USA Federal Direct Loans

About Federal Direct Loans

The Bristol Old Vic Theatre School (BOVTS) is eligible to certify loan applications for Federal Direct loans these include Stafford loans and PLUS loans. We can also certify private loan applications. Pell Grants and Perkins loans are not available for study outside of the USA. More information about U.S Federal Direct loans is available on the Federal Student Aid website via the following link www.ed.gov

If at any point in time you are uncertain about a term or phrase, please refer to our Glossary Section.

The Information detailed below is available throughout this document.

Types of loans available How much can I borrow What is the application process for U.S Direct Loans Cost of Attendance Disbursements Loan Eligibility Exit Counselling Policies (SAP, Return of title IV funds) Leave of absence Repayment options and obligations Contact information U.S Title IV Glossary

Types of Loan available

The Federal Direct Loan programme offers the following types of loan:

Subsidised: (for UG students only): for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods. – Not currently available at BOVTS

Unsubsidised: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.

Parent PLUS: parents of dependent undergraduate students can borrow a parent PLUS loan to help pay for educational expenses. Parents can borrow up to the total estimated cost of attendance minus any other financial aid received. Parent PLUS loans are the responsibility of the parent and not the student. – Not currently available at BOVTS

Graduate PLUS: Graduates with good credit histories may be able to borrow a PLUS loan to help with their education expenses. A graduate may borrow up to the total estimated cost of attendance minus any other financial aid received.

Private loans: The only private loan currently available to students studying at a foreign institution is the Smart loan from Sallie Mae more information on Sallie Mae loans can be found at www.salliemae.com. We would recommend that you consider a Federal Direct Loan before a Private Loan as Federal Loans have lower and fixed interest rates and more favourable terms and

conditions compared to private loans

How much can I borrow?You can borrow up to the annual loan amounts indicated below as set by the U.S Government

Undergraduate Annual Loan Amounts

Dependant undergraduates

Initial subsidised Direct

Loan

Additional unsubsidised Direct Loan

Combined (maximum)

Loan amount

Year 1 $3,500 $2,000 $5,500Year 2 $4,500 $2,000 $6,500

Year 3 and up $5,500 $2,000 $7,500Independent undergraduates or Dependant undergraduates whose parent is denied

Parent PLUSYear 1 $3,500 $6,000 $9,500Year 2 $4,500 $6,000 $10,500Year 3 $5,500 $7,000 $12,500

Postgraduate Annual Loan amountsSubsidised Unsubsidis

edCombined

(maximum) N/A $20,500 $20,500

Direct Loan Aggregate Loan Limits

Subsidized only

Total Aggregate (Subsidized and Unsubsidized combined)

Dependent undergradua

$23,000 $31,000

Independent undergraduates

$23,000 $57,500

Postgraduate students

$65,500 $138,500

A 1% origination fee applies to the Federal Direct Subsidized and Federal Direct Unsubsidized loans at the time of disbursement.

A 4% origination fee applies to the Direct PLUS loan at the time of disbursement.

What is the application process for Federal Direct Loans?

1. You will need to complete the Free Application for Federal Student Aid (FAFSA) you can do this online at www.fafsa.ed.gov.The BOVTS school code for the FAFSA is: G10794On the FAFSA website you will find details on how to obtain a PIN number which will allow you to complete this process online. You will need certain documents in order to complete your FAFSA such as your parent’s federal income tax returns and W-2s for the previous year. A full list of the documents required can be found on the FAFSA website. Once your FAFSA is completed this will produce a Student Aid Report (SAR) this is used by the university to determine your loan eligibility. Please inform marchia.abokie@oldvic.ac.uk once you have completed your FAFSA as we do not receive automatic notification direct from FAFSA that you have completed this process. Students are required to complete a FAFSA for each year of study.Returning students will be required to complete a renewal FAFSA.

2. Students taking out a Federal Direct Loan are required to complete a Master Promissory Note (MPN) annually. This will need to be E signed on the student loans website. The MPN is a legal document in which you promise to repay your loan and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan. You can complete your MPN at www.studentloans.gov

3. Loan entrance counselling. The U.S Department of Education requires first time borrowers to complete loan entrance counselling. You can complete this online at www.studentloans.gov

BOVTS recommends that you complete and submit the FAFSA by 2 May in order to allow us adequate time to process the loan and send your CAS statement. We will start processing loans from 2 May.

Once you have completed the steps above you will then need to send the information listed below to marchia.abokie@oldvic.ac.uk All of this information will be required before we can assess your loan eligibility.

Your completed cost of attendance spreadsheet.The template to calculate your COA can be found under the cost of attendance section below.

Pdf copy of Master Promissory Note (MPN). You can complete your MPN atwww.studentloans.gov

Entrance counselling completion. You can complete your entrance counselling atwww.studentloans.gov

If you are applying for PLUS loans please also attach:

Pdf copy of MPN for PLUS loan

Your e-mail of acceptance credit check

Once we have all the information above we can assess your loan eligibility. Once this has been done you will receive an award letter around the end of May with details of the maximum amount of government loan you are entitled to. You will be required to respond to this letter within two weeks confirming that you would like to borrow the maximum amount of loan eligible to you as detailed in your award letter

Once BOVTS has received this confirmation and, as long as you have an unconditional offer to study at BOVTS which you have firmly accepted, we will originate your loan and send you a visa letter which can be used as evidence of the amount of Direct Loan available to you when applying for your visa. (This will not replace your CAS statement which is still required for your visa application). Your CAS statement will be sent separately via email

Cost of Attendance

The cost of attendance (COA) is an estimate of your educational expenses for the academic year. The COA will specify the total amount you may borrow through U.S Title IV funds minus any other aid you may be receiving for that academic year such as scholarships.The standard cost of attendance is set by BOVTS; however you are able to adjust the cost of attendance to reflect specific needs individual to your circumstances but this should be in keeping within reasonable parameters.Students must complete a COA spreadsheet.

Disbursements

BOVTS does not issue Direct Loan funds directly to the student. BOVTS will receive the Direct Loan funds into their bank. The amount required for tuition fees for each student is automatically deducted where necessary and any remaining money for living expenses will then be paid to the student. Loans are disbursed in equal instalments as detailed below:

Undergraduate loans – are not currently available with BOVTS

Postgraduate loans will be disbursed three times over the academic year of study in October, January and April

Disbursement of Private Loans

A cheque will be received by the Admissions Office which will be co- payable to both the student and the University. The student will then be required to take the cheque to the Admissions Office at BOVTS where they will be required to endorse the cheque. Any money owed for tuition fees will then be deducted and the remainder of the loan will be paid to the student.

Loan Eligibility

Your eligibility for U.S. financial aid will be assessed based on the information you provide on your FAFSA

Dependent and Independent Undergraduate Status

Your dependency status is determined from information provided on the FAFSA. It affects the Expected Family Contribution (EFC) and types of aid that you may be eligible to receive.For the purposes of U.S. Financial Aid a student is considered independent if he or she meets one or more of the following criteria:

The student is at least 24 years old by December 31 of the award year.

The student is an orphan or ward/dependent of the court, or was a ward/dependent of the court until he or she reached age 13.

The student is a veteran of the U.S. Armed Forces. The student is working on a master’s or doctorate program

at the beginning of the award year for which the FAFSA is completed.

The student is married as of the date the FAFSA is completed. The student has at least one child who receives more than half

of his or her support from the student. The student has a dependent, other than a spouse or a child,

who lives with the student and receives more than half of his or her support from the student at the time the FAFSA is completed and through June 30 of the award year.

A student is considered dependent if he or she does not meet any of the preceding criteria for an independent student unless the Financial Aid Office determines that the student is independent on the basis of special circumstances and performs a dependency override.

To be eligible for a Federal Direct Loan students’ must:

Be a U.S citizen or eligible non-citizen with a valid social security number

Be registered for Selective Service (unless exempt) if male and aged between 18 -25

Be enrolled and continue to be enrolled at least half time on an eligible programme at BOVTS .If you suspend, withdraw or drop below half time enrolment you must e mail marchia.abokie@oldvic.ac.uk immediately

Make Satisfactory Academic Progress (SAP) Not be in default on an educational loan and must not

owe a repayment on a adjusted federal grant Complete the Free Application for Federal Student Aid

(FAFSA) each year Students’ loan eligibility will be reviewed

regularly throughout the academic year

Exit Counselling

Before beginning to repay your loan borrowers are required to complete online exit counselling. You are also required to complete exit counselling if you drop below half time or withdraw from the university. Exit counselling provides information about how to manage your student loan after completing your course including repayment methods, deferment and the consequences of defaulting.

You can complete exit counselling on the NSLDS website via www.nslds.ed.gov

Policies

BOVTS Satisfactory Academic Progress Policy

Introduction

In order to maintain eligibility for US Loans funding, all students who are in receipt of US Loans must make Satisfactory Academic Progress in their studies. Satisfactory Academic Progress (SAP) for US Loans students will be reviewed using two measures, qualitative and quantitative. You must meet both standards to continue receiving financial aid.

Satisfactory Academic Progress (Quantitative Assessment)

In line with all other students at Bristol Old Vic Theatre School (BOVTS), all students in receipt of US Loans must meet the minimum credit requirements for academic progression, as outlined in the School’s regulations.

Decisions relating to satisfactory academic progression are the responsibility of the relevant course leader and the module leaders’ meeting at the end of each term, and decisions are made in accordance with the University of the West of England regulations as published for each individual course handbook.

Quantitative assessment on all BOVTS MA programmes is evaluated by a combination of practical exams and coursework.

Satisfactory Academic Progress (Qualitative Assessment)

In addition to the quantitative assessment decision, which is taken by the relevant course tutor, a further assessment takes place for US Loans students, which considers whether sufficient progress is being made to enable the student to continue to receive Financial Aid. This assessment looks at the pace of progression for the individual student.

In order to make satisfactory academic progress, the minimum requirement for students in receipt of Title IV loans is to be registered for a minimum of 50% of the full-time hours for their programme of study, being the minimum acceptable level published by the US Education Department. However, as published in the course programme handbooks, BOVTS sets a much higher minimum attendance level. All timetabled classes and trips are compulsory, none is optional. Students are expected to fully engage in their studies and attend all classes as outlined in the programme of study.

The qualitative assessment for postgraduate students will be made following the Academic Board at the end of each term. The maximum time frame for a student to maintain eligibility for US Loans funding will not exceed 100% of the published length of the course.

The maximum time frame includes periods when the student is not in

receipt of funds and any period when a student is required to undergo reassessment. Periods when there has been a suspension in studies will not count towards this maximum time frame.

A student’s Satisfactory Academic Progress is therefore determined by a combination of course leader & module leaders’ meeting decisions and the pace of completion, which can be affected by deferment or withdrawals. PLEASE NOTE there are no provisions for a change in course.

Policy for Financial Aid Warning

Students who fail to achieve the required qualitative and quantitative standards will be placed on Financial Aid Warning for one payment period. Aid is disbursed during this period.

Important Information

Financial Aid Warnings are related solely to students’ eligibility to receive Federal Student Aid from the US Department of Education and will not affect your enrolment status.

Appeals ProcedureTo appeal the financial aid suspension, a student must, within 14 calendar days of notification, indicate in writing the reason(s) for failure to meet the necessary financial aid SAP requirements and why financial aid should not be suspended. Full documentation in support of the appeal is required at the time of the appeal submission. Disbursement of loan funding will not be made while an appeal is being progressed. An Appeals Panel, chaired by a senior member of academic staff will consider the appeal and render a decision, which will be conveyed in writing to the student within 14 calendar days of the student’s appeal.Appeals should be sent to: The PrincipalBristol Old Vic Theatre School1-3 Downside RoadCliftonBristol BS8 2XF

All appeal decisions are final. If a student’s appeal against funding suspension is successful, then the student’s good standing will be restored and the student will be placed on probation for the payment period. Students that fail SAP after a period of probation cannot receive aid unless they are successful in a further appeal and develop an academic plan approved by their tutor.

Refund and Return to Title IV Policy

Bristol Old Vic Theatre School (BOVTS) has a refund policy for international students attending this institution. The following is an addendum for students who are receiving U.S. Title IV financial aid.

For students receiving U.S. Title IV financial aid that withdraw from the school and are eligible for a refund of fees paid for that period of enrolment, a determination must be made as to whether any of the refund money must be returned to the U.S. Title IV programme.

Pro-rated refund calculations are required for any student in receipt of U.S Title IV aid who withdraws before completing 60% of the payment period.

If BOVTS is required to return money on your behalf to the U.S. Title IV programme as a result of your early withdrawal, you will be required to repay that money to BOVTS

If it is determined that refund money must be returned to the U.S. Title IV aid programme, the distribution of money returned to the lender/guarantor will be as follows:

1. Direct Unsubsidized (Stafford)2. Direct PLUS

After these calculations and repayments are made, any remaining refunds will be returned to you or your parents.

In addition, you may also be required to pay back money to the U.S. Title IV programme if you withdraw early from the school while in receipt of aid.

We strongly recommend you contact the Finance Director simon.payne@oldvic.ac.uk if you are considering early withdrawal to discuss your options and possible implications.

Leave of Absence

A Leave of Absence is a status in which the student is considered to be continuously enrolled for U.S. Title IV loan purposes, as approved by the university, but suspends studies for an agreed period of time due to extenuating circumstances, i.e., a car accident, medical illness.

An approved Leave of Absence is a break in enrolment (not including a standard break) that i s requested by the student and must be approved by the Financial Aid Office and relevant academic and institution staff. The student's request must be in writing and include the reason for the leave and any supporting documentation. In an approved Leave of Absence the student does not incur any additional charges and the enrolment status will remain as in- school. If approved, the student must return by the agreed date or the enrolment status will change to withdrawal effective from the last date of attendance before the leave of absence began. This withdrawal may have implications for grace and/or repayment obligations.

Students who wish to suspend studies for a period of time must first submit a request to the Financial Aid Officer for consideration before the desired start date of the Leave of Absence. If a Leave of Absence request is not submitted or approved, and the student ceases academic- related activity for a consistent period of time during the academic year this may be treated as an unofficial withdrawal from the institution for U.S. Title IV loan purposes and reported to y o u r loan holder(s). If you wish to apply for a leave of absence please email marchia.abokie@oldvic.ac.uk

Repayment options and obligations

Repayment Plans

Before repayment starts you will be provided with Repayment Options and a Repayment Schedule from your loan servicer(s) for each type of loan you have borrowed. If you do not receive these schedules towards the end of your grace period contact your servicer because repayment begins whether or not you are aware of it.

The repayment process will go smoothly if you plan ahead. Start by knowing all your options. Repayment options you may choose include:

Standard Repayment: under this plan your monthly payment will remain the same over the entire repayment period. This repayment plan is the most economical with the least amount of interest accruing over the term of the loan. The term is for a maximum of 10 years. You will be automatically placed on this repayment plan if you do not apply for a different one.

Graduated Repayment: this plan begins with smaller payments followed by a gradual increase in payments at specified intervals. Under this plan you may pay more interest over the term of the loan. The term is for a maximum of 10 years.

Income-Sensitive Repayment (FFEL loans only): this plan ties the size of your repayment to your income level with annual adjustments made to your repayment. The monthly repayment must be large enough to cover accrued interest. This plan also may increase the amount of interest you pay over the term of your loan. The term is up to 10 years.

Extended Repayment: this option is available for those who first borrowed on or a f t e r October 7, 1998 and who accumulated loans that totaled more than US$30,000. If you are one of these borrowers you may extend your Standard or Graduated Repayment Plan for up to a maximum of 25 years.

Income Based Repayment (IBR): Under IBR, the required monthly payment is capped at an amount meant to be affordable based on the borrower’s income and family size. If you repay under the IBR plan for 25 years and meet other requirements, you may have any remaining balance of your loan(s) cancelled. Additionally, if you work in public service and have reduced loan payments through IBR, the remaining balance after ten years in a public service job could be cancelled. For more important information about IBR go to www.studentloans.gov and click on Repayment Plans & Calculators.

Income Contingent Repayment (ICR) (Direct Loans Only): Under ICR your monthly payments will be calculated each year on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:

1. The amount you would pay if you repaid your loan in

12 years multiplied by an income percentage factor that varies with your annual income, or

2. 20 percent of your monthly discretionary income.

As of July 1, 2009, graduate and professional student Direct PLUS Loan borrowers are eligible to use the ICR plan. Parent Direct PLUS Loan borrowers are not eligible for the ICR repayment plan. For more important information about ICR go to www.studentloans.gov and click on Repayment Plans & Calculators.

Repayment Tools

When repaying your student loans, it is important to know the choices available to you—and their differences.

Loan Consolidation

When you leave university you may have a number of loans. These loans may be with more than one lender and may have different terms. Repayment can become complicated if you have to make different payments at different times of the month. Consolidation is a way to make repayment of multiple loans less complicated.

You can consolidate all your federal student loans into one loan with a fixed rate and a single, lower monthly payment. You pay no additional fees to consolidate your loans. More importantly, you may reduce the amount of each monthly payment by extending your repayment term. Always remember that a longer repayment term increases the amount of interest you pay over the term of your loan.

Consolidation loans range from 10 to 30 years. Repayment options on consolidation loans include: Standard, Graduated, Income Sensitive, Income Based, and IncomeContingent repayment plans. To be eligible for a consolidation loan, you must be in a grace period, repayment, deferment, or forbearance. As of July 1, 2006 students are not allowed to consolidate whilst they are in-school.

It is important to research loan consolidation carefully as you may lose some borrower benefits offered by your original lender. If you are uncertain of your loan amounts (principle and interest) and who owns your loans, you can track down your loans online at the National Student Loan Data System.

The interest rate on a consolidated loan is determined by taking the weighted average of your current loans interest rates and rounding up to the nearest 1/8%. This interest rate is fixed, which means it will not change throughout the life of the loan, whereas your current loans may be variable and can either increase or decrease on an annual basis.You should discuss consolidation with your current loan holder(s). If your loan holder does not consolidate they may be able to recommend another one who does.

Consolidation Loan Terms:

Loan Term Amount Owed10 years Less than $7,50012 years $7,500 to $9,99915 years $10,000 to $19,99920 years $20,000 to $39,99925 years $40,000 to $59,99930 years $60,000 or more

Deferment - postponing repayment

One advantage of borrowing through U.S. Title IV loan programme is the option of postponing repayment for a period of time under certain conditions. However, it is important to note how interest must be paid or not paid on various loans:

Subsidized Stafford Loans: interest is paid by the US government while you are in-school, during grace, and authorized deferment periods.

Unsubsidized Stafford Loans and PLUS loans: the borrower is responsible for paying the interest that accrues while in-school, during applicable grace and authorized deferment periods.

You must continue making repayments until you have been notified that a deferment is granted. Keep copies of all forms and correspondence related to your deferment. Common reasons for deferment include

Economic hardship Unemployment Enrolment in school Graduate fellowship Rehabilitation training Military Service

For more information can be found via www.studentloans.gov

Forbearance - postponing repayment

Borrowers in temporary financial difficulty with no deferment option available may request forbearance from your lender or servicer. Forbearance is granted at the loan holder’s discretion and allows you to have months added to the term of your loan, temporarily reduce the amount of your monthly payment or temporarily suspend monthly payments.

There are several forbearance options available, but the two most common types are:

Economic Hardship Forbearance: If your education loan payments exceed 20% of your total monthly income you can apply for this type of forbearance. It is given in 12-month

increments for a maximum of three years.

Administrative Forbearance: May be granted by your lender if you are delinquent on payments prior to entering a period of deferment.

Note that interest continues to accrue on your loan during forbearance. Interest must be repaid, which can result in higher monthly payments once the forbearance has ended. The federal government does not pay the interest on Stafford subsidized loans while your loans are in forbearance.

For more information can be found via www.studentloans.gov

Delinquency and Default

When your monthly payment is 30 days or more overdue you are considered delinquent. Most loan holders will contact you about delinquent payments and begin collection activity.Delinquency may be reported to a Credit Bureau which may damage your credit rating.

If you expect to have a problem making a monthly payment, contact your loan holder immediately. It is always easier to discuss alternatives before the due date rather than after a payment is late. To find your loan holder visit: https://www.nslds.ed.gov/nslds_SA/

Borrowers who are 270 days behind on a scheduled payment are legally in default on the loan agreement. The loan holder can assume that you are not going to repay and may declare the entire amount you owe, including interest, as immediately due and payable. Defaults are reported to Credit Bureaus and stay on your credit record whether or not you eventually pay off the loan.

CONSEQUENCES OF DEFAULT ARE SEVERE

Borrowers are liable for late charges which can be added to the principal of the loan and interest will accrue.

US federal income tax refunds may be withheld to repay the loan. Wages may be garnished (a portion withheld for repayment). Payment of attorney fees and court costs may be required. Borrowers may lose eligibility for all federal and state

financial aid until satisfactory repayment arrangements are made for the defaulted loan.

In a profession that requires a license to practice, that license can be denied renewal until you make satisfactory payment arrangements on your student loan.

Student Debt on Graduation

Students attending BOVTS have a variety of differing educational experiences, and the debt levels of each student reflect individual choices and knowledge about the usage of the loan programme options.

We are committed to ensuring that students leave this institution with the lowest amount of debt possible and we will actively work with you to ensure this. Throughout your life cycle as a student utilizing U.S. financial aid we will be actively tracking your debt and benchmarking it with others who have studied in the same method and course as you.

Average Indebtedness Statistics will be provided to students on completion of both entrance and exit counselling and upon the request of an enrolled student.

Contact us

Any queries regarding Direct Federal Loans can

be sent to: Email: marchia.abokie@vic.ac.uk

Bristol Old Vic Theatre School1-2 Downside RoadCliftonBristolBS8 2XF

U.S. Title IV Glossary

Accrued InterestThe interest accumulating on loans that is added to the principal loan amount at the time of repayment (if no interest payments are made while in university, in grace, or during an authorized period of deferment.)

Award LetterAn official letter issued by the Financial Aid Officer at BOVTS. The letter details the financial aid package for the relevant award year.

Award YearThe period of time for which your financial aid package has been awarded.

CapitalizationThe process by which interest is added to the principal loan amount if you choose not to make interest payments while in university, grace or in forbearance (See Section C, Item 14 on the Direct Loan Master Promissory Note). This process increases the amount that must be repaid and will increase your monthly repayment.

Cost of Attendance (COA)These expenses include tuition, living, books, insurance, travel and transportation for you, the student borrower, for the award year. The COA is determined by the Financial Aid <title> in accordance with the U.S. federal guidelines.

Cohort Default RateThe percentage of BOVTS’s students who borrowed money under the U.S. FFEL programme and defaulted on their loans. The U.S.

Department of Education calculates this rate annually to determine the default experience of students who attended a particular school during a particular period of time.

DefaultThe failure of a borrower to make instalment payments when due for 270 days for monthly payments, (330 days for payments due less frequently than monthly), or to meet other terms of the promissory note or other written agreement(s) with the loan holder. Under these circumstances the U.S. Department of Education or loan servicer may reasonably conclude that the borrower no longer intends to honour the borrower’s obligation to repay a loan, and will take appropriate action.

DefermentA period during which repaying loan principle is suspended as a result of the borrower meeting one or more of a number of situations or categories established by U.S. law. The borrower does not pay interest on Direct subsidized loans during deferment; interestcontinues to accumulate during deferment of a Direct unsubsidized, Direct PLUS, or private loan.

DelinquencyThe loan status when payment is late. Delinquency may be reported to a credit bureau after 30 days.

Direct Loan (Subsidized)A U.S. federal program that provides federally subsidized, low interest loans to students in undergraduate programs. The U.S. government pays the interest on subsidized loans while the borrower is enrolled at least half time, in grace (except for loans disbursed between July 1, 2012 and July 1, 2014) or in an authorized deferment. They are awarded on the basis of financial need as determined by the FAFSA.

Direct Loan (Unsubsidized)A U.S. federal program that provides low interest loans to students in undergraduate, graduate or professional programs. Unsubsidized loans are not awarded on the basis of financial need.

DisbursementThe payment of loan funds to the institution, i.e., the day the Department of Education issues the funds. Disbursement is usually made in two or more instalments during the year in accordance with U.S. Department of Education regulations.

Expected Financial Assistance (EFA)The Expected Financial Assistance is the amount of all other awards, loans, scholarships, sponsorships/grants, etc. that a student (or the parents on behalf of the student) may receive.

Expected Family Contribution (EFC)The Expected Family Contribution is the amount that a student and family (if required) are expected to contribute toward the cost of attendance. This amount is based on the students or the family’s income and assets as calculated by the FAFSA (Free Application Form Student Aid) and is used in the calculation of a student’s eligibility for

subsidized loans. Note: Students and/or their parents may borrow this amount when necessary.

Financial Aid OfficerFinancial Aid Office staff member who is responsible for managing the Federal Loan process, compliance and administration. The Financial Aid title also certifies or approves your federal loan application and the amount you can borrow; in the U.S. this official would be known as the Financial Aid Director.

Financial NeedThe difference between the Cost of Attendance and the Expected Family Contribution plus Estimated Financial Assistance.

ForbearanceA suspension or temporary reduction of monthly payments. You must contact your loan holders(s) directly to receive forbearance. Interest will continue to accrue on all loans, including Direct subsidized, during a period of forbearance.

Free Application for Federal Student Aid (FAFSA)This is the U.S. federal application that a student must file to apply for financial aid. The FAFSA is available online.

Grace PeriodA period of six months after you leave the institution or drop below half-time before you must start monthly repayments on your Direct subsidized and unsubsidized loan(s).

Graduate Direct PLUS LoanGraduate students may borrow this federal loan on their own behalf to cover the difference between the cost of attendance and all other awarded aid, after applying for other Direct loan aid.

InterestThe fee charged by the loan holder in exchange for lending the money. The interest rate, usually expressed as a percentage of the loan amount, may stay the same for the term of the loan (fixed rate) or it may change periodically (variable rate).

Interest Rates for Loans First Disbursed on or after July 1, 2010; different rates apply for loans disbursed prior to this date; see http://www.asa.org/basics/loans/types/default.aspxLoan Type InterestSubsidized Loans Undergrad:

3.40Unsubsidized Loans 6.80

6.80PLUS Loans 7.90

Generally, interest rates on Consolidation Loans are fixed rates calculated as the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25%.

Loan FeeA fee charged by the Federal Government and deducted from the loan funds prior to disbursement. The fee is used to offset administrative costs. For Direct Subsidized and Unsubsidized Loans disbursed after July 1, 2010, the fee is 1%. For Direct PLUS Loans the

fee is 4%.

Master Promissory Note (MPN)A legally binding document between the borrower and the Department of Education that obligates the borrower to repay the loan in accordance with its terms.

Parent Direct PLUS LoanA federal loan available to the parents of dependent, undergraduate students. While parents of all income levels are eligible, a credit-worthiness evaluation is carried out.Principal

The amount borrowed. This is the amount on which interest is charged.Student Aid Report (SAR)/Institutional Student Individual Report (ISIR)

The report sent directly to a student from the U.S. Department of Education’s Central Processing System (CPS) that summarizes information submitted on your FAFSA. It also provides figures used in financial need calculations, including the student’s estimated family contribution (EFC). The ISIR is the electronic version forwarded to the university.Satisfactory Academic Progress (SAP)

Achieving the required Grade Point Average (GPA) within the defined timeframes to ensure continued access to financial aid.

ServicerA Servicer is a company contracted by the U.S. Department of Education to handle administrative aspects of the loan such as collection of payments, correspondence with borrowers, address changes, loan status updates. It is important to know the name of your Servicer since quite often all communication regarding your loan will be with the Servicer.