Student Loan Number – Use the financial aid glossary to find simple definitions of terms that students and borrowers are looking for most.
An award year is generally a 12-month period that runs from July 1 to June 30 of the following year – as opposed to a calendar year, which runs from January to December. When you file your Free Application for Federal Student Aid (FAFSA®), you will select the award year in which you will attend school.
Student Loan Number
Loan consolidation occurs when a borrower combines one or more federal student loans into one automatic consolidation loan with a fixed interest rate and monthly payments. Student loans can lower your monthly payments and give you access to federal forgiveness programs. However, the repayment period may be longer and you may pay more interest than if you did not compound.
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Cooperation refers to anyone (you, your spouse, a biological or adoptive parent, or your parent’s spouse) who is asked to provide information on the Free Application for Federal Student Aid (FAFSA®) form, in order to provide permission and agreement to receive your federal . Tax information is transferred directly from the IRS to the FAFSA form and entered on the FAFSA form. Learn more about reporting parent information on your FAFSA form.
Cost of attendance refers to the total cost of a student attending a particular school. This includes expenses such as tuition, fees, books, school supplies, food and housing. Most two-year and four-year colleges calculate the cost of attendance to reflect the total cost of the academic year (eg, fall and spring semesters). Schools with time-varying programs (eg, 18-month degree programs) may share the cost of attendance covering periods other than the regular school year.
Remember that the cost of your attendance is not the price you pay the school – this is called the net price (out-of-pocket cost). The best source to truly understand the value of your education is your financial aid award.
If the borrower does not repay the student loan according to the terms agreed upon in the promissory note, the loan may default. This usually happens when the mandatory payments are not paid for more than 270 days. Student loan discharge can have legal consequences and may limit the borrower’s right to receive student aid in the future. If you’re having trouble paying off your student loans, contact a loan servicer.
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Temporary deferral of monthly federal student loan payments for borrowers who meet certain eligibility criteria. Interest will continue to rise on unsubsidized loans for most of the grace period, but not on subsidized loans. You may pay interest when it is earned or allow the interest to accrue and benefit (plus principal) at the end of the grace period. If you need to request a deferral, contact your loan servicer.
Dependency status indicates whether you are considered a dependent, independent, or temporary student when you fill out the Free Application for Federal Student Aid (FAFSA®). Independent or temporary students report only their own information (and their partner’s information if married). Dependent students report their information to their parents.
If you are a dependent student, you will report your information and your parents’ information on the FAFSA form. In most cases, a parent will be identified as the required co-signer on your FAFSA form. Learn more about dependency status.
Direct loans are federal student loans made directly to eligible students and parents by the United States Department of Education. Loan types include direct subsidized loans, indirect loans, direct PLUS loans and direct consolidated loans.
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Before receiving direct loan payments, you must complete counseling if you are a first-time student borrower. During the consultation, you will learn about your rights and responsibilities, and review the terms and conditions of your loan. You can fill out admissions counseling, but ask your school’s financial aid office for specific requirements.
If you have federal student loans and you drop out of school or are under-enrolled during the break, you must complete exit counseling. During exit counseling, you will learn important information to help you prepare to pay off your debt, including terms and conditions of loan options and repayment plans. You can complete withdrawal counseling, but ask your school’s financial aid office for specific requirements.
A repayment plan is a type of repayment plan that gives you more time to pay off your student loans. To qualify for a full payment plan, you must have more than $30,000 in Direct Loans outstanding or $30,000 or more in Federal Family Education Program (FFEL) loans. If you qualify for a payment plan, you can pay for up to 25 years. To compare all federal student loan repayment plans, use the loan calculator.
The FAFSA Submission Summary is an electronic or paper document that summarizes the information provided on the Free Application for Federal Student Aid (FAFSA®) form. It may include your estimate of your eligibility for federal Pell Grants and federal student loans, your Student Aid Index (SAI), and whether you’ve been selected for verification. Once your FAFSA form has been submitted and processed, you will receive an email with instructions on how to access an online version of the FAFSA submission summary.
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Remember: The FAFSA summary is not a financial grant. Your aid will come directly from the school you entered on the FAFSA form after you have been accepted.
The Free Application for Federal Student Aid (FAFSA®) contains criteria for determining your family size. If you are a dependent student, the number of your family will be included and may include your parents, your parents’ partner, and the children of your parents and other dependents. If you are an independent student, your family size will include and may include your spouse (if married), dependent children and other dependents.
A financial aid offer (sometimes called an award letter) tells you how much aid you can get from a particular college, vocational school, or trade school. This will include the types and amounts of federal, state, private, and school aid awarded to you, including grants, scholarships, federal student funds, and loans. Combined aid is your financial aid package.
Your aid disbursement will come from the school where you fill out the Free Application for Federal Student Aid (FAFSA®) form after you are accepted. Schools often send aid grants by email. Learn how to evaluate and compare your grants.
Step By Step On How To Apply For Student Loan
A waiver allows you to stop making monthly payments or make smaller monthly payments on your student loan. Loan interest will continue to rise during this period. Learn about the different types of forbearance and how and when they apply to your loan. If you have questions about your situation or need to request a deferral, contact your loan provider.
The grace period is the time after the borrower graduates, leaves school, or takes a break before they are required to repay the student loan. For subsidized direct loans and indirect loans, this period is six months.
Graduate or professional students with PLUS loans receive an automatic deferral of at least half an hour and six additional months after they graduate, withdraw, or drop below a break.
PLUS loan parents do not have a grace period, but they can request a deferment while their child is enrolled for at least half an hour and six more months after their child graduates, leaves school, or falls on recess.
Student Loan Statistics
An accelerated repayment plan is a type of repayment plan where student loan payments start low and increase every two years. This repayment plan is available for all Direct Loans and Federal Family Education Loans (FFEL). To compare all federal student loan repayment plans, use the loan calculator.
A scholarship is a type of financial aid that pays for college, trade school or trade school. Most scholarships are awarded to students based on financial need. Unlike student loans, these payments generally do not have to be repaid. Grants may be awarded by the federal government, state governments, schools, or private or non-profit organizations. To be considered for funding, do your research to find out about eligibility and application requirements, and be sure to submit the Free Application for Federal Student Aid (FAFSA®) to your school each year.
An IDR plan is a type of student loan repayment plan that uses income and family size to determine the monthly payment amount. There are three IDR plans with different terms and conditions: Savings Education Value Plan (SAVE), Income Based Repayment Plan (IBR) and Income Conditional Repayment Plan (ICR). To compare all federal student loan repayment plans, use the loan calculator.
On the Free Application for Federal Student Aid (FAFSA®), you will be considered an independent student if you complete any of the following.