Technique used to determine a student s need for financial assistance to help meet educational expenses. Income after taxes, deductions, and allow-ances have been subtracted. Fee paid to the bank to compensate for the cost of administering the loan. Some of this fee is paid to federal government to offset loan administrative costs. Largest federal grant program.
Loans feature a low-interest rate and are repayable over an extended period.
College savings plan that is guaranteed to rise in value at the same rate as college tuition. Customized financial aid application required at certain colleges, which collects additional financial information to determine eligibility for institutional aid. Binding legal document signed when you get a student loan. It lists the conditions you re borrowing and terms you agree to pay back the loan. It will include information about your interest rate, deferment, and cancellation provisions.