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Glossary
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Alternative
Loan: An
educational loan approved by a lender and not affiliated with
FFELP.
Cost of Attendance: The sum of tuition, fees, and the
estimated cost of books, supplies, and living expenses.
Default:
Failure to repay loans according to the terms agreed upon in the promissory
note.
Deferment: An authorized period of time during which loan
payments maybe postponed.
Disbursement: Loan funds issued by the
lender through check (normally co-payable to the student and the school) or
electronic funds transfer.
Eligible Non-Citizen: Refugees, persons
granted asylum, conditional entrants, paroled indefinitely for humanitarian
reasons, Cuban-Haitian entrants.
Eligible Program: Course
of study that leads to a degree or certificate and meets the U.S. Department of
Education’s requirements for an eligible program.
Expected Family
Contribution (EFC): A family’s ability to pay for the student’s education
according to a formula determined by federal government.
FFELP:
Federal Family Education Loan Program.
Full-Time: At least 12
credits.
Grace Period: A specified period between the time the
student leaves school or drops below half-time study and the time loan repayment
begins.
Guaranty Agency: An organization that insures Federal
Family Education Loans.
Half-Time Student: At least six
credits.
Interest: A percentage of your outstanding principal loan
amount charged for the use of borrowed money.
Lender: A bank or
trust that issues loan disbursements.
Master Promissory Note
(MPN): A legally binding contract between student and lender that contains
all the conditions and terms under which the student agrees to repay his/her
loan(s) with interest.
Permanent Resident: A non-citizen who is
legally permitted to live and work in the United States
permanently.
Principal: The loan amount
borrowed.
Satisfactory Academic Progress: Student must make
sufficient quantitative progress, measured in attempted credit hours, to
complete his/her program.
Selective Service Registration: All
qualified male students must be registered with the selective
service.
Servicer: An organization that provides borrower services
and performs administrative functions associated with education
loans.
Subsidized Loan: A loan on which the interest is paid by
the federal government during school, grace, and other authorized deferment
periods.
Unsubsidized Loan: A loan on which the student is
responsible for all interest payments.
U.S. Citizen: Citizen of
the 50 states, the District of Columbia, Puerto Rico, The U.S. Virgin Islands,
Guam, and the Northern Mariana Islands. All citizens are considered to be
U.S. nationals. Not all nationals are
U.S. citizens: residents of
American Samoa and Swain Islands
are not U.S. citizens but nationals and,
therefore, may receive SFA funds.
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