Student Loan Debt

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.

Student Loan Debt

Responsible Borrowing Video

Borrowing Wisely

Attending college is an investment in your future. For many students, part of that investment involves taking out a student loan to meet educational costs. What do you need to consider when borrowing money for college? Make it your goal to finish college owing as little money as you can. Remember, a college education increases your earning power, but don’t jeopardize your future by over borrowing.

Federal Subsidized and Unsubsidized Loans are considered financial aid, just like a Federal Pell Grant. The difference between a grant and a loan is that you have to repay a student loan. Consider the following tips to help you avoid or at least minimize student loan debt:

Explore all options for financing college including available grants, scholarships, and institutional aid. A Federal grant is money that does not have to be repaid and is based on financial need. To apply for a Federal grant, complete the Free Application for Federal Student Aid (FAFSA). There are four types of Federal grants:
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
Teacher Education Assistance for College and Higher Education (TEACH) Grant
Iraq and Afghanistan Service Grant (IASG)

Financial aid in the form of a scholarship is money that does not have to be repaid. Receiving a scholarship will help reduce the cost of your education. Scholarships may be offered by schools, employers, individual companies, communities, religious groups, or various organizations. Scholarships may be merit-based. A merit-based scholarship can be earned by meeting certain standards set by the scholarship-giver, which may include academic achievement, special talents, and other interests. Some scholarships are based on
financial need. Many scholarships are geared toward a particular group of people. For instance, there are scholarships for military families, single parents, or students majoring in specific degrees.

Before borrowing, read and understand the terms and conditions of your loan.
Borrow only what you need! You do not have to borrow the maximum amount each year you are in school. Borrow responsibly so you will be able to repay your student loan without giving up other necessities, like housing and transportation. Use a repayment estimator to help you determine what your monthly payment might be once you finish college.
Plan to graduate on time. Not graduating on time can add up to a lot of student loan debt. Consider taking more classes each semester than the minimum required to be considered a full-time student. The sooner you earn your degree, the sooner you can start job hunting, and the less money you will need to borrow.

Becoming a Student Loan Expert

Once you borrow your first Direct Loan, you should make yourself a student loan expert. Follow these ten steps to ensure that you are knowledgeable about your debt:

1. Keep track of each loan – Know the type of loan, whether it is a Federal Subsidized Loan or Federal Unsubsidized Loan, the loan servicer of each loan, the loan amounts, when payments are due, and what repayment options are available to help you make your payments. Set up an account on www.NSLDS.ed.gov (NSLDS) to see a current record of all of your loans, who services them, and the total amount of debt you owe.

2. Know your grace period – Different loans have different grace periods. For example, Federal Subsidized Loans and Federal Unsubsidized Loans have a six-month grace period that begins immediately after leaving school before your first payment is due. Grace periods are specific to each loan. If you borrow a Federal Perkins Loan, you will have a nine-month grace period for this loan.

3. Stay in touch – If you move, change your telephone number or email address, or change your name, update your loan servicer with this information. Also, open and read each piece of mail you receive even if you don’t recognize the return address.

4. Pick the right repayment option – Federal student loans have various repayment options. Learn about them and carefully select the option that best suits your situation. You can change your repayment plan if your current plan is not working for you.

5. Don’t panic – If you are experiencing problems making payments, talk to your loan servicer about options. Check into a deferment or forbearance to see if you qualify.

6. Stay out of trouble – Don’t ignore your student loans. Not making your student loan payments can lead to delinquency and, potentially, default. Once you default on your student loan, your wages and taxes can be garnished, the total amount you owe will increase due to collection costs, and your credit will be negatively affected.

7. Lower the principal – If you can afford to make more than the minimum payment, do so to reduce the principal amount of your student loan. You can save thousands of dollars. Make sure your loan servicer knows that the additional payment is to be applied to the principal and not applied to advance the payments. Keep a copy of all correspondence you have with your loan servicer regarding payments.

8. Pay off the most expensive loan first – If you are paying off multiple loans, consider paying extra on the loan with the highest interest rate. Adding $10 to a monthly payment will help you pay ahead of schedule and ultimately pay off the loan early.

9. Consolidate or don’t consolidate – Consolidation combines multiple loans into one loan for a single monthly payment and one fixed interest rate. If you are considering consolidation, please review the pros and cons of consolidation in the chart below.

10. Explore loan forgiveness – Federal student loans may qualify for forgiveness under various programs, including Teacher Loan Forgiveness, Public Service Loan Forgiveness, or volunteer programs such as AmeriCorps.

Consolidation Chart

PROS	CONS
Multiple Federal student loans are combined into one loan with one monthly payment. This makes the repayment process easier.	If you consolidate your loans during the grace period, you will begin repayment immediately. You may lose the remainder of your grace period and possible interest benefits on a subsidized loan.
Consolidation provides access to multiple repayment plans. The terms of a repayment plan depend on the balance of the loan, which is higher on a consolidation loan.	The longer the repayment period on your consolidation loan, the more interest you will pay which will increase the amount paid over the life of the loan.
Monthly payments are lower for a consolidation loan because the repayment period is longer.	Variable interest rates change annually. If you consolidate your variable interest rate loans and then the interest rates drop, you will still be locked into the higher fixed interest rate for the life of the loan.
Consolidating variable interest rate loans when the interest rate is low can save money.	You may not be eligible to receive the same deferments on your consolidation loan that you were eligible for on your original loans.
Consolidating an 8.5% fixed rate PLUS loan reduces the interest rate by .25% because the interest rate cap on a consolidation loan is 8.25%.	You may lose any borrower benefits that you are receiving on your loans from your current loan servicer. Borrower benefits may include interest rate discounts, principal rebates, or some loan cancellation benefits offered under non-consolidated repayment plans.
Consolidation resets the 3-year clock on certain deferments and forbearances. A consolidation loan is a new loan with its own new set of deferments and forbearances.	You can only consolidate once.
Consolidating your loans allows you to switch loan servicers. You may be able to find a loan servicer with better borrower benefits.	Private education loans are not eligible to be consolidated into a Direct Consolidation loan.
You can consolidate your FFEL Program loans into a Direct Consolidation loan. This may allow you to have different options for repaying your loan and different forgiveness programs.
If your loan is in default, you may be able to consolidate your loan after making satisfactory repayment arrangements with the holder of your defaulted loan. If you consolidate those loans, benefits that were lost when your loan was placed into default are reinstated. These benefits include deferment, forbearance and eligibility to apply for additional Federal financial aid.

Repayment Strategies

There are several repayment plans available for Federal student loans. The availability of some repayment plans may vary depending on your outstanding loan balance, type of loan, and repayment term remaining. You can change your repayment plan at any time. You may qualify for any of the following repayment plans:

Overview of Student Loan Repayment Plans:

Repayment

Eligible Loans

Monthly Payment

Quick Comparison Plan and Time Frame

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 the10-10-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.

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

Your 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

Financial Literacy

Student Loan Debt

Responsible Borrowing Video

Borrowing Wisely

Becoming a Student Loan Expert

Repayment Strategies