Promissory NoteĪ promissory note is a legal document that must be signed by the student borrower before loan funds are given by the lender. Unlike a grant, a loan provides money for school now that you do need to pay back later. The PLUS loan is a non-need, credit-based loan similar to a private student loan with the benefit of having a fixed interest rate and federal guarantee (backed by government funds). The Perkins Loan is a federally-subsidized (no interest while in school), fixed low interest (5%) loan that is offered to full-time undergraduate day students. GrantĪ grant is a type of financial aid based on financial need that you don’t have to pay back. This is a great time to get organized and choose a repayment plan. The grace period is the 6-month window after you graduate before you need to start repaying your loans. Financial Needįinancial need is the difference between the Cost of Attendance and the Expected Family Contribution, and it’s used in determining your eligibility for need-based financial aid. This is the complete collection of grants, scholarships, loans and work-study employment from all sources (federal, state, institutional and private) offered to assist you with attending a college or university. Verification is a review process in which the financial aid office determines the accuracy of the information provided on your financial aid application. This is the organization that processes the information submitted on the FAFSA and uses it to determine eligibility for federal student aid. The Federal Methodology takes family size, the number of family members in college, taxable and nontaxable income, and assets into account. This is the need analysis formula used to determine the EFC. You’ll need to re-file each year that you’re in school to stay up to date with changing financial situations. This could look like grants, loans, work study or scholarships. The FAFSA is the form used to apply for financial aid. Free Application for Federal Student Aid (FAFSA) The EFC is calculated by results that are reported on the Free Application for Federal Student Aid (FAFSA). The EFC is the minimum amount of money that your family is expected to be able to contribute to your education, decided by the Federal Methodology need analysis formula approved by Congress. Like entrance counseling, it only takes 30 minutes and helps you to understand your loan obligations and repayment options. If you graduate, are no longer enrolled in school, or drop below part-time enrollment, you’re required to complete exit loan counseling. It only takes about 30 minutes and helps to ensure you understand the terms and conditions of your loans, along with your rights and responsibilities. If you’re receiving educational loans, you’re required to complete entrance loan counseling before you receive your first payment. If you're a dependent student, you’ll report your and your parents' information. This will determine whose information you include on the FAFSA. Dependency Statusĭependency status refers to whether you’re a dependent or independent. The most common type of deferment happens when you’re in school, meaning you don’t have to think about paying it back until you leave. Defermentĭeferment occurs when you’re allowed to postpone repaying the loan. DefaultĪ loan is in default when you fail to pay several regular installments on time or otherwise fail to meet the terms and conditions of the loan. Cost of Attendance (COA)ĬOA is the total amount it should cost you to go to school, including tuition and fees, room and board, allowances for books and supplies, transportation and personal and incidental expenses. Professional Judgment refers to the authority of a school's financial aid administrator to make those adjustments. Tuition & Financial Aid Tuition & Financial AidĪn appeal is a formal request to have a financial aid administrator review your aid eligibility and possibly use Professional Judgment to adjust the figures.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |