Students who are not high school graduates or who have not earned a General Education Development (GED) Certificate can demonstrate that they have the "ability to benefit" from the education or training being offered by passing an approved ability-to-benefit (ATB) test.
Academic year is defined as a period of time schools use to measure a quantity of study. A school's academic year may consist of a Fall and Spring semester during which a full-time undergraduate student must complete 24 semester/trimester hours, 36 quarter hours, or 900 clock hours. Academic years vary from school to school and even from educational program to educational program at the same school.
To be eligible to participate in the administration of Federal Student Aid Programs, schools must have accreditation from an accrediting body recognized by the U.S. Department of Education. Accreditation means that the school meets certain minimum academic standards, as defined by the accrediting body.
An award letter is the letter that your college sends you detailing the financial aid programs for which you're eligible and the amounts you can receive.
There are certain loans, such as subsidized Loans, the U.S. Department of Education pays the interest that accrues while the student is enrolled at least half-time and during periods of deferment. However, with subsidized loans in forbearance, unsubsidized loans or PLUS Loans, the student or the student's parents are responsible for paying interest as it accrues on these loans. When the interest is not paid, it is capitalized or added to the principal balance, which increases the outstanding principal amount due on this loan. Interest that is capitalized subsequently accrues interest, adding an additional expense to the loan.
A NOT-FOR-PROFTT organization dedicated to helping you prepare for college. COSTEP offers Financial Aid Literacy information. Plus, we help you and your parents understand the best financial aid options. As a student loan servicer, our website offers terms, definitions and forms you can utilize when preparing to pay back your student loans
This is the total amount it will cost to attend a college or university including: tuition and fees, room and board, supplies, transportation and miscellaneous expenses. Cost of Attendance varies by school.
A deferment is a temporary suspension of a borrowers monthly loan payment. (During deferment, the Federal Government will pay the interest on Subsidized Stafford Loans only. If you have an Unsubsidized Stafford Loan, you will be responsible for paying the accrued interest.)
Default occurs when you become 270 days delinquent in making a payment on your loan(s).
Federal agency responsible for setting policies and administering the Loan Programs.
The amount of loan or TeachGrant proceeds paid by the school to the student, the parent borrower (for loans), or applied to the students account. Generally, a loan or grant is paid in two installments or disbursements.
The statement you receive indicating the amount of your loan and when it will be disbursed.
A program of organized instruction that leads to an academic, professional or vocational degree or certificate, or other recognized educational credential. To receive Federal Student Financial Aid, you must be enrolled in an eligible program. There are two exceptions:
Amount you and your parents are expected to pay toward college expenses as determined by the Department of Education.
This is, basically, how much money you are eligible to receive. It's the Cost of Attendance minus your Expected Family Contribution (EFC) and any additional Financial Aid you may receive.
The gap between the cost of going to college (known as the cost of attendance) and what your family is expected to pay.
A period of time during which the holder of your loan temporarily suspends or reduces your loan payments. Forbearance is usually granted to borrowers without deferment eligibility. You are responsible for all interest that accrues during forbearance. Interest may be paid as it accrues during forbearance or it may be added to your principal.
This is a certificate that is issued when a student passes a high school equivalency test
To qualify as a Graduate/Professional Student, you must be enrolled at least half-time in a graduate or professional program (for example, a program that leads to a Master's, Doctoral, Law or Medical degree) at a school that participates in the PLUS Program, and you must meet all of the other general eligibility requirements for the Federal Student Aid programs.
A state or private organization that insures your loan. They act as a liaison between the school, your parents and the holder of your loan to ensure compliance with Federal regulations.
At schools measuring progress in credit hours and semesters, trimesters or quarters, "half-time" is at least six semester hours or quarter hours per term of an undergraduate program. At schools measuring progress by credit hours but not using semester, trimesters or quarters, "half-time" is at least 12 semester hours or 18 quarter hours per year. At schools measuring progress by clock hours, "half-time" is at least 12 hours per week.
Check with the school that you'll be attending. Note: Schools may choose to set higher minimums than those defined here.
Your first source for information on college.
An eligible lender owning a Federal Family Educational Loan program (FFEL). This is a Federal/ State agency, or an organization or corporation acting on behalf of such an agency and acting as a conservator, liquidator, or receiver of an eligible lender, may also be considered a holder.
This is the time that repayment of principal is not required. The period begins the day after a student ceases to be enrolled at least half time at an eligible school and ends the day before the repayment period begins.
The fee charged for the money you borrow.
The contract between you and your lender.
The amount of your loan not including interest.
A regular student is one who is enrolled or accepted for enrollment at a school for the purpose of obtaining a degree, certificate or other recognized educational credential offered by that institution.
The period in which a borrower takes on the responsibility of repaying the loans that helped finance the cost of education.
Your school's standards of satisfactory academic progress towards a degree or certificate offered by that institution. See your school for their Satisfactory Academic Progress standards.
An organization that buys student loans from a lender so the lender will have resources to fund new student loans.
If you're a male born on or after January 1, 1960, are at least 18 years old, and are not currently on active duty in the U.S. Armed Forces, you must register with the Selective Service System to be eligible to receive Federal Student Financial Aid.
An institution contracted by the Lender or the Department of Education to perform administrative functions associated with the processing of your loan.
This is a report generated by the Department of Education (DOE) upon your completion of the FAFSA. It contains your Expected Family Contribution (EFC).
This office will determine your eligibility and certify your loan.