The difference between the Cost of Attendance and the Estimated Family Contribution. This amount is your total eligibility for aid from all sources, and is used in determining what your aid package will be. The letter sent out periodically notifying the student of required documents missing and needed to process their financial aid award. A type of financial aid award based on need or merit that is not repaid by the student. A fee charged for the use of borrowed money.
Interest is calculated as a percentage of the principal loan amount.
Under the William D. Ford Direct Loans Program, some schools are also lenders. A loan program that allows a borrower to combine various educational loans into one new loan. Failure to repay a student loan according to the terms agreed to when you signed a promissory note. If you default, your school, the organization that holds your loan, the state, and the federal government can all take action to recover the money, including notifying national credit bureaus of your default. An authorized period of time during which a borrower may postpone principal and interest payments.