parent or guardian was a member of the U.S. armed forces and died as a result of military service performed in Iraq or Afghanistan after the events of 9/11, and you were under 24 years old or enrolled in college at least part-time at the time of your parent’s or guardian’s death. iraq and afghanistan service grant A Federal grant awarded if you are not eligible for a Federal Pell Grant on the basis of your Expected Family Contribution but you meet the remaining Federal Pell Grant eligibility requirements, and your parent or guardian was a member of the U.S. armed forces and died as a result of military service performed in Iraq or Afghanistan after the events of 9/11, and you were under 24 years old or enrolled in college at least part-time at the time of your parent’s or guardian’s death. IRS Data Retrieval Tool Allows certain FAFSA on the Web applicants to request and retrieve income and tax data from the IRS. The retrieved data can be transferred to the FAFSA on the Web. IRS data retrieval tool Allows certain FAFSA on the Web applicants to request and retrieve income and tax data from the IRS. The retrieved data can be transferred to the FAFSA on the Web. IRS DRT Allows certain FAFSA on the Web applicants to request and retrieve income and tax data from the IRS. The retrieved data can be transferred to the FAFSA on the Web. IRS W-2 The Federal form that lists an employee’s wages and taxes withheld. The IRS requires an employer to issue a W-2 for each employee by January 31st of each year. The Federal form that lists an employee’s wages and taxes withheld. The IRS requires an employer to issue a W-2 for each employee by January 31st of each year. lender An organization that lends money to a borrower. A lender can be your school, a bank, a credit union, or another lending institution. The U.S. Department of Education is also a lender. An organization that lends money to a borrower. A lender can be your school, a bank, a credit union, or another lending institution. The U.S. Department of Education is also a lender. Less Than Full Time Carrying less than the requirements for a full-time student. To be a full time undergraduate student, you must carry an academic workload of at least 12 semester, trimester, or quarter hours per academic term in a program using credit hours, or 24 clock hours per week for a program using clock hours. If you are a graduate or professional student, your school will define the workload required for each graduate program. less than full time Carrying less than the requirements for a full-time student. To be a full time undergraduate student, you must carry an academic workload of at least 12 semester, trimester, or quarter hours per academic term in a program using credit hours, or 24 clock hours per week for a program using clock hours. If you are a graduate or professional student, your school will define the workload required for each graduate program. Less Than Half-Time Enrollment Carrying less than half of the academic workload of a full-time student in your program of study. less than half-time enrollment Carrying less than half of the academic workload of a full-time student in your program of study. Less than half-time enrollment Carrying less than half of the academic workload of a full-time student in your program of study. Loan Periods The period for which a Federal student loan is intended. The loan period must coincide with a period established by your school for which institutional charges are generally assessed such as a semester, trimester, quarter, length of your program of study or academic year. The loan period is also referred to as the period of enrollment. loan periods The period for which a Federal student loan is intended. The loan period must coincide with a period established by your school for which institutional charges are generally assessed such as a semester, trimester, quarter, length of your program of study or academic year. The loan period is also referred to as the period of enrollment. Loan Period The period for which a Federal student loan is intended. The loan period must coincide with a period established by your school for which institutional charges are generally assessed such as a semester, trimester, quarter, length of your program of study or academic year. The loan period is also referred to as the period of enrollment. loan period The period for which a Federal student loan is intended. The loan period must coincide with a period established by your school for which institutional charges are generally assessed such as a semester, trimester, quarter, length of your program of study or academic year. The loan period is also referred to as the period of enrollment. Long Term Goals that will take an extended amount of time to accomplish. long-term Goals that will take an extended amount of time to accomplish. Master Promissory Note A binding legal document that you must sign for a Federal student loan. The MPN can be used to make one or more student loans for up to 10 academic years. The MPN lists the terms and conditions under which you agree to repay the student loan and explains your rights and responsibilities as a borrower. master promissory note A binding legal document that you must sign for a Federal student loan. The MPN can be used to make one or more student loans for up to 10 academic years. The MPN lists the terms and conditions under which you agree to repay the student loan and explains your rights and responsibilities as a borrower. MPN A binding legal document that you must sign for a Federal student loan. The MPN can be used to make one or more student loans for up to 10 academic years. The MPN lists the terms and conditions under which you agree to repay the student loan and explains your rights and responsibilities as a borrower. Maximum Eligibility Period The period of time, measured in academic years, equal to 150% of the published length of your current educational program. maximum eligibility period The period of time, measured in academic years, equal to 150% of the published length of your current educational program. MEP The period of time, measured in academic years, equal to 150% of the published length of your current educational program. Maximum Eligibility Period (MEP) The period of time, measured in academic years, equal to 150% of the published length of your current educational program. Merit-Based Aid based on your skill or ability. For example, a merit-based scholarship might be awarded based on your high school grades. merit-based Aid based on your skill or ability. For example, a merit-based scholarship might be awarded based on your high school grades. money market account An interest-bearing bank account that typically earns higher interest rates than other bank accounts, often requiring a higher minimum balance and restricting the number of monthly deposits and withdrawals. Money Market Account An interest-bearing bank account that typically earns higher interest rates than other bank accounts, often requiring a higher minimum balance and restricting the number of monthly deposits and withdrawals. money market account An interest-bearing bank account that typically earns higher interest rates than other bank accounts, often requiring a higher minimum balance and restricting the number of monthly deposits and withdrawals. National Credit Bureaus Agencies that track and report your credit, including your history of paying bills, and calculate your ability to repay future loans. national credit bureaus Agencies that track and report your credit, including your history of paying bills, and calculate your ability to repay future loans. Net Price Calculator A tool that allows you to estimate the net price of attending a particular school. Net price is the amount you pay to attend an institution in a single academic year after subtracting scholarships and grants that you may receive. net price calculator A tool that allows you to estimate the net price of attending a particular school. Net price is the amount you pay to attend an institution in a single academic year after subtracting scholarships and grants that you may receive. NSLDS The National Student Loan Data System is a centralized database that stores information on all Federal student loans and grants. Your school enrollment information is also listed in the National Student Loan Data System. NSLDS The National Student Loan Data System is a centralized database that stores information on all Federal student loans and grants. Your school enrollment information is also listed in the National Student Loan Data System. national student loan data system The National Student Loan Data System is a centralized database that stores information on all Federal student loans and grants. Your school enrollment information is also listed in the National Student Loan Data System. (NSLDS) The National Student Loan Data System is a centralized database that stores information on all Federal student loans and grants. Your school enrollment information is also listed in the National Student Loan Data System. Offline Transaction A debit card payment method that sends funds from a checking account to a retailer across a digital credit card network. The card user signs a receipt for the purchase. offline transaction A debit card payment method that sends funds from a checking account to a retailer across a digital credit card network. The card user signs a receipt for the purchase. online transaction A password-protected method of using a debit card (usually a personal identification number or PIN) that transfers money from a checking account to a retailer by electronic funds transfer. Online Transaction A password-protected method of using a debit card (usually a personal identification number or PIN) that transfers money from a checking account to a retailer by electronic funds transfer. Out-of-Network An automatic teller machine (ATM) that is not within the banking network of the debit card being used. out-of-network An automatic teller machine (ATM) that is not within the banking network of the debit card being used. Overawards The amount by which your aid package from the school exceeds your need. overawards The amount by which your aid package from the school exceeds your need. Overpayments The disbursement of more Federal student aid funds to you than you are eligible to receive. overpayments The disbursement of more Federal student aid funds to you than you are eligible to receive. overpayment The disbursement of more Federal student aid funds to you than you are eligible to receive. Overpayment The disbursement of more Federal student aid funds to you than you are eligible to receive. Pay As You Earn Repayment Plan Monthly payments are based on your income, family size, and total Federal student loan debt. Any debt remaining after 20 years of qualifying payments is forgiven. (Direct Loans only.) PAYE Monthly payments are based on your income, family size, and total Federal student loan debt. Any debt remaining after 20 years of qualifying payments is forgiven. (Direct Loans only.) PLUS Loan A Federal student loan available to graduate and professional students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest on this loan regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. PLUS loan A Federal student loan available to graduate and professional students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest on this loan regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Prepayment The amount you pay in excess of the monthly payment amount due on a Federal student loan. prepayments The amount you pay in excess of the monthly payment amount due on a Federal student loan. prepayment The amount you pay in excess of the monthly payment amount due on a Federal student loan. Prepayments The amount you pay in excess of the monthly payment amount due on a Federal student loan. principal The total sum of money borrowed for a Federal student loan plus any interest that has been capitalized. principal The total sum of money borrowed for a Federal student loan plus any interest that has been capitalized. Private education loan A nonfederal loan made by a lender such as a bank, credit union, state agency, or school. private educational loan A nonfederal loan made by a lender such as a bank, credit union, state agency, or school. Professional Degrees An academic degree granted to individuals who have completed both the requirements for a bachelor’s degree and for beginning practice in a profession such as law school or medical school. professional degrees An academic degree granted to individuals who have completed both the requirements for a bachelor’s degree and for beginning practice in a profession such as law school or medical school. rehabilitation The process of bringing a Federal student loan out of default and removing the default notation from your credit report. rehabilitation The process of bringing a Federal student loan out of default and removing the default notation from your credit report. Repayment Options A repayment schedule agreed upon by you and your loan servicer regarding repayment of a Federal student loan. repayment options A repayment schedule agreed upon by you and your loan servicer regarding repayment of a Federal student loan. repayment plans A schedule agreed upon by you and your loan servicer regarding repayment of a Federal student loan. repayment plan A schedule agreed upon by you and your loan servicer regarding repayment of a Federal student loan. Repayment plans A schedule agreed upon by you and your loan servicer regarding repayment of a Federal student loan. repayment plans A schedule agreed upon by you and your loan servicer regarding repayment of a Federal student loan. Return of Funds The transfer or repayment of Federal student aid funds required when a school must correct an overaward or an overpayment, or the return of funds that may be required if you withdraw or otherwise cease attendance during a period of enrollment. return of funds The transfer or repayment of Federal student aid funds required when a school must correct an overaward or an overpayment, or the return of funds that may be required if you withdraw or otherwise cease attendance during a period of enrollment. SAR A summary of the information you submitted on the Free Application for Federal Student Aid (FAFSA). This will contain your EFC, which is the number used to determine your eligibility for Federal student aid. A summary of the information you submitted on the Free Application for Federal Student Aid (FAFSA). This will contain your EFC, which is the number used to determine your eligibility for Federal student aid. Satisfactory Academic Progress A school’s standards for measuring your progress toward a degree or certificate. satisfactory academic progress A school’s standards for measuring your progress toward a degree or certificate. SAP A school’s standards for measuring your progress toward a degree or certificate. savings A bank account that earns interest. Savings A bank account that earns interest. scheduled award amount The maximum grant amount you are eligible to receive for the award year if you are enrolled full time for the full school year. scheduled award amount The maximum grant amount you are eligible to receive for the award year if you are enrolled full time for the full school year. Scholarship A financial aid award that does not have to be repaid. Scholarships are based on academic or other achievements and are used to help pay for education expenses. scholarships A financial aid award that does not have to be repaid. Scholarships are based on academic or other achievements and are used to help pay for education expenses. Scholarships A financial aid award that does not have to be repaid. Scholarships are based on academic or other achievements and are used to help pay for education expenses. scholarship A financial aid award that does not have to be repaid. Scholarships are based on academic or other achievements and are used to help pay for education expenses. Selective Service Registration with the Federal Selective Service agency that administers the military draft. If you are a male between the ages of 18 and 25, registration is required to receive Federal financial aid. selective service Registration with the Federal Selective Service agency that administers the military draft. If you are a male between the ages of 18 and 25, registration is required to receive Federal financial aid. Self-Help Aid Money awarded to a student that must be paid back or must be earned in some way. Types of self-help aid include student loans and work study. self-help aid Money awarded to a student that must be paid back or must be earned in some way. Types of self-help aid include student loans and work study. state aid Financial aid received from your state of legal residence. state aid Financial aid received from your state of legal residence. Student Aid Report A summary of the information you submitted on the Free Application for Federal Student Aid (FAFSA). The SAR will contain your EFC, which is the number used to determine your eligibility for Federal student aid. student aid report A summary of the information you submitted on the Free Application for Federal Student Aid (FAFSA). The SAR will contain your EFC, which is the number used to determine your eligibility for Federal student aid. Student Aid Report A summary of the information you submitted on the Free Application for Federal Student Aid (FAFSA). The SAR will contain your EFC, which is the number used to determine your eligibility for Federal student aid. subsidized A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. subsidized loan A Federal student loan based on financial need for which the Federal government pays the interest that accrues while you are in an in-school, grace, or deferment status. Teacher Education Assistance for College and Higher Education A Federal grant that provides up to $4,000 per year to students who agree to teach for four years in a high need field at an elementary school, secondary school, or educational service agency that serves students from low-income families and meet other requirements. If the service obligation is not met, the grant is converted to a Direct Unsubsidized Loan. Teacher Education Assistance for College and Higher Education Grant A Federal grant that provides up to $4,000 per year to students who agree to teach for four years in a high need field at an elementary school, secondary school, or educational service agency that serves students from low-income families and meet other requirements. If the service obligation is not met, the grant is converted to a Direct Unsubsidized Loan. TEACH Grant A Federal grant that provides up to $4,000 per year to students who agree to teach for four years in a high need field at an elementary school, secondary school, or educational service agency that serves students from low-income families and meet other requirements. If the service obligation is not met, the grant is converted to a Direct Unsubsidized Loan. Transfer Student Monitoring Process A process through which your school will send your information to NSLDS so that the school can be notified of relevant changes to your financial aid history and eligibility. transfer student monitoring process A process through which your school will send your information to NSLDS so that the school can be notified of relevant changes to your financial aid history and eligibility. Transfer You are a transfer student if you leave or graduate from one school and enroll at another school. transfer You are a transfer student if you leave or graduate from one school and enroll at another school. Transferring You are a transfer student if you leave or graduate from one school and enroll at another school. transferring You are a transfer student if you leave or graduate from one school and enroll at another school. U.S. Department of Education ED The agency of the Federal government that is responsible for funding and administering Federal financial aid programs. U.S. Department of Education The agency of the Federal government that is responsible for funding and administering Federal financial aid programs. U.S. department of education The agency of the Federal government that is responsible for funding and administering Federal financial aid programs. U.S. Department of ED The agency of the Federal government that is responsible for funding and administering Federal financial aid programs. U.S. Department of Education (ED) The agency of the Federal government that is responsible for funding and administering Federal financial aid programs. undergraduate A degree-seeking student who has not earned a first bachelor’s degree. undergraduate student A degree-seeking student who has not earned a first bachelor’s degree. undergraduate students A degree-seeking student who has not earned a first bachelor’s degree. Undergraduate Students A degree-seeking student who has not earned a first bachelor’s degree. Unsubsidized Loan A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. unsubsidized loan A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Unsubsidized Loans A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. unsubsidized loans A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Verification The process your school uses to confirm that the information reported on your FAFSA is accurate. Your school has the authority to contact you for documentation that supports income and other information you reported. verification The process your school uses to confirm that the information reported on your FAFSA is accurate. Your school has the authority to contact you for documentation that supports income and other information you reported. Wage garnishment Process by which a guarantor, for FFEL Program, or the U.S. Department of Education may take a portion of the wages of a Federal student aid borrower who is not making required payments. wage garnishment Process by which a guarantor, for FFEL Program, or the U.S. Department of Education may take a portion of the wages of a Federal student aid borrower who is not making required payments. William D. Ford Federal Direct Loan The Federal program that provides loans to eligible student and parent borrowers under Title IV of the Higher Education Act. Funds are provided by the Federal government to eligible borrowers through participating schools. William D. Ford Federal Direct Loan Program The Federal program that provides loans to eligible student and parent borrowers under Title IV of the Higher Education Act. Funds are provided by the Federal government to eligible borrowers through participating schools. Withheld A debt collection tool using Federal income tax refund offset that allows the government to seize income tax refunds from individuals to help repay their defaulted Federal student loan debt. withheld A debt collection tool using Federal income tax refund offset that allows the government to seize income tax refunds from individuals to help repay their defaulted Federal student loan debt. Witholding A debt collection tool using Federal income tax refund offset that allows the government to seize income tax refunds from individuals to help repay their defaulted Federal student loan debt. witholding A debt collection tool using Federal income tax refund offset that allows the government to seize income tax refunds from individuals to help repay their defaulted Federal student loan debt. Work Study A Federal student aid program that provides part-time employment to help pay your education expenses while you are enrolled in school. work study A Federal student aid program that provides part-time employment to help pay your education expenses while you are enrolled in school. Write-off A write off of a loan occurs when an official determines, after all appropriate collection tools have been used, that no further collection activity is warranted, and active collection of the account ceases. written off A write off of a loan occurs when an official determines, after all appropriate collection tools have been used, that no further collection activity is warranted, and active collection of the account ceases. grace A specific period of time between the date you graduate, leave school, or drop below half-time enrollment and the date loan repayment begins in which you are not required to make payments on certain Federal student loans. Interest will accrue on certain types of student loans during the grace period, and if the interest is unpaid, it will be capitalized and added to the principal balance of the loan when the repayment period begins. A specific period of time between the date you graduate, leave school, or drop below half-time enrollment and the date loan repayment begins in which you are not required to make payments on certain Federal student loans. Interest will accrue on certain types of student loans during the grace period, and if the interest is unpaid, it will be capitalized and added to the principal balance of the loan when the repayment period begins. half time The number of classes as determined by the school you attend that includes at least half of the academic workload required by Federal regulations for full-time enrollment in your program of study. You must attend school at least half time to be eligible to receive a Federal student loan. The number of classes as determined by the school you attend that includes at least half of the academic workload required by Federal regulations for full-time enrollment in your program of study. You must attend school at least half time to be eligible to receive a Federal student loan. graduate A student who has obtained a bachelor's degree and is seeking an advanced degree. A student who has obtained a bachelor's degree and is seeking an advanced degree. Bachelor's Degrees An undergraduate academic degree awarded for a course of study that takes a minimum of four full-time academic years to complete. bachelor's degrees An undergraduate academic degree awarded for a course of study that takes a minimum of four full-time academic years to complete. FAFSA The free form that you, or you and your parents, must complete to apply for Federal student aid. The free form that you, or you and your parents, must complete to apply for Federal student aid. grants Financial aid, usually based on financial need, that does not need to be repaid. Financial aid, usually based on financial need, that does not need to be repaid. undergraduate students A degree-seeking student who has not earned a first bachelor's degree. A degree-seeking student who has not earned a first bachelor's degree. PLUS loans A Federal student loan available to graduate and professional students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest on this loan regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. A Federal student loan available to graduate and professional students and parents of dependent undergraduate students. The borrower is fully responsible for paying the interest on this loan regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. unsubsidized A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. A Federal student loan for which you are fully responsible for paying the interest regardless of the student loan status. Interest accrues from the date of the loan disbursement and continues throughout the life of the loan. Family Federal Education Loan Stafford Under this program, private lenders provided loans to students that were guaranteed by the Federal government. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new Federal student loans are made directly from the U.S. Department of Education (ED) under the Direct Loan Program. Family Federal Education Loan Under this program, private lenders provided loans to students that were guaranteed by the Federal government. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new Federal student loans are made directly from the U.S. Department of Education (ED) under the Direct Loan Program. Family Federal Education Loans Under this program, private lenders provided loans to students that were guaranteed by the Federal government. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new Federal student loans are made directly from the U.S. Department of Education (ED) under the Direct Loan Program. forbearances A period of time during which the monthly payment of a Federal student loan is temporarily suspended or reduced. A loan servicer may grant a forbearance if you are willing but unable to make loan payments due to certain types of financial hardship. During the forbearance period, principal payments are postponed but the interest continues to accrue. Unpaid interest that has accrued during the forbearance period may be capitalized and added to the principal balance of the loan, increasing the total amount you owe. A period of time during which the monthly payment of a Federal student loan is temporarily suspended or reduced. A loan servicer may grant a forbearance if you are willing but unable to make loan payments due to certain types of financial hardship. During the forbearance period, principal payments are postponed but the interest continues to accrue. Unpaid interest that has accrued during the forbearance period may be capitalized and added to the principal balance of the loan, increasing the total amount you owe. withholding A debt collection tool using Federal income tax refund offset that allows the government to seize income tax refunds from individuals to help repay their defaulted Federal student loan debt. A debt collection tool using Federal income tax refund offset that allows the government to seize income tax refunds from individuals to help repay their defaulted Federal student loan debt. Master's Degrees A graduate academic degree granted to individuals who have completed a bachelor’s degree and have completed coursework that demonstrates mastery of a specific field of study. master's degrees A graduate academic degree granted to individuals who have completed a bachelor’s degree and have completed coursework that demonstrates mastery of a specific field of study. short-term Goals that will take a brief amount of time to accomplish. Goals that will take a brief amount of time to accomplish.

Information for parents

Saving for college

With the cost of a college education rising yearly, it’s very important to start saving for your child’s education as early as possible. Having a savings account will help when it’s time to start paying for college expenses. It’s never too early to start saving or to encourage your child to save for his or her education.

There are tax free savings plans available for college such as the 529 College Savings Plan and the Coverdell Education Savings Account. For information on these savings accounts, please visit the following websites:

To see how beneficial a savings account can be and how quickly even saving a small amount can add up, please click on the savings growth calculator.

Tax benefits

There are two tax credits that may help offset the cost of your child’s college expenses by reducing the amount of income tax you pay:

The American Opportunity Credit allows you to claim up to $2,500 per student per year for the first four years of college.
The Lifetime Learning Credit allows you to claim up to $2,000 per student per year for college tuition and fees, books, supplies, and equipment required to be purchased from the school.

Another tax benefit for college is withdrawing money from an Individual Retirement Account (IRA) to pay for qualifying higher education expenses. You will owe Federal income tax on the amount withdrawn, but you will not be required to pay an early withdrawal penalty.

If you take out a student loan for your child (Federal or nonfederal), you may be able to take a tax deduction for interest paid. The maximum deduction is $2,500 a year.

Always check with your tax advisor to verify the tax benefits available and how they will affect your financial circumstances.

Federal Direct PLUS Loan for parents

Overview

A Direct PLUS Loan is a Federal student loan that is made to the parents of a
dependent undergraduate student to help pay for his or her college expenses. It can also be made to graduate or professional degree students. This section concerns Direct PLUS Loans made to parents. The U.S. Department of Education (ED) makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program.

Characteristics of a Direct PLUS Loan include:

The U.S. Department of Education (ED) is the lender.
The borrower (parent) must not have an adverse credit history.
The maximum loan amount is the student’s Cost of Attendance (COA) as determined by the school minus any other financial aid received.
A Direct PLUS Loan is made to the parent and cannot be transferred to the child. The parent is responsible for repaying the loan.

Eligibility

To receive a Direct PLUS Loan, you must:

Be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student who is enrolled at least half time at a participating school;
Meet the following basic eligibility requirements:
- Be a U.S. citizen or eligible noncitizen
- Have a valid Social Security number
- Not have an adverse credit history
- Not be in default on a Federal student loan or owe a Federal grant overpayment or Federal loan overpayment; and
Your child must meet the following basic eligibility requirements:
- Demonstrate financial need (for most programs)
- Be a U.S. citizen or eligible noncitizen
- Have a valid Social Security number
- Be registered with the Selective Service, if he is a male
- Have a high school diploma or a recognized equivalent of a high school diploma such as a General Educational Development Certificate (GED) or complete a high school education in a home school setting approved under state law
- Be enrolled as a regular student working toward a degree or certificate in an eligible program at an eligible institution
- Be enrolled at least half time to be eligible for Direct Loan program funds
- Make Satisfactory Academic Progress (SAP), as determined by the college; and
- Not be in default on a Federal student loan or owe a Federal grant overpayment or Federal loan overpayment

Apply using the FAFSA

To apply for a Direct PLUS Loan, your child must complete the Free Application for Federal Student Aid (FAFSA). Your income and asset information will be required for the FAFSA. The information listed on the application will help determine the amount of grants, work study, Federal student loans, and some types of state aid that your child may be eligible to receive. Once that amount is determined, the maximum amount of your PLUS loan can be set. The school’s financial aid office can provide instructions about their process for requesting a Direct PLUS Loan.

Adverse credit

One of the eligibility requirements to receive a Direct PLUS Loan is that you must not have an adverse credit history. A credit check is performed during the application process.

You are considered to have an adverse credit history if:

You have one or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or charged off (written off) during the two years preceding the date of the credit report; or
During the five years preceding the date of the credit report, you have been subject to a

Default determination,
Discharge of debts in bankruptcy,
Foreclosure,
Repossession,
Tax lien,
Wage garnishment, or
Write-off of a Federal student aid debt.

If you have an adverse credit history, there are two ways that you may still be able to qualify for a Direct PLUS Loan:

You can receive a PLUS Loan if you obtain an endorser who does not have an adverse credit history. A credit check will be performed on the endorser. An endorser is someone who agrees to repay the PLUS Loan if you do not repay it. The endorser cannot be the child on whose behalf you are borrowing
You have the option of trying to qualify for a PLUS Loan by documenting to the satisfaction of the U.S. Department of Education (ED) that there are extenuating circumstances related to your adverse credit history.

If you apply for a Direct PLUS Loan and are notified that you have an adverse credit history, you will be given detailed information on the options for qualifying by obtaining an endorser or submitting documentation of extenuating circumstances. If you then qualify for a Direct PLUS Loan, you will be required to complete PLUS loan counseling before you can receive the loan.

If you do not qualify for a Direct PLUS Loan, your child may be eligible to receive additional Direct Unsubsidized Loan funds to help pay for his or her education. Contact the financial aid office at your child’s school for more information.

Master Promissory Note (MPN)

After you have qualified for a Direct PLUS Loan, you will be required to sign a Master Promissory Note (MPN) in which you are agreeing to the terms of the loan. Contact the financial aid office at your child’s school for details regarding this process.

Loan amount, interest, and fees

The maximum Direct PLUS Loan amount you can borrow is the Cost of Attendance (COA) as determined by the school minus any other financial aid received. A PLUS Loan has a fixed interest rate for the life of the loan. There is also a loan fee on all PLUS Loans. The loan fee is a percentage of the loan amount received and is proportionately deducted from each loan disbursement.

The chart below lists the current interest rates and loan fees.

Direct PLUS Loan Current Interest Rate and Loan Fees

Current Interest Rate
Loan first disbursed on or after July 1, 2019 and before July 1, 2020	7.08%
Current Loan Fees
First disbursement date on or after October 1, 2017, and before October 1, 2018	4.264%
First disbursement date on or after October 1, 2018, and before October 1, 2019	4.248%

Receive loan

When the Direct PLUS Loan is received by the school, the school will first apply the funds to your child’s school account to pay for tuition, fees, room and board, and other school charges. Generally, the loan will cover a full academic year and the school will disburse the funds in at least two payments called disbursements within that academic year. If the loan disbursement amount exceeds your child’s school charges, the school will pay you the remaining balance of the disbursement. In some cases, with your permission, the school may send some of the PLUS Loan money directly to your child.

Before the funds are disbursed, you may cancel all or part of your loan by notifying your child’s school. After your loan is disbursed, you may cancel all or part of the loan within certain time frames. Your Master Promissory Note (MPN) and additional information you receive from your child’s school will explain the procedures and time frames for canceling your loan.

Repayment

Repayment of your Direct PLUS Loan begins once the loan is fully disbursed. You will be contacted by your loan servicer who will provide regular updates on the status of your PLUS Loan as well as information on how and when to repay your loan.

In-school deferment

You may qualify for an in-school deferment under the following circumstances:

While you or your child are enrolled at least half time, or
For six months after your child ceases to be enrolled at least half time.

During the deferment, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized when the deferment period ends. To apply for a deferment, contact your loan servicer. For more information, please see the loan servicer information listed below.

After you submit a deferment application and any required documentation to your loan servicer, be sure to follow up with them to verify that your deferment has been approved. If required, keep making payments on your loan until you receive a notice that the deferment has been granted. Also, it is important that you keep copies of all forms, documents, and correspondence concerning your deferment.

It is important to know when your deferment begins and ends. Generally, the first payment after a deferment will be due no later than 60 days after the date your deferment ends. You will receive notification from your loan servicer telling you the due date and payment amount. Be sure to keep the upcoming payment in your budget to help you stay on track when you resume making payments

Loan servicer

A loan servicer is an organization hired by a lender or the U.S. Department of Education (ED) to administer Federal student loans. If you do not know who your loan servicer is, please sign on to NSLDS. Once you have signed into your NSLDS account, click on each loan to find your loan servicer contact information.

Your loan servicer’s website will have very important information concerning your Direct PLUS Loan. When you visit their website, it may be possible to open an account online. Through this account, you may be able to make online payments, apply for a deferment or forbearance, and view updates concerning your loan. If you provide your loan servicer with your current email address, you may be able to receive timely notices concerning your account.

It is very important that you notify your loan servicer if your address, email, or phone number changes. Also, be sure to open any correspondence received from your loan servicer.

Repayment plans

There are several repayment plans available for repaying your Direct PLUS Loan. The availability of some repayment plans may vary depending on your outstanding loan balance, type of loan, and repayment term remaining.

The chart below lists the types of repayments plans available for all Federal student loans

Repayment
Plan

Eligible Loans

Monthly Payment
and Time Frame

Quick Comparison

Standard Repayment Plan

Direct Subsidized and Unsubsidized Loans

Subsidized and Unsubsidized Federal Stafford Loans

all PLUS loans

Payments are a fixed amount of at least $50 per month.

Up to 10 years

You’ll pay less interest for your loan over time under this plan than you would under other plans.

Graduated Repayment Plan

Direct Subsidized and Unsubsidized Loans

Subsidized and Unsubsidized Federal Stafford Loans

all PLUS loans

Payments are lower at first and then increase, usually every two years.

Up to 10 years

You’ll pay more for your loan over time than under the10-year standard plan.

Extended Repayment Plan

Direct Subsidized and Unsubsidized Loans

Subsidized and Unsubsidized Federal Stafford Loans

all PLUS loans

Payments may be fixed or graduated.

Up to 25 years

Your monthly payments would be lower than the 10-year standard plan.

If you are a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans.

If you are a FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans.

For example, if you have $35,000 in outstanding FFEL Program loans, and $10,000 in Direct Loans, you can use the extended repayment plan for your FFEL Program loans, but not for your Direct Loans.

For both programs you must also be a “new borrower” as of Oct. 7, 1998.

You’ll pay more for your loan over time than under the 10-year standard plan.

Income-Based Repayment Plan (IBR)

Direct Subsidized and Unsubsidized Loans

Subsidized and Unsubsidized Federal Stafford Loans

all PLUS loans made to students

Consolidation Loans (Direct or FFEL) that do not include Direct or FFEL PLUS loans made to parents

Your maximum monthly payments will be 15 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply).

Your payments change as your income changes.

Up to 25 years

You must have a partial financial hardship.

Your monthly payments will be lower than payments under the 10-year standard plan.

You’ll pay more for your loan over time than you would under the 10-year standard plan.

If you have not repaid your loan in full after making the equivalent of 25 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven.

You may have to pay income tax on any amount that is forgiven.

Pay As You Earn Repayment Plan

Direct Subsidized and Unsubsidized Loans

Direct PLUS loans made to students

Direct Consolidation Loans that do not include (Direct or FFEL) PLUS loans made to parents

Your maximum monthly payments will be 10 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply).

Your payments change as your income changes.

Up to 20 years

You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011.

You must have a partial financial hardship.

Your monthly payments will be lower than payments under the 10-year standard plan.

You’ll pay more for your loan over time than you would under the 10-year standard plan.

If you have not repaid your loan in full after you made the equivalent of 20 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven.

You may have to pay income tax on any amount that is forgiven.

Income-Contingent Repayment Plan

Direct Subsidized and Unsubsidized Loans

Direct PLUS Loans made to students

Direct Consolidation Loans

Payments are calculated each year and are based on your adjusted gross income, family size, and the total amount of your Direct Loans.

Your payments change as your income changes.

Up to 25 years

You’ll pay more for your loan over time than under the 10-year standard plan.

If you do not repay your loan after making the equivalent of 25 years of qualifying monthly payments, the unpaid portion will be forgiven.

You may have to pay income tax on the amount that is forgiven.

Income-Sensitive Repayment Plan

Subsidized and Unsubsidized Federal Stafford Loans

FFEL PLUS Loans

FFEL Consolidation Loans

Your monthly payment is based on annual income.

Your payments change as your income changes.

Up to 10 years

You’ll pay more for your loan over time than under the 10-year standard plan.

Each lender’s formula for determining the monthly payment amount under this plan can vary.

Chart adapted from Studentaid.ed.gov

You can change your repayment plan at any time. You may be able to lower your monthly payment by changing the repayment plan to one that will allow you to have a longer repayment period. Forbearance and deferment time periods do not count against the repayment term on your student loan. To discuss repayment plan options or change your repayment plan, contact your loan servicer.

Before you contact your loan servicer to discuss repayment plans, you may want to use a repayment estimator to see which plans best meet your current financial situation. The estimator will also project your monthly payment amount, total interest paid, and total amount paid.

Trouble making payments

Overview

If you begin having trouble making your scheduled loan payments, contact your loan servicer immediately. You are considered delinquent the day after your payment is due. Once you become delinquent, your loan servicer will attempt to contact you to help you determine the best solution for getting back on track. Please do not ignore phone calls, emails, or letters from your student loan servicer.

Several options are available to help reduce or postpone your Direct PLUS Loan payments. You may be able to postpone your payment for a time period if you qualify for a deferment or a forbearance. If you do not qualify for a deferment or a forbearance, you may be able to lower your monthly payment by changing your repayment plan to one that will allow you to have a longer repayment period or to one that is based on your income. Check with your loan servicer and the information listed on your Master Promissory Note (MPN) for specific information concerning the type of deferment and forbearance you are eligible to receive

Deferment

A deferment is an authorized temporary suspension of repayment and may be granted under certain circumstances. You will be responsible for paying the interest that accrues on your Direct PLUS Loan, which will make the amount you pay in the future higher.

You must apply and meet certain eligibility criteria for a deferment to be granted. Your eligibility for a deferment depends on the loan type and when you received the oldest outstanding loan of that type. Some deferments have maximum time limits. If you use up the maximum amount of time for a deferment with a limit, you are no longer eligible for additional deferments of that type.

The following chart provides situations that may make you eligible for a deferment of your PLUS loan.

Situations When You May Apply for Deferment	Deferment Available? (and for how long, if applicable)
Situations When You May Apply for Deferment	Direct Loans	FFEL Loans	Perkins Loans
During a period of at least half-time enrollment in college or career school	Yes	Yes	Yes
During a period of study in an approved graduate fellowship program or in an approved rehabilitation training program for the disabled	Yes	Yes	Yes
During a period of unemployment or inability to find full-time employment	Yes (for up to 3 years)	Yes (for up to 3 years)	Yes (for up to 3 years)
During a period of economic hardship (includes Peace Corps service)	Yes (for up to 3 years)	Yes (for up to 3 years)	Yes (for up to 3 years)
During a period of service qualifying for Perkins Loan discharge/cancellation	No	No	Yes
During a period of active duty military service during a war, military operation, or national emergency	Yes	Yes	Yes
During the 13 months following the conclusion of qualifying active duty military service, or until you return to enrollment on at least half-time basis, whichever is earlier, if you are a member of the National Guard or other reserve component of the U.S. armed forces and you were called or ordered to active duty while enrolled at least half-time at an eligible school or within six months of having been enrolled at least half-time	Yes	Yes	Yes

If you are a Direct Loan or FFEL Program borrower who has a loan that was first disbursed (paid to you or on your behalf) before July 1, 1993, you may be eligible for additional deferments for such situations as teaching in a teacher shortage area, public service, being a working mother, parental leave, or temporary disability.

Chart adapted from Studentaid.ed.gov

Your loan servicer will be able to help determine if you qualify for a deferment. To apply for a deferment, contact your loan servicer. If you do not know who your loan servicer is, please sign on to NSLDS. Once you have signed into your account, click on each loan to find your loan servicer contact information.

After you submit a deferment application and any required documentation to your loan servicer, be sure to follow up with them to verify that your deferment has been approved. Keep making payments on your loan until you receive a notice that the deferment has been granted. Also, it is important that you keep copies of all forms, documents, and correspondence concerning your deferment.

Forbearance

If you are unable to make your scheduled loan payments, but you do not qualify for a deferment, you may qualify for a forbearance. With a forbearance, you may be able to stop making payments or reduce your monthly payment for up to 12 months. Interest will continue to accrue on your Direct PLUS Loan during the forbearance period which will make your future payments higher.

There are two types of forbearance, discretionary and mandatory. Your loan servicer may grant a discretionary forbearance if you are willing but unable to make payments and do not qualify for a deferment. Instances in which a discretionary forbearance may be granted are:

Temporary financial hardship
Less than half-time enrollment
Unemployment (beyond maximum deferment time limit)
Reduction in work hours
Life-changing circumstances

In certain circumstances, your loan servicer must grant a mandatory forbearance. To see if you qualify for a mandatory forbearance for your PLUS loan, check with your loan servicer and the information listed on your Master Promissory Note (MPN) for specific information concerning the eligibility criteria.

Your loan servicer will be able to help determine if you qualify for a forbearance. To apply for a forbearance, contact your loan servicer. You may be able to apply for a forbearance with your loan servicer over the phone. If you do not know who your loan servicer is, please sign on to NSLDS. Once you have signed into your NSLDS account, click on each loan to find your loan servicer contact information.

After you submit a forbearance application and any required documentation to your loan servicer, be sure to follow up with them to verify that your forbearance has been approved. Keep making payments on your loan until you receive a notice that the forbearance has been granted. Also, it is important that you keep copies of all forms, documents, and correspondence concerning your forbearance.

It is important to know when your forbearance begins and ends. Generally, the first payment after a forbearance will be due no later than 60 days after the date your forbearance ends. You will receive notification from your loan servicer telling you the due date and payment amount. Be sure to keep the upcoming payment in your budget to help you stay on track for when you resume making payments.

Discharge and forgiveness

In certain circumstances, you may have your Direct PLUS Loan discharged or forgiven. Discharge of your PLUS loan means that you are no longer expected to repay your loan. Forgiveness of your PLUS loan means that you may not be required to repay part or all of your loan depending on specific requirements. Check with your loan servicer and the information listed on your Master Promissory Note (MPN) for specific information concerning the type of forgiveness and discharge you are eligible to receive.

Your loan servicer will be able to help determine if you qualify for a discharge or forgiveness of your PLUS loan. If you do not know who your loan servicer is, please sign on to NSLDS. Once you have signed into your NSLDS account, click on each loan to find your loan servicer contact information.

After you submit a discharge or forgiveness application and any required documentation, be sure to follow up to verify the status of your request. Keep making payments on your loan until you receive a notice that the discharge or forgiveness has been approved. Also, it is important that you keep copies of all forms, documents, and correspondence concerning your request.

The chart below lists the types of discharge and forgiveness options available for all Federal student loans.

Discharge and Forgiveness Options Chart

Discharge
Condition

Eligible Loans

Eligibility
Requirements

To Apply

Closed School Discharge

100% amount discharged

Direct Loans

Federal Family Education Loan (FFEL) Program Loans

Perkins Loans

Your school closes while you’re enrolled, and you do not complete your program because of the closure. If you were on an approved leave of absence, you are considered to have been enrolled at the school.

Your school closes within 120 days after you withdraw.

For more information and to apply, contact your loan servicer.

Total and Permanent Disability Discharge (TPD)

100% amount discharged

Direct Loans

Federal Family Education Loan (FFEL) Program Loans

Perkins Loans

If you are a veteran, submit documentation from the U.S. Department of Veterans Affairs (VA) showing that the VA has determined you are unemployable due to a service-connected disability.
If you are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits, submit a Social Security Administration (SSA) notice of award for SSDI or SSI benefits stating that your next scheduled disability review will be within five to seven years from the date of your most recent SSA disability determination.
You may submit certification from a physician that you are totally and permanently disabled. Your physician must certify that you are unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that

Can be expected to result in death,
Has lasted for a continuous period of not less than 60 months, or
Can be expected to last for a continuous period of not less than 60 months.

For more information and to apply for a TPD discharge, go to Total and Permanent Disability Discharge.

Death Discharge

100% amount discharged

Direct Loans

Federal Family Education Loan (FFEL) Program Loans

Perkins Loans

If you, the borrower, die, then your Federal student loan will be discharged.

If you are a parent PLUS loan borrower, your loan may be discharged if you die or if the student on whose behalf you obtained the loan dies.

For more information, contact your loan servicer.

Discharge in Bankruptcy (in rare cases)

100% amount

discharged

Direct Loans

Federal Family Education Loan (FFEL) Program Loans

Perkins Loans

If you file Chapter 7 or Chapter 13 bankruptcy, you may have your Federal student loan discharged in bankruptcy only if the bankruptcy court finds that repayment would impose undue hardship on you and your dependents.

To determine hardship, you must meet each of the following criteria:

If you are forced to repay the student loan, you would not be able to maintain a minimal standard of living.
There is evidence that this hardship will continue for a significant portion of the loan repayment period.
You made good faith efforts to repay the student loan before filing bankruptcy (usually this means you have been in repayment for a minimum of five years).

For more information, contact your loan servicer.

False Certification of Student Eligibility

Unauthorized Payment Discharge

100% amount discharged

Direct Loans

Federal Family Education Loan (FFEL) Program Loans

Your school falsely certified your eligibility to receive a Federal student loan based on your ability to benefit from its training, and you did not meet the ability to benefit student eligibility requirements.

The school signed your name on the application or promissory note without your authorization or the school endorsed your student loan check or signed your authorization for electronic funds transfer without your knowledge, unless the proceeds of the loan were delivered to you or applied to charges owed by you to the school.

Your student loan was falsely certified because you were a victim of identity theft.

The school certified your eligibility, but because of a physical or mental condition, age, criminal record, or other reason, you are disqualified from employment in the occupation for which you were being trained.

For more information and to apply, contact your loan servicer.

Unpaid Refund Discharge

Discharge amount is up to the amount that the school was required to return.

Direct Loans

Federal Family Education Loan (FFEL) Program Loans

If you withdrew from school, but the school did not pay a refund that was owed to the U.S. Department of Education for a Direct Loan or to the lender for a FFEL Program loan.

For more information and to apply, contact your loan servicer.

Perkins Loan Cancellation and Discharge (includes Teacher Cancellation)

The total percentage that can be canceled depends on the type of service performed.

Perkins Loans

Federal Perkins Loan Program cancellations apply to individuals who perform certain types of public service or are employed in certain occupations.

For each complete year of service, a percentage of the loan may be canceled.

For more information and to apply, contact the school that you were attending when you received the student loan.

Teacher Loan Forgiveness

The total amount that can be forgiven depends on the type of teaching service performed.

Direct Loans

Federal Family Education Loan (FFEL) Program Loans

If you teach full time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and meet other qualifications, you may be eligible for forgiveness of up to a combined total of $17,500 on your Federal student loan.

You must not have had an outstanding balance on Direct Loan or Federal Family Education Loan (FFEL) Program loans as of Oct. 1, 1998, or on the date that you obtained a Direct Loan or FFEL Program loan after Oct. 1, 1998.

If you are in default on a Federal student loan, you are not eligible for forgiveness of that loan unless you have made satisfactory repayment arrangements with the loan servicer of the defaulted loan.

The student loan for which you are seeking forgiveness must have been made before the end of your five academic years of qualifying teaching service.

You must have been employed in an elementary or secondary school that is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.

Your teaching service may qualify if the consecutive five-year period includes qualifying service performed after the 2007–08 academic year at an eligible educational service agency.

If your school meets the above requirements for at least one year of your teaching service, but does not meet these requirements during subsequent years, your subsequent years of teaching at the school may be counted toward the required five complete and consecutive academic years of teaching.

For more information and to apply, contact your loan servicer.

Public Service Loan Forgiveness

Discharge amount is 100% of the remaining outstanding balance on an eligible Direct Loan.

Direct Loans

You must work in public service and make 120 qualifying payments while employed full time by a public service employer.

Your required 120 payments must be made under one of the following repayment plans:

Income-Based Repayment Plan
Income-Contingent Repayment Plan
Pay As You Earn Repayment Plan
Standard Repayment Plan

For more information, please click here.

Chart adapted from Studentaid.ed.gov

Paying for College

Information for parents

Saving for college

Tax benefits

Federal Direct PLUS Loan for parents

Overview

Eligibility

Apply using the FAFSA

Adverse credit

Master Promissory Note (MPN)

Loan amount, interest, and fees

Receive loan

Repayment

In-school deferment

Loan servicer

Repayment plans

Trouble making payments

Overview

Deferment

Forbearance

Discharge and forgiveness