Return to glossary index. For more information about the Federal Pell Grant see the Financial Aid Programs Page . In some federal aid programs the financial aid administrator can override the amount of aid granted when extenuating circumstances exist. For more information see the page on Financial Aid Review Process . 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. Parents may borrow up to the full cost of their children's education, less the amount of any other financial aid received. Beginning with the 1995-1996 academic year, George Mason University will participate in the Federal Direct PLUS Loan Program .