The process of determining a student's need is known as the need analysis. The origination fee is an upfront charge deducted from the loan to pay part of the loan's administrative costs. For undergraduate students, first baccalaureate degree only. Eligibility is determined by the Department of Education. Principal Principal is the amount of money borrowed under the loan.
Interest is charged as a percentage of the principal.
A promisory note is the binding legal document signed by the student borrower before loan funds are disbursed by the lender. The promisory note states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy, and cancellations. The student should keep this document until the loan has been repaid. The SAR will also indicate eligibility for Pell Grant. A student must be making Satisfactory Academic Progress in order to continue receiving federal aid.