Financial aid programs administered by colleges and universities that are funded by fixed annual allocations from the federal government, such as Federal Work-Study Programs.
The outstanding unpaid interest amount that is added to the principal balance of the loan, thereby increasing the principal balance, the monthly payment amount and the total amount to be paid on the loan. After we Capitalize interest, interest will accrue on the new Principal balance, including the Capitalized interest.
A person who agrees to repay the loan in the event the primary borrower does not. A cosigner is considered a co-borrower and is equally responsible for repayment of the loan.
The estimated amount the federal government, through the Free Application for Federal Student Aid (FAFSA®), expects a family to contribute to the cost of a college education based on income, assets, and other circumstances.
A loan program that was authorized by the federal government under the Higher Education Act of 1965, as amended. This program included Federal Stafford, PLUS, and Consolidation Loans. These loans were funded by lenders, guaranteed by guaranty agencies, and ultimately insured by the federal government.
The Health Care and Education Affordability Reconciliation Act of 2010 prohibits lenders from originating federal student loans under the Federal Family Education Loan Program on or after July 1, 2010.
A standard federal form used to determine the eligibility for most types of financial aid, including federal student loans.
FAFSA is a registered service mark of the U.S. Department of Education.
The interest rate banks charge each other for loans. LIBOR is used as an interest rate index.
A campus-based, low-interest education loan for undergraduate and graduate students. The school acts as the lender using a limited pool of funds provided by the federal government. These loans are awarded based on exceptional financial need. The authority for schools to make new Federal Perkins Loans ended on Sept. 30, 2017.
A document from the IRS that a borrower provides to their private student loan lender to certify that the loan proceeds are used solely to pay for qualified higher education expenses.