An insurance premium deducted from the borrower's loan proceeds prior to disbursement and paid to the guaranty agency that insures the loan. A program which involves the verification of financial aid application information. Participants are randomly selected out of all aid recipients and required to submit various documentation. IQAP provides a means to do a systematic, detailed analysis of procedures determining eligibility, management policies, general Financial Aid Office policies, and procedures and collection of required supporting documents, as well as helping institute corrective action measures for the future. A fee charged for the use of borrowed money.
Interest is calculated as a percentage of the principal loan amount.
Some schools are also lenders. A process of reviewing a student's aid application to determine the amount of financial aid a student is eligible for. Completing a needs analysis form is the required first step in applying for most types of financial aid. New borrowers may be subject to different regulations than borrowers who have existing loan balances. The amount borrowed.