Glossary of Student Loan Related Terms

FAA

Financial Aid Administrator

FAF

Financial Aid Form

FAFSA

Free Application for Federal Student Aid

FAO

Financial Aid Office

FAS

Financial Aid System

FAT

Financial Aid Transcript

FDLP

Federal Direct Loan Program (The William D. Form Federal Direct Loan Program through selected colleges and universities)

FDSLP

Federal Direct Student Loan Program

Federal Direct Student Loan Program (FDSLP)

Similar to the Federal Family Education Loan Program (FFELP). The funds for these loans are provided by the US government directly to students and their parents through their schools. Benefits of the program include faster turn-around time and less bureaucracy than the old "bank loan" program. The FDSLP includes the Federal Direct Stafford Loan (Subsidized and Unsubsidized) and the Federal Direct Parent Loan for Undergraduate Students (PLUS).

Federal Family Education Loan Program (FFELP)

Includes the Federal Stafford Loan (Subsidized and Unsubsidized), the Federal Perkins Loan, and the Parent Loan for Undergraduate Students (PLUS). The funds for these loans are provide by private lenders, such as banks, credit unions, and savings and loan associations. These loans are guaranteed against default by the federal government.

Federal Loan

A loan guaranteed by the federal government.

Federal Methodology

The needs analysis formula used to determine the EFC. The Federal Methodology takes family size, the number of family members in college, taxable and nontaxable income, and assets into account. Unlike most institutional methodologies, however, the Federal Methodology does not consider the net value of the family residence.

Federal PLUS Loan Program

The Federal PLUS Loan Program (Parent Loan for Undergraduate Students) is a loan for parents of students. They are made available to parents of full-time or half-time dependent undergraduate students. Eligibility is determined by the Financial Aid Administrator, and the amount borrowed may not exceed the cost of education less any other aid received. This loan can be used to pay the Expected Family Contribution.

Federal Processor

The organization that processes the information submitted on the Free Application for Federal Student Aid (FAFSA) and uses it to compute eligibility for federal student aid. There are two different federal processors serving specific geographic regions.

Federal Stafford Loan

A low-interest federally guaranteed loan for students. Stafford Loans are either subsidized (need-based) or unsubsidized (non-need-based). The government pays the interest on a subsidized loan while a student is in school plus a six-month grace period after leaving school. Interest accrues on unsubsidized Stafford Loans from the disbursement date. A student can receive a subsidized loan and an unsubsidized loan for the same enrollment period.

Federal Supplemental Educational Opportunity Grant (FSEOG)

A grant for undergraduates with exceptional financial need. Federal Pell Grants recipients often get priority for a FSEOG, which has no repayment requirement.

Federal Work-Study (FWS)

Program providing undergraduate and graduate students with part-time employment during the school year. The federal government pays a portion of the student's salary, making it cheaper for departments and businesses to hire the student. For this reason, work-study students often find it easier to get a part-time job. Eligibility for FWS is based on need. Money earned from a FWS job is not counted as income for the subsequent year's need analysis process.

Fees

A charge associated with the processing of a loan. Most loans have one or more fees, such as guarantee, origination, and insurance of application fees. These fees are usually deducted from the amount you borrow before the loan is disbursed. Some loan fees can be borrowed in addition to the approved loan amount. Note: Interest on a loan accrues on the total amount - principal paid to you or your school, plus any fees.

Fellowship

A form of aid given to graduate students to help support their education. Some fellowships include a tuition waiver or a payment to the university in lieu of tuition. Most fellowships include a stipend to cover reasonable living expenses (e.g., just above the poverty line). Fellowships are a form of gift aid and do not have to be repaid.

FFELP

Federal Family Education Loan Program

Financial Aid

Money provided to the student and the family to help them pay for the student's education. Major forms of financial aid include gift aid (grants and scholarships) and self-help aid (loans and work).

Financial Aid Administrator (FAA)

A college or university employee who is involved in the administration of financial aid. Some schools call FAAs "Financial Aid Advisors" or "Financial Aid Counselors."

Financial Aid Form (FAF)

The old name for the Financial Aid PROFILE. The Financial Aid PROFILE is a supplemental financial aid form processed by the College Scholarship Service (CSS). It is not necessary to file a Financial Aid PROFILE in order to apply for federal student financial aid; the FAFSA is sufficient. The Financial Aid PROFILE is used by many private colleges and universities for awarding institutional funds.

Financial Aid Notification (FAN)

An official document issued by a school's financial aid office that lists all of the financial aid awarded to the student. This letter provides details on their analysis of your financial need and the breakdown of your financial aid package according to amount, source and type of aid. The award letter will include the terms and conditions for the financial aid and information about the cost of attendance. You are required to sign a copy of the letter, indicating whether you accept or decline each source of aid and return it to the financial aid office. Some schools call the award letter the "Financial Aid Notification (FAN)."

Financial Aid Office (FAO)

The college or university office that is responsible for the determination of financial need and the awarding of financial aid.

Financial Aid Package

The complete collection of grants, scholarships, loans and work-study employment from all sources (federal, state, institution and private) offered to a student to enable them to attend the college or university. Note that unsubsidized Stafford loans and PLUS loans are not considered part of the financial aid package, since these financing options are available to the family to help them meet the EFC. 

Financial Aid Transcript (FAT)

A record of all federal aid received by the student at each school attended. If you have previously attended an institution of higher education and are now applying for financial aid from a different university, the university will require a FAT from each of the schools previously attended, regardless of whether aid was received or not. They are required to do this by federal law. You have to submit a FAT even if you were in high school at the time. An electronic FAT process will be in place soon which will eliminate the need for the student to submit a FAT. The FAT is not the same as an academic transcript.

Financial Need

The Cost of Attendance (COA) minus the Expected Family Contribution (EFC).

Financial Safety School

A school you are certain will admit you, and which is inexpensive enough that you can afford to attend even if you get no (or very little) financial aid.

First-Time Borrower

A first-year undergraduate student who has no unpaid loan balances outstanding on the date he or she signs a promissory note for an educational loan. First-time borrowers may be subjected to a delay in the disbursement of the loan funds. The first loan payment is disbursed 30 days after the first day of the enrollment period. If the student withdraws during the first 30 days of classes, the loan is cancelled and does not need to be repaid. Borrowers with existing loan balances aren't subject to this delay.

FISL

Federally Insured Student Loans (previous loan type)

Fixed Interest

In a fixed interest loan, the interest rate stays the same for the life of the loan.

Florida Dept. of ED, Office of Student Financial Assistance

A guarantor of federal loans in Florida.

FM?

Federal Methodology

Forbearance

During a forbearance, the lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. The borrower must continue paying the interest charges during the forbearance period. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. You can't receive a forbearance if your loan is in default.

Free Application for Federal Student Aid (FAFSA)

Form used to apply for Pell Grants and all other need-based aid. As the name suggests, no fee is charged to file a FAFSA.

FSEOG

Federal Supplemental Educational Opportunity Grant

FSL

Federal Stafford Loan - Subsidized (Also see Stafford)

FSLU

Federal Stafford Loan - Unsubsidized (Also see Stafford)

Full Time (FT)

A period of time generally defined as a minimum of 12 semester hours per academic term or 24-clock-hours attendance.

Funds

Any moneys (including checks, drafts, or other instruments) or any commitment to provide money under the guarantor's programs to a borrower enrolled at (or accepted for enrollment) and attending a participating school.

FWS

Federal Work-Study