Glossary - F

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FAA

Financial Aid Administrator. A college or university employee who is involved in the administration of financial aid. Also known as Financial Aid Advisors, Officers, or Counselors.

FAFSA (Free Application for Federal Student Aid)

This ED input document is the foundation for all need analysis computations. The application form is completed by the student and family. It gathers data to calculate the Expected Family Contribution (EFC). See NEED ANALYSIS and EXPECTED FAMILY CONTRIBUTION (EFC).

FAO

Financial Aid Officer. A college or university employee who is involved in the administration of financial aid. Also known as Financial Aid Advisors, Administrators, or Counselors.

FAT

Financial Aid Transcript. A record of all federal aid received by students at each school attended.

Federal Direct Consolidated Loan

A loan is arranged through ED's Direct Loan Servicing Center. The loan is designed to combine Title IV education loans (including non-Direct loans) into a single loan with one monthly repayment. Borrowers may also consolidate certain student loans from the
U.S. Department of Health and Human Services. If borrowers consolidate defaulted loans, a new payment schedule is established. Compare CONSOLIDATION LOAN.

Federal Direct Loan Program (William D. Ford Federal Direct Loan Program-FDLP)

A federal program where the U.S. government provides four types of education loans to student and parent borrowers:

These are also referred to collectively as Direct Loans. See individual loan names.

Federal Direct PLUS Loan

Parents may borrow from this education loan program on behalf of their dependent children. As one of the Direct Loans, PLUS loans are made directly by the federal government through students' schools. Beginning in the 2006-2007 academic year, PLUS loans have also been made available to graduate students.

Federal Direct Stafford Loan (Subsidized)

Subsidized based on student financial need, this loan program provides federally financed low-interest loans to students who are in undergraduate, graduate, or professional programs. During in- school, grace, and deferment periods, such as when a borrower is in school, the federal government does not charge interest on the loan. The loan formerly was part of the Guaranteed Student Loan (GSL) Program. In 1987, it was renamed to honor Senator Robert T. Stafford; in 1992, the word "Federal" was added to its name.

Federal Direct Stafford Loan (Unsubsidized)

Unsubsidized, this loan program provides federally financed, low-interest loans to students who are in undergraduate, graduate, or professional programs. These loans are not based on financial need and are not government subsidized. The borrower may pay the interest charges on the loan on a quarterly basis during in-school, grace, or deferment periods, or may allow the interest to accumulate and be capitalized when repayment begins. See CAPITALIZING INTEREST and FEDERAL DIRECT STAFFORD/FORD LOAN (SUBSIDIZED). Compare UNSUBSIDIZED FEDERAL STAFFORD LOAN.

Federal Family Education Loan Program (FFELP)

Formerly called the Guaranteed Student Loan (GSL) Program, this group of federal education loans was renamed the Federal Family Education Loan (FFEL) Program as part of the 1992 reauthorization of the Higher Education Act (HEA). The FFEL Program is made up of Federal Stafford Loans (both subsidized and unsubsidized), Federal PLUS (parent and graduate student) Loans, and Federal Consolidation Loans. All of these are long-term loans insured by state or private nonprofit guaranty agencies that are reimbursed by the federal government for all or part of the insurance claims paid to lenders. This guaranty replaces the collateral or security usually required with long-term consumer loans. The Federal Supplemental Loans for Students (SLS) Program, which was once part of the FFEL Program, was eliminated by legislation, effective July 1, 1994. See individual loan names.

Federal Methodology

The need analysis formula mandated by federal law to determine a family's Expected Family Contribution (EFC).

Federal Pell Grant Payment and Disbursement Schedules

Charts published annually by the U.S. Secretary of Education that determine the dollar value of student Federal Pell Grant awards on the basis of schools' costs of attendance (COA) and students' Expected Family Contributions (EFC).

Federal Pell Grant Program

A grant program for undergraduate students who have not completed a first baccalaureate degree. It is designed to financially assist students with need who are the least able to contribute toward their basic education expenses. If students apply, meet all the eligibility criteria, and are enrolled in an eligible program at an eligible institution, they will receive Federal Pell Grants. Formerly, this grant was called the Basic Educational Opportunity Grant (BEOG). In 1982, it was renamed to honor Senator Claiborne Pell; later the word "Federal" was added to its name.

Federal Perkins Loan (FPL) Program

This campus-based loan program provides low-interest student loans to undergraduate and graduate students with financial need. Formerly, it was called the National Direct Student Loan (NDSL) Program and the National Defense Student Loan Program. In 1987, it was renamed to honor Congressman Carl D. Perkins; later the word "Federal" was added to its name. See CAMPUS-BASED PROGRAMS.

Federal Plus Loan

Parents may borrow from this education loan program on behalf of their dependent children. Loans are made by lenders such as banks, credit unions, or savings and loan associations. Compare FEDERAL DIRECT PLUS LOAN.

Federal Register

A daily compilation of federal regulations and legal notices, presidential proclamations and executive orders, federal agency documents having general applicability and legal effect, documents required to be published by act of Congress, and other federal agency documents of public interest; prepared by the National Archives and Records Administration for public distribution by the Government Printing Office; publication of record for ED regulations.

Federal Student Aid Information Center

Office associated with the Department of Education that is available to assist students and families on applying for financial aid from the federal government. Also known as FSAIC.

Federal Supplemental Educational Opportunity Grant (FSEOG) Program

A campus-based aid program that provides grant assistance to students with financial need who are in undergraduate programs and have not earned a bachelor's degree or first professional degree. Priority in awarding Federal Supplemental Educational Opportunity Grant (FSEOG) funds is given to students who have exceptional financial need and are Federal Pell Grant recipients. See CAMPUS-BASED PROGRAMS.

Federal Work Study (FWS) Program

A campus-based, federally funded employment program that provides paid jobs for undergraduate or graduate students who need such earnings to meet a portion of their education expenses. Formerly, it was called the College Work-Study Program. See CAMPUS-BASED PROGRAMS.

Fellowship

A form of aid given to graduate students to help support their education. Some fellowships include tuition waivers or payments to universities in lieu of tuition. Most fellowships include a stipend to cover reasonable living expenses. Fellowships are a form of gift aid and do not have to be repaid.

FFELP

The Federal Family Education Loan Program. Stafford and PLUS loans are financed by private lenders and guaranteed by the federal government.

Financial Aid

Financial assistance in the form of scholarships, grants, work-study, and loans for education.

Financial Aid Administrator

A college or university employee who is involved in the administration of financial aid. Also known as Financial Aid Advisors (FAA), Officers, or Counselors.

Financial Aid Award Letter

The total amount of financial aid (federal and nonfederal) such as scholarships, grants, loans, and/or work-study for which a student is eligible.

Financial Aid Officer

A college or university employee who is involved in the administration of financial aid. Also known as Financial Aid Advisors, Administrators, or Counselors.

Financial Aid Package

The total amount of financial aid (federal and nonfederal) a student receives.

Financial Aid Transcript (FAT)

A document used by institutions to collect data about Title IV aid and other financial aid received by a student at other educational institutions. Institutions must provide completed financial aid transcripts (FAT) at no charge to students and former students.

Financial Need

The difference between the student's cost of attendance (COA) at a specific institution and what the student's family is able to pay--the Expected Family Contribution (EFC). See COST OF ATTENDANCE (COA) and EXPECTED FAMILY CONTRIBUTION (EFC).

Financial Responsibility

An institution must show that is has the financial responsibility to participate in federal Title IV student aid programs. Financial responsibility covers general standards as well as exceptions institutions can meet as alternatives. The standards include those for for-profit, nonprofit, and public institutions and cover the past performance of an institution or persons affiliated with an institution. For further information, refer to Volume 2, Chapter 11 of the 2006-2007 FSA handbook or Chapter 9 of the Blue Book.

Fixed Interest

On a fixed interest loan, the interest rate remains the same for the life of the loan.

Forbearance (on a loan)

When an FFEL lender (or the U.S. Department of Education for Direct Loans) allows a TEMPORARY cessation of payments or reduction of payment amounts for subsidized or unsubsidized Federal Stafford, Federal PLUS, Federal Perkins, or Federal Direct Loans. In doing so, it allows an extended period for making payments or accepts smaller payments than were previously scheduled. Forbearance may be given for circumstances that are not covered by deferment. Interest expenses continue to accrue during forbearance. Forbearance is an option of the FFEL lender or ED. However, there are a few circumstances where forbearance is mandatory with FFEL borrowers. See 2007-2008, The Guide to Federal Student Aid.

FSAIC

Federal Student Aid Information Center. Office associated with the Department of Education that is available to assist students and families on applying for financial aid from the federal government.

FSEOG

Federal Supplemental Educational Opportunity Grant.

FWS

Federal Work Study Program. The FWS Program provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses.