The total amount it should cost the student to go to school, including tuition and fees, room and board, books and supplies, transportation, etc. A loan is in default when the borrower fails to pay several regular installments on time or otherwise fails to meet the terms and conditions of the loan. With a subsidized loan, the federal government pays the interest charges during the deferment period. With an unsubsidized loan, the borrower is responsible for the interest that accrues during the deferement period.
Many educational institutions use a portion of their endowment income for financial aid.
Free Application for Federal Student Aid used to apply for all federal need-based aid. Funds for these loans are provided by private lenders, such as banks, credit unions, and savings and loan associations. These loans are guaranteed against default by the federal government. A record of all federal aid received by the student at each school attended. When applying for financial aid, the school requires an FAT from every previously attended school.