The Financial Aid Office here at North American University provides publications, fact sheets, online tools, and other resources to help you prepare and pay for your education. Below, you can find our Federal Student Aid Handouts and Brochures, Commonly Used Terms, Financial Aid Eligibility Requirements, and Helpful Video Resources
Federal Student Aid Handouts and Brochures
Be a responsible Borrower
Commonly Used Terms
A period of time schools use to measure a period of study. Contact your financial aid office for information on how your school defines Academic Year.
Demand for immediate repayment of your entire federal student loan. The entire unpaid amount of your federal student loan becomes due and payable if you:
- Receive loan money, but don’t enroll at least half-time at the school that determined you were eligible to receive the federal student loan;
- Use your loan money to pay for anything other than expenses related to your education at the school that determined you were eligible to receive the federal student loan;
- Make a false statement that causes you to receive a federal student loan that you’re not eligible to receive; or
- Default on your federal student loan
To accumulate interest on a loan.
Adjusted Gross Income is an individual (or couple’s) total taxable income minus specific reductions. You can find your Adjusted Gross Income on your most recently filed IRS Form 1040, 1040A, or 1040EZ, or by requesting a tax return transcript online
A limit on the total amount of subsidized and/or unsubsidized loans that you may borrow for undergraduate and graduate study. If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you’re not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.
A limit on the total amount of subsidized and/or unsubsidized loans that you may borrow for undergraduate and graduate study. If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you’re not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.
The alien registration number or “A-number” is an identifying number that U.S. Citizenship and Immigration Services (USCIS) assigns to certain non-citizens. A-numbers may consist of 8 or 9 digits. The A-number is yours for life, much like a Social Security Number. The A-number may be found on your green card.
The maximum federal student loan eligibility per academic year. These amounts vary by type of loan and grade level. Your school will tell you how much you’re eligible to receive each academic year. Specific amounts can be found at www.studentloans.gov.
The actual yearly cost of borrowing money reflected as a percentage rate.
A letter from your school that details your federal, state, institutional and private student financial aid.
Includes reasonable amounts, as determined by your school.
The individual who signed and agreed to the terms in the promissory note and is responsible for repaying a loan.
Unpaid interest that has been added to the principal balance of a federal student loan. Future interest is charged on the increased principal balance and this may increase your monthly payment amount and the total amount you repay over the life of the federal student loan.Unpaid interest that has been added to the principal balance of a federal student loan. Future interest is charged on the increased principal balance and this may increase your monthly payment amount and the total amount you repay over the life of the federal student loan.
The total cost to attend school for the academic year, as determined by your school.
Failure to repay a loan according to the terms agreed to. For the FFEL and Direct Loan programs, your loan is in default if you fail to make a payment for 270 days, if you repay monthly (or 330 days, if your payments are due less frequently). Your lender is required to report the default to at least one national credit bureau.
A benefit of federal student loans that allows you to temporarily stop making payments. You’re not generally charged interest on subsidized loans during deferment. Interest will continue to be charged on your unsubsidized loans and PLUS loans.
The cost of care during periods that include but aren’t limited to class time, study time, field work, internships, and commuting time for the student.
See William D. Ford Federal Direct Loan (Direct Loan) Program.
A portion of a federal student loan that the school pays out by applying the funds to the student’s school account or by paying the borrower directly. Students generally receive their federal student loans in more than one disbursement.
Someone who does not have an adverse credit history and agrees to repay the federal student loan if you don’t.
An identifying number associated to a Direct PLUS Loan Request. Used by an endorser when completing a Direct PLUS Loan endorser addendum for a specific loan.
Your Expected Family Contribution (EFC) is the number that’s used to determine your eligibility for federal student aid. This number results from the financial information you provided in your FAFSA® application. Your EFC is reported to you on your Student Aid Report (SAR).
Free Application for Federal Student Aid. The FAFSA® is a form that must be completed annually to help determine your eligibility for federal student aid. For more information, or to complete a FAFSA® online for free, visit FAFSA® on the Web.
Family size always includes you and your children (including unborn children who will be born during the year for which you certify your family size), if the children will receive more than half their support from you.
Support includes: money, gifts, loans, housing, food, clothes, car, medical and dental care, and payment of college costs. For the purposes of these repayment plans, your family size may be different from the number of exemptions you claim on your federal income tax return.
A document issued by a court that legally ends a marriage and sets forth the terms and conditions of the divorce.
The types and amounts of financial aid (federal and nonfederal) a student is offered by the school to help pay educational costs.
The cost of attendance minus your expected family contribution.
A benefit of federal student loans that allows you to temporarily stop making payments or reduce your federal student loans’ monthly payment. Interest will continue to be charged on your subsidized, unsubsidized and PLUS loans. Some forbearances are required to be granted by your federal loan servicer; others are offered only at the discretion of your federal loan servicer.
An FSA ID consists of a username (or verified e-mail address) and password which gives you access to Federal Student Aid’s online systems and can serve as your legal signature.
A period of time that generally begins on the day after a borrower graduates, leaves school, or drops below half-time enrollment and usually ends six to nine months later. A borrower is not required to make payments during the grace period. Grace periods occur for:
- subsidized and unsubsidized loans made under the Direct Loan and FFEL programs (six-month grace period); and
- loans made under the Perkins loan program (generally nine-month grace period).
Student grants are monetary gifts to people who are pursuing higher education. Unlike student loans, grants don’t require repayment.
The minimum hours or credit hours you need to be enrolled to be eligible for a federal student loan. For information on half-time enrollment at your school contact your school’s financial aid office.
An entity that holds your loan promissory note and has the right to collect from you. Many banks sell loans, so the initial lender and the current holder could be different. The holder(s) of your Direct Loans is the U.S. Department of Education (the Department).
The holder of your FFEL Program loan(s) may be a lender, secondary market, guaranty agency, or the Department. Your loan holder(s) may use a servicer to handle billing, payment, repayment options, and other communications on your loans.
The percentage charged when you borrow money. See also Annual Percentage Rate (APR).
The IRS Data Retrieval tool is an easy and secure way to access and transfer tax return information directly onto the electronic Income-Driven Repayment Plan Request, saving time and improving accuracy.
If you don’t use the IRS Data Retrieval Tool to provide tax information, you must provide your servicer(s) with a copy of your tax return or obtain an official tax transcript from the IRS.
Money that you borrow and must repay.
Loan discharge is the removal of a borrower’s obligation to repay a loan when the loan is still outstanding. Loan discharge is granted on federal student loans only in limited circumstances.
A fee charged for each federal student loan you receive that is a percentage of the total loan amount you’re borrowing (gross amount). The loan fee is deducted proportionately from each disbursement of your loan.
This reduces the actual loan amount you receive (net amount). The specific loan fee that you’re charged will be included in a disclosure statement you’ll receive after the first disbursement of your federal student loan. You will be required to repay the gross amount.
Loan forgiveness is the removal of a borrower’s obligation to repay a loan when the loan is still outstanding. Loan forgiveness is granted on federal student loans only in limited circumstances.
Temporary or permanent restructure of a loan.
The portion of the academic year that the loan is requested for.
An identifying number associated to a Direct PLUS Loan Request. Used by an endorser when completing a Direct PLUS Loan endorser addendum for a specific loan.
An entity that collects payments on a federal student loan, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a federal student loan on behalf of a loan holder. A federal loan servicer is a loan servicer for the U.S. Department of Education. If you have a Direct Loan, you’ll be assigned a federal loan servicer.
Direct Loan borrowers are assigned a federal loan servicer after the first disbursement of their loan. Your federal loan servicer will contact you directly after you receive your first disbursement. For a list of federal loan servicers and their contact information, select “Additional Information” on the “Contact Us” page to access the list of servicers and their contact information.
A legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan holder. There is one MPN for Direct Subsidized/Unsubsidized Loans and a different MPN for Direct PLUS Loans.
Most schools are authorized to make multiple federal student loans under one MPN for up to 10 years.
Borrower’s Rights and Responsibilities Statement – The MPN contains a Borrower’s Rights and Responsibilities Statement that explains the terms and conditions of the loan(s) you receive.
You must list all taxable income you’re receiving this year (i.e., income from employment, unemployment income, dividend income, interest income, tips, alimony). Don’t report untaxed income such as Supplemental Security Income, child support, or federal or state public assistance.
If you would like to use your most recent AGI and it was not available through the IRS Data Retrieval Tool, enter your AGI next to Your Annual Taxable Income.
Note: If you filed a joint tax return, enter your joint AGI here and leave Your Spouse’s Annual Taxable Income blank.
The central database for student aid. NSLDS receives data from schools, guaranty agencies, and other Department of Education databases.
Any Title IV grant or loan you receive will be included in NSLDS. You can access NSLDS at www.NSLDS.ed.gov
A person’s most closely related living blood relative or relatives.
Money your parents give you to help pay for educational expenses. Not the Expected Family Contribution (EFC) from your FAFSA®.
Direct PLUS Loans and FFEL PLUS Loans are loans to eligible graduate or professional students and eligible parents of dependent undergraduate students to help pay for the cost of the student’s education at participating schools*
- Includes Direct PLUS Loans (made through the William D. Ford Federal Direct Loan Program) and FFEL PLUS Loans (made through the Federal Family Educational Loan Program**)
- Students’ loan information doesn’t include PLUS loans taken out by parents on their behalf.
*Graduate or professional students should exhaust unsubsidized and subsidized loans before taking out Direct PLUS Loans.
**The FFEL Program ended June 30, 2010 and no new loans have been made under the FFEL Program since that date.
A Section 529 plan. Prepaid tuition plans let you lock in future tuition rates at in-state public colleges at current prices and are usually guaranteed by the state.
The loan amount you borrowed plus any capitalized interest.
To pay back money you borrowed by making scheduled payments to a loan holder or servicer.
The maximum time period over which you must repay your federal student loan. The repayment period may range from 10 years to 30 years, depending on loan amount, loan type, and repayment plan.
A plan set up and agreed upon between a borrower and lender that determines the amount you pay each month and the number of payments you must make.
An allowance for the cost of housing and food while attending college or career school.
A summary of the information you submit on your Free Application for Federal Student Aid (FAFSA®) that provides you with your Expected Family Contribution (EFC).
Money you borrow for school and must repay with interest.
A federal student loan for which a borrower is not generally responsible for paying the interest while in an in-school, grace*, or deferment period. Includes Direct Subsidized Loans (made through the William D. Ford Federal Direct Loan Program) and Subsidized Federal Stafford Loans (made through the Federal Family Education Loan (FFEL) Program**.)
* Interest will be charged during your grace period, if your loan is first disbursed July 1, 2012 through June 30, 2014.
** The FFEL Program ended June 30, 2010 and no new loans have been made under the FFEL Program since that date.
Reduces the taxes owed.
Tax – Tax Credit=Taxes Owed
$1000 – $250 = $750
Reduces taxable income.
Income – Deduction=Taxable Income
$45,000 – $5,000 = $40,000
All income you’re receiving this year (i.e., income from employment, unemployment income, dividend income, interest income, tips, or alimony). Does not include untaxed income such as Supplemental Security Income, child support, or federal or state public assistance.
A form submitted to the Internal Revenue Service (IRS) and your state government on an annual basis reporting your income for the year.
The programs authorized under Title IV of the Higher Education Act are the major source of federal student aid. Title IV programs include:
- Loans
- Federal Family Education Loan (FFEL)
- Direct Loan
- Federal Perkins Loan
- Grants
- Federal Pell Grant
- Academic Competitiveness Grant (ACG)
- National SMART Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Federal Work-Study (FWS)
A charge for teaching/instruction at an institution (e.g. the rental or purchase of equipment (including equipment for instruction by telecommunications), materials, or supplies required of all students in the same course of study).
A student who is enrolled in an undergraduate course of study at a college/university or career school that usually doesn’t exceed four years and that leads to an undergraduate degree or certificate.
A federal student loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Includes Direct Unsubsidized Loans (made through the William D. Ford Federal Direct Loan Program) and Unsubsidized Federal Stafford Loans (made through the Federal Family Education Loan (FFEL) Program*.)
* The FFEL Program ended June 30, 2010 and no new loans have been made under the FFEL Program since that date.
Income you don’t pay taxes on, such as Supplemental Security income, child support, or federal, or public assistance.
Student loans provided by the U.S. Department of Education to enable a student to pay for education after high school. Eligible students borrow directly from the U.S. Department of Education at participating schools. Direct Loans include the following types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.
Financial Aid Eligibility Requirements
Videos and Other Helpful Resources
