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Below are some of the terms you may encounter during the DLP application process.

Appeal - A formal request to have a financial aid administrator review your aid eligibility and possibly use Professional Judgment to adjust the figures. For example, if you believe the financial information on your financial aid application does not reflect your family's current ability to pay (e.g., because of death of a parent, unemployment or other unusual circumstances). The financial aid administrator may require documentation of the special circumstances or of other information listed on your financial aid application.

Award Letter - 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.

Award Year - The academic year for which financial aid is requested (or received).

Collection Agency - A company often hired by the lender or loan servicer to recover defaulted loans.

Consolidation Loan - (Also called Loan Consolidation) A loan that combines several student loans into one bigger loan from a single lender. The consolidation loan is used to pay off the balances on the other loans.

Cost of Attendance (COA) - (Also known as the cost of education or "budget") The total amount it should cost the student to go to school, including tuition and fees, room and board, allowances for books and supplies, transportation, and personal and incidental expenses. Loan fees, if applicable, may also be included in the COA.

Credit Rating - An evaluation of the likelihood of a borrower to default on a loan. Credit bureaus and credit reporting agencies provide this information to banks and businesses to help them decide whether to issue a loan or extend credit. Your credit rating may include your payment history, a list of current and past credit accounts and their balances, employment and personal information and a history of past credit problems.

Default - A loan is in default when the borrower fails to pay several regular instalments on time or otherwise fails to meet the terms and conditions of the loan. If you default on a loan, the university, the holder of the loan, the state government and the federal government can take legal action to recover the money, including garnishing your wages and withholding income tax refunds. Defaulting on a government loan will make you ineligible for future federal financial aid, unless a satisfactory repayment schedule is arranged, and can affect your credit rating.

Deferment - Occurs when a borrower is allowed to postpone repaying the loan. If you have a subsidized loan, the federal government pays the interest charges during the deferment period. If you have an unsubsidized loan, you are responsible for the interest that accrues during the deferment period. You can still postpone paying the interest charges by capitalizing the interest, which increases the size of the loan.

Delinquent - If the borrower fails to make a payment on time, the borrower is considered delinquent and late fees may be charged. If the borrower misses several payments, the loan goes into default.

Dependency Status - Determines to what degree a student has access to parent financial resources.

Direct Loan Program (DLP) - Includes the Federal Subsidized and Unsubsidized Loans, the Graduate PLUS Loan and the Parent/family Loan for Undergraduate Students (PLUS).

Disbursement - The release of loan funds to the school for delivery to the borrower. The payment will be electronically to the school. Loan funds are first credited to the student's account for payment of tuition, fees, room and board and other school charges. Any excess funds are then paid to the student in cash or by check.

Due Diligence - If a borrower fails to make payments on their loan according to the terms of the promissory note, the federal government requires the lender, holder or servicer of the loan to make frequent attempts to contact the borrower (via telephone and mail) to encourage him or her to repay the loan and make arrangements to resolve the delinquency.

Eligible Non-Citizen - Someone who is not a US citizen but is nevertheless eligible for Federal student aid. Eligible non-citizens include US permanent residents who are holders of valid green cards, US nationals, holders of form I-94 who have been granted refugee or asylum status and certain other non-citizens. Non-citizens who hold a student visa or an exchange visitor visa are not eligible for Federal student aid.

Enrolment Status - An indication of whether you are a full-time or part-time student. Generally you must be enrolled at least half-time (and in some cases full-time) to qualify for financial aid.

Expected Family Contribution (EFC) - The amount of money that the family is expected to be able to contribute to the student's education, as determined by the Federal Methodology need analysis formula approved by Congress. The EFC includes the parent contribution and the student contribution, and depends on the student's dependency status, family size, number of family members in school, taxable and nontaxable income and assets. The difference between the COA and the EFC is the student's financial need, and is used in determining the student's eligibility for need-based financial aid. If you have unusual financial circumstances (such as high medical expenses, loss of employment or death of a parent) that may affect your ability to pay for your education, tell your financial aid administrator (FAA). He or she can adjust the COA or EFC to compensate.

Federal School Code - When you fill out the FAFSA you need to supply the Title IV Code for each school to which you are applying. For Macquarie University, this is G10681.

Free Application for Federal Student Aid (FAFSA) – is an online organized method of gathering information about you and your family’s financial situation. This information is then analyzed according to US federal guidelines. On completion of the FAFSA, you will receive a Student Aid Report (SAR).

Financial Aid Administrator (FAA) - A college or university employee who administers the financial aid programs.

Financial Aid Director (FAD) - A college or university employee who oversees the financial aid operation at the School, and is registered at the US Department of Education. FA Administrators report directly to the FAD.

Financial Aid Probation is a status placed on one study period for a student who receives Financial Aid Suspension, and subsequently submits a successful appeal to be allowed to utilize the Direct Loans. Failure to meet the minimum SAP requirements (or the conditions imposed by the Financial Aid Director) during the probation period, will result in the student’s Financial Aid Suspension in the subsequent study periods without any further possibility to appeal.

Financial Aid Suspension happens when a student loses US financial aid eligibility due to unsatisfactory academic progress (as specified under the SAP policy) at the end of the Warning study period (see Financial Aid Warning)

Financial Aid Warning is a status placed on a study period for students who fail to achieve the required Cumulative GPA and/or Pace ratios, commensurate with the longevity of their degree program, and their academic level within that degree structure in the previous study period.

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 canceled and does not need to be repaid. Borrowers with existing loan balances aren't subject to this delay.

Grace Period - A short time period after graduation during which the borrower is not required to begin repaying his or her student loans. The grace period may also kick in if the borrower leaves school for a reason other than graduation or drops below half-time enrollment. Depending on the type of loan, you will have a grace period of six months (Subsidized/Unsubsidized Loans) or nine months (Perkins Loans) before you must start making payments on your student loans. The PLUS Loans do not have a grace period.

Half-Time - Most financial aid programs require that the student be enrolled at least half-time to be eligible for aid. Some programs require the student to be enrolled full-time.

Independent - An independent student is at least 24 years old as of January 1 of the academic year, is married, is a graduate or professional student, has a legal dependent other than a spouse, is a veteran of the US Armed Forces, or is an orphan or ward of the court (or was a ward of the court until age 18). A parent refusing to provide support for their child's education is not sufficient for the child to be declared independent.

Interest - Amount charged to the borrower for the privilege of using the lender's money. Interest is usually calculated as a percentage of the principal balance of the loan. The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan.

Loan - A type of financial aid which must be repaid, with interest. The federal student loan programs (DLP) are a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates and may not require a credit check or collateral.

Loan Interviews - Students with educational loans are required to take a counseling session before they receive their first loan disbursement and again before they graduate or otherwise leave school. During these counseling sessions, called entrance and exit interviews, the FAA reviews the repayment terms of the loan and the repayment schedule with the student.

Need - The difference between the COA and the EFC is the student's financial need -- the gap between the cost of attending the school and the student's resources. The financial aid package is based on the amount of financial need. The process of determining a student's need is known as need analysis. (COA – EFC = Financial Need)

OPE Identification Code – During the loan application process, you may need to supply the OPE ID Code for each school to which you are applying. For Macquarie University, this is 01068100.

Origination Fee - A small percentage of the loan that is basically the loan fee.

Private Loans - Education loan programs established by private lenders to supplement the student and parent education loan programs available from federal and state governments.

Master Promissory Note - The binding legal document that must be signed by the student borrower before loan funds are disbursed by the lender. The promissory note states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy and cancellations. The student should keep this document until the loan has been repaid.

Selective Service - Registration for the military draft. Male students who are US citizens and have reached the age of 18 and were born after December 31, 1959 must be registered with Selective Service to be eligible for federal financial aid. If the student did not register and is past the age of doing so (18-25), and the school determines that the failure to register was knowing and willful, the student is ineligible for all federal student financial aid programs. The school's decision as to whether the failure to register was willful is not subject to appeal. Students needing help resolving problems concerning their Selective Service registration should call 1-847-688-6888.

Subsidized/Unsubsidized Loans - Federal loans that come in two forms, subsidized and unsubsidized. Subsidized loans are based on need; unsubsidized loans aren't. The interest on the subsidized Stafford Loan is paid by the federal government while the student is in school and during the 6 month grace period. The Unsubsidized Stafford Loan may be used to pay the EFC.

Student Aid Report (SAR) - Report that summarizes the information included in the FAFSA and must be provided to your school's FAO. The SAR will also indicate the amount of Pell Grant eligibility, if any, and the Expected Family Contribution (EFC). You should receive a copy of your SAR four to six weeks after you file your FAFSA. Review your SAR and correct any errors on part 2 of the SAR. Keep a photocopy of the SAR for your records. To request a duplicate copy of your SAR, call +1-800-4-FED-AID (+1-800-433-3243) or +1-319-337-5665.

Title IV Loans - Title IV of the Higher Education Act of 1965 created several education loan programs. One of this can be administered by an approved foreign school, namely the Direct Loan Program (DLP). These loans, also called Title IV Loans, which include the Federal Subsidized and Unsubsidized Loans, Federal PLUS Loans and Federal Consolidation Loans.

US Department of Education (ED or US-ED) - Government agency that administers several federal student financial aid programs, including the Federal Direct Loans, Federal Pell Grant, the Federal Work-Study Program, the Federal Perkins Loans, the Federal Stafford Loans (ceased effective from July 1, 2010).

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