Cost of attendance (COA)
The total amount of money that a student will require to attend school is known as the Cost of Attendance (COA). Federal law allows the value to include:
An allowance for books, supplies and transport
An allowance to cover room and board (rent or hall charges)
An allowance for dependent care if necessary
An allowance to assist with any disability
Coverage of any charges or premiums associated with a Federal loan
On average the University estimates that a years tuition and living expenses will be in the region of £20,000 (approximately $40,000) for Graduates, less to non-graduates. If you disagree with this amount and feel you need more, then you need to send a detailed breakdown of your expected expenditure to the Student Funding Office.
If you default, it means that you have failed to make payments on your student loan according to the terms of your promissory note. Default is a serious matter. Some of the consequences of default are:
National credit bureaus can be notified of your default, which will harm your credit rating, making it more difficult to buy a car or house.
You would be ineligible for additional federal student aid if you decided to return to University.
Loan payments can be deducted from your paycheck.
State and federal income tax refunds can be withheld and applied toward the amount you owe.
You will have to pay late fees and collection costs on top of what you already owe.
You can be sued.
The default fee (previously known as the "guarantee fee") is a charge made by the lender to cover any costs incurred if you miss repayments once you have graduated.
Deferment is a temporary period during which a borrower is not required to make payments.
For Stafford Loan borrowers, many deferments are subsidized, meaning the interest that accrues on the loan during the deferment is paid by the federal government. Some deferments are unsubsidized, meaning the interest that accrues must be paid by the borrower.
It is recommended that you contact your lender to discuss the option.
EFC (Expected family contribution)
The Expected Family Contribution (EFC) is the amount that dependent students are expected to receive in financial support from their parents. It is determined by a Federal government calculation that examines the family resources available from a family's income (less allowances for taxes and living expenses) and assets (less allowances for retirement) to assist a student in their studies. A percentage of these available amounts is earmarked as EFC.
The Free Application for Federal Student Aid (FAFSA) is the form used by the U.S. Department of Education to determine your Expected Family Contribution (EFC) by conducting a “need analysis” based on financial information, such as income, assets and other household information, which you (and your parents if you are a dependent student) will be asked to provide. The form is submitted to, and processed by, a federal processor contracted by the U.S. Department of Education (ED), and the results are electronically transmitted to the financial aid offices of the schools that you list on your application.
The FAFSA is the application used by nearly all colleges and universities to determine eligibility for federal, state, and college-sponsored financial aid, including grants, educational loans, and work-study programs.
Forbearance is a temporary postponement of your loan repayments, for students who are not entitled to deferment. Again, it is recommended that you seek more information from your lender.
A period of time after a borrower graduates, leaves school, or drops below half-time enrollment where they are not required to make payments on their Federal student loans. Interest will accrue on subsidized loans made between July 1, 2012 and July 1, 2014, and all unsubsidized loans during grace periods. If the interest is not paid, it will be added to the principal balance of the loan when the repayment period begins. Each loan has only one grace period.
All graduate/professional students are considered independent; otherwise to be considered independent you must fit into one of the categories below:
Are older than 23 years at the time of completing the FAFSA
Are currently or have been married at the time of completing a FAFSA
Are a parent
Are a veteran
Are a ward of the court
The classification of your dependency status is used to determine how much of the Federal Stafford loan is available to you.
A Master Promissory Note (MPN) is a legally binding document under which the borrower promises to repay the loan and to comply with the terms and conditions of the agreement.
The origination fee is a charge made by the lender to cover the administrative charges related to your loan. The origination fee on Direct Federal loans is 0.5% and this will be taken from each disbursement.
The Student Aid Report (SAR) is a compilation of all the information that was submitted on the FAFSA. The information will be used by the school to assess eligibility for Federal loans, therefore it is important that the information is accurate. Changes can be made by logging back into the FAFSA website.