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Glossary of Terms
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Academic Year
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A period of time schools use to measure a quantity of study. For example, a school's academic year may consist of a fall and spring semester, during which a student must complete 24 semester hours. Academic years vary from school to school, and even from educational program to educational program at the same school.
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Accrual Date
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The date on which interest charges for a loan begin to accrue.
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Cancellation
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Some loan programs provide for cancellation of the loan under certain circumstances. Contact your lender for further information.
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Capitalization
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The practice of adding unpaid interest charges to the principal, increasing the size of the loan principal.
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Citizen/Eligible Noncitizen
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You must be one of the following to receive federal student aid:
U.S. citizen
U.S. national (includes natives of American Samoa or Swain's Island)
U.S. permanent resident who has an I-151, I-551, or I-551C (Alien Registration Receipt Card)
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If you're not in one of these categories, you must have an Arrival-Departure Record (I-94) from the U.S. Immigration and Naturalization Service (INS) showing one of the following designations in order to be eligible:
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"Refugee"
"Asylum Granted"
"Indefinite Parole" and/or "Humanitarian Parole"
"Cuban-Haitian Entrant, Status Pending"
"Conditional Entrant" (valid only if issued before April 1, 1980)
Other eligible noncitizen with a Temporary Resident Card (I-688)
Or you can be eligible based on the Family Unity Status category with an approved I-797 (Voluntary Departure and Immigrant Petition).
If you have only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), you aren't eligible for federal student aid.
If you're in the United States on an F1 or F2 student visa only, or on a J1 or J2 exchange visitor visa only, you can't get federal student aid. Also, persons with G series visas (pertaining to international organizations) are not eligible for federal student aid.
NOTE: Citizens and eligible noncitizens may also receive loans from the FFELP and Direct Loan Programs at participating foreign schools.
Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, and Palau are eligible only for Federal Pell Grants,Federal Supplemental Educational Opportunity Grants (FSEOGs), or Federal Work-Study. These applicants should check with their financial aid administrators for more information.
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Consolidation
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A consolidation loan combines several loans into one bigger loan. This sometimes results in a lower interest rate, as when a consumer loan is used to pay off credit card balances. Such loans often reduce the size of the monthly payment by extending the term of the loan. An extension of the term of the loan may also increase the overall cost of the loan. Consolidation loans also simplify the repayment process by allowing a single payment instead of several. Direct Consolidation Loans are available through the establishment of an Individual Education Account (IEA).
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Cost of Attendance (COA)
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The total amount it will cost a student to go to school. The COA includes tuition and fees; room and board and allowances for books, supplies, transportation, and loan fees (if applicable), dependent care, costs related to a disability, and miscellaneous expenses.
Cost Of Attendance (COA) minus Expected Family Contribution (EFC) equals Financial Need.
COA -EFC = FINANCIAL NEED
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Default
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Failure to repay a loan according to the terms agreed to when you signed a promissory note. Default also may result from failure to submit requests for deferment or cancellation on time. If you default, your school, the lender or agency that holds your loan, the state, and the federal government may all take action to recover the money, including notifying national credit bureaus of your default. This may affect your credit rating for a long time. For example, you may find it very difficult to borrow from a bank to buy a car or a house.
In addition, the lender or agency holding your loan may ask your employer to deduct payments from your paycheck. Also, you may be liable for expenses incurred in collecting the loan. If you decide to return to school, you're not entitled to receive any more federal student aid or any of the deferments listed in the Loan Deferment Summary. The U.S. Department of Education may ask the U.S. Internal Revenue Service to withhold your income tax refund, and the amount of your refund will be applied toward the amount you owe.
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Deferment
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Deferment occurs when a borrower is allowed to postpone repayment of a student loan. For example, some federal loan programs allow students to defer their loans while they are in school. Other loan programs allow the student to defer the interest payments by capitalizing the interest.
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Dependency Status
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A student's dependency status determines to what degree the student is expected to have access to parental financial resources. An independent student is one who is 24 years old as of January 1 (e.g., born before January 1, 1976 for academic year 1999-2000), is married, is a graduate or professional student, has legal dependents other than a spouse, is a veteran, or is an orphan or ward of the court. All other students are considered dependent and, as such, must provide parental information on the Free Application for Federal Student Aid.
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Direct Lending
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Direct Lending is a new federal student loan program where the school lends money on behalf of the Federal government. CSN does not participate in the Federal Direct Student Loan Program and the Federal Direct Parent Loan Program.
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Direct Aid Student Grants
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Direct Aid Nevada Grant (DANG) and Direct Aid Book Grant (DABG) are two grants administered by CSN to help qualified students purchase textbooks and cover a variety of expenses associated with pursuing an educational or career goal. The amount varies depending on such factors as allowable cost of attendance, full or part-time enrollment, on or off campus residence, and in-state or out-of- state residence.
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Disbursement
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The date on which funds are released from the school for payment.
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EFT (Electronic Funds Transfer)
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Electronic Funds Transfer is used by lenders to wire funds directly to participating schools without requiring an intermediate check for the student to endorse.
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Entrance Interview
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Students with educational loans are required to meet with an FAA before they are eligible for loan certification.
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ESAR (Electronic Student Aid Report)
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An ESAR is an electronic reproduction of a Student Aid Report (SAR), usually produced locally by theFAO.
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Exit Interview
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Students with educational loans are required to meet with an FAA before they graduate or leave school or stop attending on at least a half-time basis. During this exit interview, the FAO reviews the repayment terms of the loan and the repayment schedule with the student.
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Eligible Program
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A course of study that leads to a degree or certificate and meets the U.S. Department of Education's requirements for an eligible program. To get federal financial aid, you must be enrolled in an eligible program, with two exceptions:
If a school has told you that you must take certain course work to qualify for admission into one of its eligible programs, you can get a Direct Loan or a FFELP Program Loan (or your parents can get a PLUS Loan) for up to 12 consecutive months while you're completing that course work. You must be enrolled at least half time, and you must meet the usual student aid eligibility requirements.
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FAA
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A FAA is a Financial Aid Administrator, a school employee who is involved in the financial aid process.
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FAO
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The Office of Student Financial Aid at CSN is responsible for the administration of various financial aid programs.
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FFELP
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The FFELP is the Federal Family Education Loan Program, and includes the Federal Stafford Loans and the Federal PLUS loans. For further information see: LOANS
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Forbearance
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A forbearance is a condition where the lender allows the borrower to postpone repaying the principal of their loan, but requires the borrower to continue paying the interest charges.
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FWS (Federal Work Study)
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The Federal Work-Study program is a form of cooperative education which provides students with on and off-campus employment while in school that is theoretically career-oriented (but general office and clerical positions are not uncommon). Eligibility is based on need. Essentially FWS pays a portion of the student's salary while the hiring departments and business pay the remainder. For further information see: Workstudy.
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Full Time
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At schools measuring progress by credit hours and semesters, trimesters, or quarters, full-time enrollment is at least twelve semester hours or quarter hours per term. Note that schools may choose to set higher minimums than these.
Full time enrollment is not a requirement to receive aid from the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG) or Federal Work-Study programs.
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Garnish
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The practice of withholding a portion of a borrower's wages to repay his or her loan, often without their consent.
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General Education Development (GED) Certificate
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A certificate students receive if they've passed a specific, approved high school equivalency test. Students who don't have a high school diploma but who have a GED may still qualify for federal student aid. A school that admits students without a high school diploma must make a GED program in the vicinity of the school available to these students and must inform them about the program.
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Grace Period
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A short time period after graduation during which the borrower is not required to begin regular repayment of their student loan. The typical grace period is six or nine months depending on the type of loan program.
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Grant
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A grant is a kind of financial aid that the student does not have to repay.
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Guaranty Agency
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The organization that administers the FFELP Program for your school. The federal government sets loan limits and interest rates, but each guaranty agency is free to set its own additional limitations, within federal guidelines. This agency is the best source of information on FFELP Program loans. To find out the name, address, and telephone number of the agency serving your state, as well as information about borrowing, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).
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Half Time
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At schools measuring progress by credit hours and semesters, trimesters, or quarters, half-time enrollment is at least six semester hours or quarter hours per term. Note that schools may choose to set higher minimums than these.
You must be attending school at least half time to be eligible to receive Direct or FFELP Program loans. Half-time enrollment is not a requirement to receive aid from the Federal Pell Grant, or Federal Supplemental Educational Opportunity Grant (FSEOG).
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Individual Education Account (IEA)
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An Individual Education Account (IEA) is a federal program under which you can consolidate multiple federal education loans into a new, single account--this means you'll have to make only one monthly payment to cover all your loans.
Even if you currently have only one loan to consolidate, there are still benefits to an IEA: you can choose from four repayment options--that is, you can pick the repayment option that is right for you. Also, the interest rate on your new loan may be lower. If you have questions about the Federal Direct Consolidation Loan Program or the Individual Education Account, contact the Direct Loan Servicing Center at: Direct Loan Servicing Center, Post Office Box 4609, Utica, New York, 13504-4609 or call 1-800-848-0979/(TDD) 1-800-848-0983 between 8:00 a.m. and 8:00 p.m., EST, Monday - Friday.
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Interest
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Interest is an amount charged to the borrower for the privilege of using the lender's money. Interest is usually calculated as a percentage of the principal. The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan. All new Federal Stafford and PLUS loans use variable interest rates that are tied to the rates for federal treasury bills.
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Lender
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The bank or lending institution that provides the money to the borrower for the loan. For Federal Direct Loans, the lender is the federal government.
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Less than Half time
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At schools measuring progress by credit hours and semesters, trimesters, or quarters, less than half-time enrollment is less than six semester hours or quarter hours per term. Note that schools may choose to set higher minimums than these.
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Need
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The difference between the COA and the EFC is the student's financial need - the gap between the student's resources and the cost of attending the school. The financial aid package is often based on the amount of financial need. The process of determining a student's need is known as the need analysis.
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NevadaStateIncentive Grant (NSIG)
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A state funded award for qualified low income students who are Nevada residents to help them continue their education. The amount varies depending on such factors as allowable cost of attendance, full or part-time enrollment, on or off campus residence, and in-state or out-of- state residence.
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Origination Fee
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The origination fee is an upfront charge deducted from the loan to pay part of the loan's administrative costs.
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Pell Grant
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The Pell grant is a federal grant that provides funds of up to $4,0505 based on the student's financial need. For further information see: GRANTS
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Perkins Loan
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Formerly the National Direct Student Loan Program, the Perkins Loan is a low interest loan that allows undergraduate students to borrow up to $3,000/year (5 year max) for undergraduate study and $5,000/year for graduate school (6 year max).
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PLUS Loans
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Parent Loans for Undergraduate Students (PLUS) are federal loans available to parents of undergraduate students to help finance the student's education. Parents may borrow up to the full cost of their children's education, less the amount of any other financial aid received.
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Professional Judgment (PJ)
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In some federal aid programs the FAA can override the amount of aid granted when extenuating circumstances exist.
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Principal
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Principal is the amount of money borrowed under the loan. Interest is charged as a percentage of the principal.
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Promissory Note
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The binding legal document you sign when you get a student loan. It lists the conditions under which you're borrowing and the terms under which you agree to pay back the loan. It will include information about your interest rate and about deferment and cancellation provisions. It's very important to read and save this document because you'll need to refer to it later when you begin repaying your loan.
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Regular Student
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One who is enrolled in an institution to obtain a degree or certificate. Generally, to receive aid from the programs discussed in this booklet, you must be a regular student. (For some programs, there are exceptions to this requirement. See the definition of eligible program.)
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Satisfactory Academic Progress
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To be eligible to receive federal student aid, you must maintain satisfactory academic progress toward a degree of certificate. You must meet CSN's written standard of satisfactory progress. Copies of CSN's policy are available in the Financial Aid Office or for further information see: SATISFACTORY PROGRESS
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Scholarship
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A form of financial aid given to undergraduate students to help pay for their education. Most scholarships are restricted to paying all or part of tuition expenses, though some scholarships also cover room and board. For further information see: SCHOLARSHIP
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Secondary Market
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Loans are often bought and sold on the secondary market. Thus the bank you make your payments to may change during the lifetime of the loan. The terms of your loan do not change when it is sold to another lender.
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Selective Service Registration
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If required by law, you must register, or arrange to register, with the Selective Service to receive federal student aid. The requirement to register applies to males who were born on or after January 1, 1960, are at least 18 years old, are citizens or eligible noncitizens, and are not currently on active duty in the armed forces. (Citizens of the Federated States of Micronesia, the Marshall Islands, or Palau are exempt from registering.)
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SEOG
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The Supplemental Education Opportunity Grant (SEOG) is a federal grant program for undergraduate students with exceptional need. SEOG grants are awarded by the school's financial aid office.
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StaffordLoans
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Federal Direct Stafford Loans are federally guaranteed student loans that come in two forms, subsidized and unsubsidized. Subsidized loans are based on demonstrated financial need; unsubsidized loans are not.
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Student Aid Report (SAR)
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The form students receive after their FAFSA has been processed that notifies them of their eligibility status for financial aid.
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Subsidized Loan
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With a subsidized loan, the government pays the interest on the loan while the student is in school at least half-time, during the grace period, and during any approved deferment periods.
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Three Quarter Time
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At schools measuring progress by credit hours and semesters, trimesters, or quarters, full-time enrollment is at least three quarter time semester hours or quarter hours per term. Note that schools may choose to set higher minimums than these.
Three quarter time enrollment is not a requirement to receive aid from the Federal Pell Grant,Federal Supplemental Educational Opportunity Grant (FSEOG), or the Federal Work-Study programs.
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Unmet Need
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In an ideal world, the FAO would be able to provide each student with the full difference between their ability to pay and the cost of education. Due to funding constraints the FAO may provide the student with less than the student's demonstrated financial need (as determined by the FAO). This gap is known as the unmet need.
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Unsubsidized Loan
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An unsubsidized loan is a loan for which the government does not pay the interest. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed. The borrower may be eligible to choose to have the interest deferred and capitalized into the loan principal.
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Verification
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Verification is a review process in which the FAO determines the accuracy of the information provided on the student's financial aid application. During verification the student will be required to submit documentation to support the information listed (or not listed) on the financial aid application.
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