| Deferred
Interest: |
Interest
payments that are delayed with approval of the lender.
For example, interest can be deferred while a borrower
is not gainfully employed. When the borrower becomes a
wage earner, the interest payment obligation resumes. |
| Delinquent: |
When
a payment is more that 30 days late, generally the
borrower is delinquent and remains delinquent until
payments are back on schedule or other arrangements
have been made. |
| Demonstrated
Need: |
Student
expense budget less family contribution and other
available resources. |
| Direct
Lending: |
The
federal government, as opposed to private lenders,
originates federally-guaranteed loans, whose terms and
conditions are--for the most part--the same as loans
secured from private banks. |
| Disadvantaged
Background: |
An
individual from a disadvantaged background is one who
(A) comes from an environment that has inhibited the
individual from obtaining the knowledge, skill, and
abilities required to enroll in and graduate from a
health professions school or (B) comes from a family
with an annual income below a level based on low
income thresholds published by the U.S. Bureau of
Census, which vary according to family size and which
are adjusted annually for changes in the Consumer
Price Index. |
| Disbursement
Date: |
The
date the loan check is issued by the lender. |
| Disclosure
Statement: |
A document
that lists details of the repayment agreement,
including where and when installments will be owed,
how large these installments will be, interest terms,
additional finance charges, types of credit insurance
available or required, and other information relevant
to the loan. This must be presented to the borrower by
the lender at the time the promissory note is signed
and the loan contract negotiated. |
| Eligible
Non-Citizen: |
Non-citizens
eligible to receive federal financial aid are: (1)
U.S. nationals (e.g., natives of American Samoa) and
(2) U.S. permanent residents who have a I-151, I-551,
or I-551C (Alien Registration Receipt Card). Also
eligible are students who have an Arrival-Departure
Record (I-94) from the U.S. Immigration and
Naturalization Service (INS) showing one of the
following designations: (1) Refugee; (2) Asylum
granted; (3) Indefinite Parole or Humanitarian Parole;
(4) Cuban-Haitian Entrant, Status Pending; or (5)
Conditional Entrant (valid only if issued before April
1, 1980). |
| Expected
Family: |
The amount
of money that the student and the student's family
Contribution will be expected to contribute to the
cost of education as determined by need analysis. |
| |
| Federal
Methodology: |
Federal
Methodology is the federally prescribed system of need
analysis written into law by Congress as part of the
Higher Education Amendments of 1992. Federal
Methodology became effective in 1995 and applies to
all need-based federal financial aid programs. |
| Fellowship: |
A program
beyond residency which provides sufficient financial
support to allow for at least six months of full-time
study or training. |
| Financial
Aid Package: |
The
total amount of financial aid a student receives.
Federal and non-federal aid such as loans,
scholarships, grants, or work-study are combined in a
package to help meet the student's need. |
| Financial
Aid Transcript: |
This is a
record, maintained by each school you attend, of the
student aid you received while in school. |
| Fixed
Interest: |
Rate
of interest which does not change during the life of
the loan, is determined at the time the loan is
negotiated, and is stated in the disclosure statement
and the promissory note. |
| Forbearance: |
A special
arrangement whereby a lender may delay principal
and/or interest payments to relieve a borrower's
financial hardship during the repayment period. |
| Grace
Period: |
The
time during which loan payments are postponed and the
borrower incurs no loss, penalty, or further
obligation. Some loans enter repayment immediately
following the borrower's graduation. Others have a
grace period so that repayment does not begin until
several months after graduation. |
| Graduated
Payment: |
A payment
schedule allowing for various monthly payment amounts
over the life of a loan based on periodic appraisal of
income or passage of time. |
| Gross
Income: |
Total
salary or income before deductions. |
| Guarantee
Agency: |
The
organization that administers the Federal Stafford
Student Loan Program in your state. The federal
government sets loan limits and interest rates, but
each state is free to set its own loan limitations
within federal guidelines. |
| Holder: |
An
eligible lender or approved secondary market that owns
a loan. |
| Income
Sensitive Repayment Plan: |
Repayments
that change with a borrower's income so that payments
fluctuate as income rises and falls. Payments are
based on a debt-to-income ratio. |
| Independent
Student: |
By
law, any graduate and professional student will be
considered independent when determining eligibility
for financial aid through programs of the U.S.
Department of Education. For processing of Federal
Stafford and Federal Direct Loans, no parental data is
required on the Free Application for Federal Student
Aid (FAFSA). Other scholarships and loan programs,
however, may require parental data, even if the
student is independent. |
