Helpful Definitions

• Deferment
  An authorized period of time during which a student loan borrower may postpone making payments on the principal or the principal plus interest. Borrowers must file deferment forms with their lenders and be approved for deferments.
  
• Expected family contribution (EFC)
  Amount that a student and her or his parents can reasonably be expected to contribute toward college costs, computed according to federal guidelines and/or alternate guidelines.
  
• FAFSA: Free Application for Federal Student Aid
  Application used to apply for all Federal Student Aid programs including TAP, STAP, Pell, FSEOG, Stafford Loans, FDSLP, and PLUS.

FAFSA is available from:

• your High School guidance office
• the college you plan to attend
• online at: www.fafsa.ed.gov
• by contacting the:

Federal Student Aid Information Center
P.O Box 84
Washington, D.C. 20044
1-800-4-FED-AID (1-800-433-3243)

• Forbearance
  An authorized period of time during which the lender agrees to temporarily postpone a borrower’s total loan repayment obligation. At the borrower’s request, an extension of time or smaller monthly payments may be authorized. Forbearance is granted at the lender’s discretion.
  
• Grace Period
  A specific period of time after a student leaves school or drops below half-time status during which he or she is not required to make payments on either principal or interest.
  
• Grants
  Gift aid-financial aid that does not need to be repaid.
  
• Loans
  Borrowed money that you must repay.
  
• Work-Study
  Lets student work and earn money to help pay for school (usually on campus, or off campus with a non-profit agency that has entered into an agreement with your school).

TOP...