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| H-N | • Half-time Enrollment - Normally refers to when a student is taking at least six credit hours of class. Often, enrollment must be at least half-time to qualify for financial aid.
• Income Sensitive Repayment - Income sensitive repayments are available to some federal loan borrowers (check with your lender or servicer to learn if your loans qualify for this alternative). This repayment alternative bases the monthly payment on the borrower's income in relation to total federal loan indebtedness. This option means that monthly payments can drop to as low as the amount of interest that accrues on the loan's principal balance. Federal loan borrowers must apply for this option annually and must provide documentation of income - usually in the form of a federal tax return.
• Independent Student - They are one of the following: 24 years or older (as of 12/31 of the award's year), a graduate or professional student, married, have legal dependents, a veteran of the U.S. Armed Forces or an orphan.
• Indirect Costs - Costs associated with a student's enrollment that are not billed by or incurred through the college. Indirect costs include transportation costs and other.
• Institutional Methodology Expected Family Contribution (IM EFC) - A variation of the FM EFC calculated by a college or university. This Expected Family Contribution calculation can incorporate different items than the FM EFC calculation and is used by colleges to allocate institutionally sponsored aid programs.
• Interest Rate - Federal student loan interest rates are variable, adjusted annually and set by the Department of Education each July 1st for the subsequent 12 month loan period.
• Lender - The bank or lending institution from which a student loan is borrowed.
• LIBOR - London Interbank Offered Rate; a financial index used as a reference point for determining many private loan interest rates.
• Loan Origination - Describes a series of steps required to initiate a loan starting from the application to final approval and disbursement.
• Loan Proceeds - The funds disbursed for a borrower from the lender to a school, agent, or directly to the borrower via a check, master check, or by electronic funds transfer. The origination and default fees are not included into the loan proceeds disbursed.
• Loan Servicer - Once a loan has been approved and disbursed, by the lender or the guarantee agency, it is usually transferred to a servicing company. Such companies are responsible for managing your account while you are in school and during repayment. You have to repay the servicing company until the loan is paid in full. Servicing company deal with any your questions or repayment issues. But if you are having problems with the servicer, you should contact your lender for additional assistance.
• Loans - Financial aid awards that the student (or other party like a parent, for example) borrows from a lender, the school or other third party. Borrower must repay the loans according to the terms of a promissory note, usually with interest.
• Need-blind Admissions - An admissions policy in which the ability (or inability) to pay college costs is not considered when determining a student's eligibility for admission.
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