Federal Family Education Loan Program (FFELP)

Type of loans available

U.S. citizens or eligible non-citizens who are enrolled at least half time in a degree program, making satisfactory academic progress and not in default or owing a return repayment on a grant or loan are able to borrow from a U.S. bank or lender some or all of the costs of their attendance at Deakin University using the loan options offered under the Federal Family Education Loan Program (FFELP).

The U.S. Government guarantees these loans and the interest rates charged are generally lower than other commercially available loans. Some components of these loans may also be subsidised by the U.S. Government and the interest charged on subsidised components is paid for you whilst you remain in at least half time study.

FFELP offers the following loans to eligible Deakin University students:

Federal Subsidized Stafford Loan

based on financial need as determined by the U.S. Department of Education. The U.S. federal government pays the interest while you are enrolled at least half time in; university, during authorised periods of deferment and for the six-month grace period after you leave university or drop below a half time enrolment
not required to make payments while you are studying
commence repayment six months after you graduate, leave university, or drop below half-time enrolment.

Federal Unsubsidized Stafford Loan

not based on financial need
borrower responsible for paying the interest that accrues on the loan from the time the loan is disbursed
interest may be paid as it becomes due, or it may be allowed to accumulate while you are in university, during any authorised period of deferment and for the six-month grace period after you leave university or drop below half time enrolment
interest accumulated adds to the amount you will have to repay on your loan when you leave university, and it may increase the amount of your monthly payments.

Federal PLUS (Parent Loan for Undergraduate Students)**

not based on financial need
borrowers are required to pass a credit check. Parents are eligible for this loan if their child is a dependent undergraduate student as defined by the U.S. Department of Education and if they meet certain credit guidelines
deferment of payment may be available through selected lenders
interest begins to accrue when funds are disbursed and repayment begins within 60 days after the loan has been fully disbursed.

Federal Graduate PLUS Loan (Grad PLUS)**

the eligibility for the PLUS loan program has been expanded to include Graduate or professional students into the PLUS program
Graduate students should apply for both subsidised and unsubsidised Federal Stafford loans before applying for a Graduate PLUS loan
Repayment begins within 60 days after the loan has been fully disbursed unless an In-School Deferment form (54 KB) is completed or the lender activates an automatic deferment
Grad PLUS loans do not have a grace period and repayment begins immediately after an In-School Deferment ends.

** A 3% origination fee is mandated by law on all PLUS loans and 1% default fee is paid by some lenders on behalf of borrowers.

2010 - 2011 Interest rates

Interest Rates for Direct Loan (DL) and Federal Family Education Loan (FFEL) Programs effective July 1, 2010

Fixed Rates for loans first disbursed on or after July 1, 2006

Loan Type	Grade Level	First Disbursed Between July 1, 2009 and June 30, 2010	First Disbursed Between July 1, 2010 and June 30, 2011 (See note)
Subsidized Loans	Undergraduate	5.60	4.50
Subsidized Loans	Graduate	6.80	6.80
Unsubsidized Loans	Undergraduate	6.80	6.80
Unsubsidized Loans	Graduate	6.80	6.80
PLUS Loans	Parent and Grad Student	7.90 for Direct Loans and 8.50 for FFEL	7.90 for Direct Loans and 8.50 for FFEL

NOTE: Effective July 1, 2010, the only loans that can be made are Direct Loans

Limits

The maximum limits of Federal Stafford Loans are as follows (NOTE: listed in U.S. dollars):

	Max Subsidized amount	Max Unsubsidized amount	Max Subsidized + Unsubsidized amounts Combined
Dependent Undergraduates
1st Year	$3,500	$2,000	$5,500
2nd Year	$4,500	$2,000	$6,500
3rd Year and Up	$5,500	$2,000	$7,500
Independent Undergraduates
1st Year	$3,500	$6,000	$9,500
2nd Year	$4,500	$6,000	$10,500
3rd Year and Up	$5,500	$7,000	$12,500
Postgraduate/Professional Students
All	$8,500	$12,000	$20,500
Maximum Total Debt from Stafford Loans when you graduate
		Max Subsidized + Unsubsidized amounts Combined
Dependent Undergraduates		$31,000 (not more than $23,000 subsidized)
Independent Undergraduates		$57,500 (not more than $23,000 subsidized)
Postgraduate/Professional Students		$138,500 (not more than $65,500 subsidized)

Eligibility

To be eligible for U.S. financial aid at Deakin University you must meet the following criteria:

Be a citizen, national permanent resident or eligible non-citizen of the United States
Be enrolled at least half time in an eligible program, i.e. a degree program or other recognised educational credential offered by Deakin University. N.B. Distance education / off-campus studies undertaken at a foreign school is not considered as an eligible program by the U.S. Department of Education
Agree to maintain Satisfactory Academic Progress (SAP) consistent with Deakin academic progress policy, statutes or regulations and student visa requirements
Not be in default on a Stafford, PLUS, or any other student loan
Not have been convicted of any offence under state or federal law involving the sale or possession of a controlled substance
If you are male between the ages of 18-25, be in compliance with Selective Service registration requirements
File a Free Application for Federal Student Aid (FAFSA)
For PLUS loans, your parents must pass a simple credit check
Comply with requests for documentation if selected for verification by the U.S. Department of Education, as indicated on your Student Aid Report
Submit all documentation required to verify your eligibility and determine your financial need.

The amount you can borrow is determined based on a number of factors including:

Whether you are a dependent or independent student (see below)
What level or year you are studying
Whether you have previous outstanding federal loans
The cost of attendance
Recent income (as assessed during the loan application process).

A student's dependency status is determined from information provided on the FAFSA. It affects the Expected Family Contribution (EFC) and types of aid that you may be eligible to receive. For the majority of undergraduate students, your Student Aid Report (SAR) generated from your FAFSA will classify you as a dependant student. However, if you can answer YES to at least one of the following conditions you will be considered an independent student:

You are at least 24 years old by December 31 of the award year
You are working on a masters or doctorate program at the beginning of the award year for which the FAFSA is completed
You are married (if you are separated but not divorced, you should answer YES) as of the date the FAFSA is completed
You have children who receive more than half their support from you
You have dependants (other than children or spouse) who live with you and currently receive more than half of their support from you now and throughout the award year
You are an orphan or ward of the court or was a ward of the court until age 18
You are a veteran of the U.S. Armed Forces.

Please note that the University requires documentation to support any YES replies above.

How to apply

Complete the Deakin University Financial Aid Application form (90 KB).
Apply for your Personal Identification Number (PIN) for Federal Student Aid purposes. Safeguard and remember your PIN.
Complete the Free Application for Federal Student Aid (FAFSA) online for the period you are applying for at FAFSA or Federal Student Aid. Applying online is recommended.
When completing the FAFSA, you need to enter Deakin University’s U.S. Department of Education federal university / school code. The code is G30969.

Remember that you must reapply for the federal student aid every year.
After completing the FAFSA, you will receive your Student Aid Report (SAR). This document lists the information you and your family have provided in your FAFSA and advises of your Expected Family Contribution (EFC) for the year for which you are applying. The EFC is used to determine your eligibility for federal student aid during one academic year. Deakin University will use this information to decide how much financial aid you are eligible to receive based on the Cost of Attendance (COA). Please print the SAR summary page.
Deakin University and FFELP regulations require all students to undertake loan counselling at the appropriate grade level. The Stafford Entrance Counselling is available at Mapping Your Future (select Australia and "Deakin University - Melbourne, Australia, Commonwealth of"). Loan applications cannot be certified until the entrance loan counselling has been completed.

N.B. Students may also be required to undertake extended Entrance Counselling once enrolled in their course. Students will be advised details of the extended Entrance Counselling closer to event date/accordingly.
Complete a Master Promissory Note (MPN). The MPN is the contract you sign to indicate your intention to repay the loan. Funds cannot be disbursed to you unless you complete this form. To expedite the loan process, Deakin University is one of the foreign institutions participating in FFELP that has the online facility for an MPN to be completed electronically. This is done via ASA Direct and is a free service.
Forward the completed Deakin University Financial Aid Application form and required documentation to:

Financial Aid Application
International Compliance and Scholarships
Deakin International
Deakin University
221 Burwood Highway
Burwood Victoria 3125
Australia

Email: financial-aid@deakin.edu.au

Your Cost of Attendance (COA), determining the amount for which you are eligible will be calculated based on annual expenses:

AUD $ xxxxx	Tuition Fees as per Deakin University International Course Guides
AUD $ xxx	Overseas Student Health Cover as outlined in your Offer letter
AUD $ 12,000	Living expenses (as prescribed by the Department of Immigration and Citizenship (DIAC))
AUD $ 1,200	Books and supplies
AUD $ 2,000	Computer cost (one off, 1st year only)
AUD $ 1,950	Airfare cost (one off, 1st year only)
AUD $ 1,500	Public transports cost
AUD $ 500	Course related expenses/field trip travel expense (HDR students only)

An approved maximum amount for COA will enable you to choose an amount up to the notified limit.
If you need more funding, you will need to research an alternative loan opportunity.
All loan amounts will be disbursed to students prior to the start of each teaching period, typically February, July or October - usually the mid of February, July or October. Prepare for your first costs by arriving with enough funds to cover the Cost of Attendance and any other personal expenses for at least the first 6-8 weeks of trimester in the event that there is some delay in your financial aid arriving from the U.S.

Student loan responsibilities

You need to know and take responsibility for knowing about loan conditions, disbursements and repayments. Participate in loan counselling and research – know your obligations, rights and options under the terms of your loan (refer to step 3 in the How to Apply section). Loan counselling is especially important for new students. You should be aware of obligations such as:

Repaying your loan
Your obligation to repay becomes legally binding when you sign the Master Promissory Note (MPN). Your requirement to repay does not go away because you:
- Do not complete your educational program
- Cannot find employment
- Were not satisfied with the education or other services your received from the University
- Were notified that your loan was sold to another party by your lender.
Paying on time
You must make your payments on time unless you have made special arrangements with the lender. Many lenders offer repayment incentives to reward you for paying on time.
Making a minimum payment
A minimum monthly loan payment is required. This minimum amount varies depending on the amount you borrow and your repayment plan.
Notifying Deakin University and the lender about changes in any of the following:
- Your name and contact details (e.g. permanent address / current postal address / phone numbers / email address)
- Your Social Security Number (SSN)
- Your enrolment status, e.g. withdrawal from university or dropping below full-time
- Your anticipated graduation date
- Your driver's license number
- Your referees
- Your expected employer
Maintaining Satisfactory Academic Progress (SAP)
Completing an Exit Counselling before you leave University or graduate.
This counselling will cover repayment options, deferments and other important information you may need during your repayment term. You will also need to provide the name and address of your closest living relative and two references (not the same as your closest living relative) with different addresses.

Satisfactory Academic Progress

Deakin University is required by U.S. federal law (34CFR 668.16) to define and enforce standards of Satisfactory Academic Progress (SAP) to all students applying for or receiving U.S. Federal Aid (subsidised, unsubsidised and PLUS). The requirement has been established to encourage students to successfully complete academic programs for which aid is received.

A student must maintain a minimum standard of progress towards completion of their chosen academic program by attaining a Pass grade average (GPA 1.0) for each trimester to retain eligibility for further aid.
Students are entitled to modify their enrolment within the first two weeks of each trimester and retain eligibility for aid, provided they maintain a full-time or half-time enrolment when studying.
Results are evaluated at the end of each trimester.
Failure to maintain the required standards can result in suspension of financial aid.

Maximum Timeframe

An undergraduate student is entitled to receive aid for 150% of the allocated course time frame, e.g.:

- 3 year degree - eligibility for aid 4.5 years
- 4 year degree - eligibility for aid 6 years
- 5 year degree - eligibility for aid 7.5 years

Once the maximum time allowed is reached, the student will have their aid terminated
Non-credit units will not be counted in assessing full-time hours
Must achieve a grade on any deferred or supplementary assessment within 6 months of completing a class
You should be aware that, whilst federal eligibility may allow you to continue to apply for financial aid, individual academic progress rules and student visa restrictions may impact on your ability to continue within your program of study.

Notification

If your SAP is deemed unsatisfactory, you will be notified in writing if your financial id is suspended.
An appeal procedure for verifiable extenuating or unforeseen circumstances is available, if you believe that you meet those criteria (see Appeals below).
Deakin University cannot waive the Satisfactory Academic Progress (SAP) requirement for any student to receive financial aid.

Financial Aid Probation and Suspension

The rules for Financial Aid Probation and/or Suspension are as follows:

If SAP does not meet the required standards of academic progress, the student will be placed on financial aid probation for six months, and will be advised in writing of this probation
Students who have been placed on probation and subsequently meet the required standard of academic progress in the next trimester will be placed back into good financial aid standing and will continue to receive aid subject to meeting the satisfactory academic progress requirements
Students who have been placed on probation and do not meet the requirements applicable to degree and level will be suspended and ineligible to receive aid until such time as they achieve the required standard of academic progress. A Notice of Suspension letter will be sent to students to notify of suspension
Students may appeal their suspension of aid, via written appeal to the Financial Aid Director (FAD), Deakin International. Students who appeal will be informed in writing of the FAD’s decision, which is final.

Appeals

Students who have their eligibility for U.S. Federal Aid suspended may appeal the suspension if they can demonstrate one or more of the following exceptional circumstances:

Death of a family member (parent, spouse, sibling, dependant child, etc)
Extended illness of the student (documented chronic or recurring medical or emotional illness that causes absence from class at least 15 days or more)
Extended illness of an immediate family member (parent, spouse, sibling, dependant) that places hardship on the student

Mitigating circumstances as determined by the Financial Aid Director (FAD) Students must indicate in writing the reason(s) for failure to meet the necessary financial aid SAP requirements and why their financial aid should not be suspended. All appeals must be received within ten days of receipt of the Notice of Suspension, and must be accompanied by appropriate supporting documentation (e.g. medical certificate). Disbursements of funds will not be made while an appeal is being processed.

Students should submit an appeal to:

Financial Aid Director (FAD) (Appeal)
International Compliance and Scholarships
Deakin International
Deakin University
221 Burwood Highway
Burwood VIC 3125
Australia

Email: financial-aid@deakin.edu.au

Refunds

If a student who receives financial aid withdraws from the University and is due a refund of fees paid for that period of enrolment, a determination must be made as to whether any of the refund money must be returned to the U.S. Federal Aid program. If it is determined that refund money must be returned to the aid program, it will be returned in accordance with the initial distribution of Stafford funds in the following order:

Federal Stafford Unsubsidized
Federal Stafford Subsidized
Federal PLUS

The U.S. federal rules state that you earn your aid based on the period of time you remain enrolled – the number of days enrolled divided by the number of days in the enrolment period equals the percentage of aid earned. If you remain enrolled beyond 60% of the payment period, you earn all your aid. Aid earned is credited to your enrolment account. The responsibility to repay unearned aid is shared by the University and you in proportion to the aid each is assumed to possess.

The University's share is the lesser of:

the total amount of unearned aid or
the University's charges multiplied by the percentage of aid that was unearned.

Your share is the difference between the total unearned amount and the University's share.

This rule applies to students with financial aid who officially withdraw. It may also apply to those who stop attending classes without formally withdrawing.

In the case of a prolonged illness, accident, death in the family, or other circumstances that make it impractical to complete the trimester, you may submit an appeal through the Financial Aid Director, Deakin International. A decision will determine a settlement that is reasonable and fair to both you and the University.

If unearned aid results in a balance due, the University will notify you via an on-line invoice which is accessible via StudentConnect. It is your responsibility to pay those funds. Please also refer to Deakin University Fees and Charges 2009 booklet for details of refund policy.

Repayments

It is a requirement that you complete exit loan counselling before you leave university to ensure that you are aware of the types of repayment plans, loan consolidation options and deferment options that are available to you.

As soon as you leave university or drop below half-time enrolment you have a 6 month grace period before you must commence monthly principal and interest repayments on your loan.

Before repayment starts, you will be provided with repayment plan options and a Repayment Schedule from your lender or servicer for each type of loan you have. If you do not receive these documents toward the end of your grace period, contact your lender because repayment begins whether you are aware of it or not.

Loan consolidation

By the time you finish university, you may have a number of loans. These loans may be with more than one lender and may have different terms. Repayment can become complicated if you have to make different payments at different times of the month. Loan consolidation is a way to make repayment of multiple loans less complicated.

You can consolidate all your federal student loans into one loan with a fixed rate and a single, lower monthly payment. You pay no additional fees to consolidate your loans. More importantly, you may reduce the amount of each monthly payment by extending your repayment term, but remember that a longer repayment term increases the amount of interest you pay over the term of your loan. To be eligible for a consolidation loan you must be in a grace period, repayment, deferment, or forbearance. You should first discuss consolidation with your existing lenders. If your lender does not consolidate, they will most likely be able to recommend another lender.

The National Student Loan Data System (NSLDS) provides data on all your federal student loans to assist you keep track of the amounts borrowed.

Deferment

An advantage of borrowing through the FFELP is the option you have to postpone repayment for a period of time under certain conditions. However, it is important to note how interest must be paid or not paid on various loans:

Federal Subsidized Stafford Loans
Interest is paid by the federal government during in-university, grace, and authorised deferment periods.

Federal Unsubsidized Stafford Loans
The borrower is responsible for paying the interest that accrues during university, grace, and authorised deferment periods. To apply for a deferment, contact your lender or servicer.

You may renew a deferment, up to the maximum time allowed. You may need to complete and submit separate deferment forms for different types of loan (with FFELP loans, one deferment form is usually sufficient). You should continue making loan payments until you have been notified that the deferment is granted. Keep copies of all forms and correspondence related to your deferment. If you do not receive written confirmation of your deferment be sure to request it.

Forbearance

If you find yourself in temporary financial difficulty and no deferment option applies to you, you can request to postpone payments with a forbearance from your lender or servicer. Forbearance is granted at the lender's discretion and allows you to have months added to the term of your loan, temporarily reduce the amount of your monthly payment or temporarily suspend monthly payments

Note that interest continues to accrue on your loan during a forbearance. That interest must be repaid, which can result in higher monthly payments once the forbearance has ended. The federal government does not pay the interest on Subsidized Stafford loans while your loans are in forbearance. To apply for forbearance contact your lender or servicer.

Default and Delinquency

Failure to make your monthly payment within 30 days will result in you being considered as a delinquent borrower and may result in your delinquency being reported to a credit bureau. This could damage your credit rating. It is essential that you contact your lender immediately if you are unable to make a monthly payment to avoid default.

After several months of delinquency, you will be classified as a defaulter. Defaulting on loan repayments can have a number of serious consequences, including:

a portion of your wages can be withheld to repay the loan;
you may be sued and you will be responsible for all costs;
collection agencies take over and add an additional 15-18% interest to the loan;
your U.S. federal income tax refunds can be withheld to repay the loan;
a number of U.S states may cancel your driver's licence;
you lose eligibility for all federal and state financial aid until you have made satisfactory repayment arrangements;
in a profession that requires a license to practice, that license can be denied renewal until you make satisfactory payment arrangements.

The U.S. Department of Education calculates a cohort default rate annually to determine the percentage of Stafford loan borrowers at each university who default on their loan repayments. A default rate of greater than 5% can result in the loss of Deakin University's eligibility to participate in the Federal Family Education Loan Program.

Guarantors and Lenders

A Guarantor or Guarantee Agency verifies your eligibility for a particular federal loan program and provides the insurance for those loans. If you do not repay your loan the guarantee agency will pay the lender with funds received from the federal government and collect the balance directly from you. Deakin University works closely with American Student Assistance (ASA) and they provide a free guarantee service.

Applying for your Federal Stafford Loan through a Guarantor usually results in a quicker turn-around time than applying directly to a lender. Alternatively, you may wish to apply through your U.S. state guarantee agency.

Once you have chosen a guarantee agency, you are also required to choose a suitable lender to provide the loan funds. The current lending crisis in the U.S has made an impact to the availability of lenders participating in FFELP. Students are encouraged to research and discuss with lenders the borrower benefits offered that would best suit their needs before choosing a lender. Your chosen guarantee agency may also have a list of preferred lenders which you may choose to provide your loan funds.

Department of Veterans Affairs benefits

The U.S. Department of Veterans Affairs (DVA) will pay an eligible student education benefits to study an approved program of education or training. An approved program is a course of study or a program of training which has been determined by the DVA as meeting the legal requirements for payment of educational assistance benefits to veterans and other eligible persons.

Students may receive benefits from only one Veterans Affairs educational chapter at a time although they may have eligibility under more than one chapter. Each VA education program has distinct eligibility requirements under specific chapters of Title 38, U.S. Code (USC).

The U.S. Department of Veterans Affairs is the only organisation authorised to determine your eligibility. Specific questions on eligibility should be directed to:

Buffalo VA Regional Office
(Foreign Schools)
P.O. Box 4616
Buffalo NY 14240 - 4616
USA

Tel: 716 857 3196 or 716 857 3197

A special service is offered for foreign school applicants whereby you dial "1" to be placed at the head of the queue.

Students who wish to apply for VA benefit can print a paper based application, or apply online through the Veteran Online Application website (VONAPP).

If you receive Veterans educational assistance, you are required by law (38 U.S.C., 1775 and 1776) to provide official transcripts of prior education, training and experience at the time you enrol. An evaluation of your prior education and training will be undertaken to determine if any units you completed at other institutions or awarded to you as a result of your military service can be applied to your proposed degree program and therefore decrease your course duration.

It is your responsibility to notify the VA Certifying Official if you reduce your hours of enrolment by withdrawing from a unit, terminating your enrolment, or making any other changes that would affect your payment status. If you withdraw or drop a unit, you may have to repay all or part of the benefits you received for the unit(s).

Contact

For enquiries on the U.S. Financial Aid program contact:

International Compliance and Scholarships
Deakin International
Deakin University
221 Burwood Highway
Burwood Victoria 3125

Email: financial-aid@deakin.edu.au

Glossary U.S. Financial Aid terminology

Accrued Interest
If you choose not to make interest payments while in university, in your grace period, or during an authorized period of deferment, the interest will accumulate, and be added to your principal amount at repayment.

Award Year
The 12-month period during which you attend university and for which your aid has been awarded.

Cohort Default Rate
The percentage of a university’s Stafford borrowers who default before the end of the fiscal year in which they entered repayment on their loans. The U.S. Department of Education calculates this rate annually to determine the default experience of students who attended a particular university during a particular period of time. High default rates can result in the loss of a university’s ability to participate in the FFELP.

Cost of Attendance (COA)
The expenses relating to your attendance at university, which include tuition, accommodation, books and supplies, fees and other living costs. The COA is determined by the University, using federal guidelines.

Default
The failure of a borrower to make instalment payments when due or to meet other terms of the promissory note or other written agreement(s) with the lender under circumstances where the guarantor of the loan reasonably concluded that the borrower no longer intended to honour his/her obligation to repay a loan, provided that this failure persists for the most recent consecutive 270 day period or the most recent 330 day period.

Deferment
A period during which repaying loan principal is suspended as a result of the borrower meeting one or more of a number of situations or categories established by law. The borrower does not pay interest on subsidized loans during deferment; interest continues to accumulate during deferment of an unsubsidized loan.

Delinquency
The failure of a borrower to make a monthly payment within 30 days of the due date.

Disbursement
The lender's payment of loan funds to the University. Payment is made by cheque. Disbursement is usually made in two instalments during the year and is co-payable to the University and student.

Estimated Financial Assistance (EFA)
The amount of financial assistance from federal, state, institutional or other sources that a student (or parent on behalf of a student) will receive for a period of enrolment. This may include, but not limited to, scholarships, grants and financial need-based employment.

Expected Family Contribution (EFC)
The amount that a student and family (if required) are expected to contribute toward the Cost of Attendance (COA). This amount is based on the student’s or the family’s income and assets.

Federal Family Education Loan Program (FFELP)
Program made up of Federal Stafford Loans (Subsidized and Unsubsidized), Federal PLUS loans (for parents) and Federal Consolidated Loans. All of these are long-term loans insured by state or non-profit guarantee agencies that are reimbursed by the U.S. government for all or any part of insurance claims paid by lenders.

Federal PLUS Loan (PLUS)
Parents may borrow this FFELP loan on behalf of their undergraduate, dependent children. Loans are made by lenders such as banks, credit unions, or savings and loan associations. Parents must not have an adverse credit history.

Federal GRAD PLUS Loan
Graduate or professional students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance in both the FFEL and Direct Loan Program. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS loans.

Federal Stafford Loan (Subsidized)
A FFELP loan that provides federally subsidised, low interest loans to students in undergraduate, postgraduate or professional programs. Subsidized loans are awarded on the basis of financial need.

Federal Stafford Loan (Unsubsidized)
A FFELP loan that provides low interest loans to students in undergraduate, postgraduate or professional programs. Unsubsidised loans are not awarded on the basis of financial need.

Financial Need
The difference between the student’s Cost of Attendance (COA) and the Expected Family Contribution (EFC) plus the student’s Estimated Financial Assistance (EFA).

Forbearance
The process by which a repayment schedule can be restructured under certain conditions. The amount of the monthly payment may be temporarily reduced or suspended, or months may be added to the repayment term. You must contact your lender directly to receive forbearance.

Free Application for Federal Student Aid (FAFSA)
The form used by universities for the awarding of federal student aid. Information in the FAFSA is analysed according to U.S. deferral guidelines together with Deakin University guidelines to determine your family’s financial situation.

Guarantor
The person or agency which verifies your eligibility for a particular federal loan program and provides the insurance for those loans.

Grace Period
A feature of Federal Stafford loans that gives you six months after you leave university or drop below half-time status before you must start making monthly payments on your loan.

Interest
The fee that is charged by the lender in exchange for lending the money. The interest rate, usually expressed as a percentage of the loan amount, may stay the same for the term of the loan (fixed rate) or it may change periodically (variable rate).

Master Promissory Note (MPN)
A legally binding document between the borrower and the lender that obligates him or her to repay the loan according to its terms.

Principal
The amount borrowed. This is the amount to which interest is charged.

Satisfactory Academic Progress
The achievement of required Grade Point Average (GPA) within the defined timeframes, to ensure continued access to Financial Aid.

Servicer
A company contracted by a lender to handle the administrative aspects of the loan such as collection of payments and correspondence with borrowers.

Student Aid Report (SAR)
The report sent directly to a student that summarises information submitted on the student’s FAFSA. It also provides financial-need calculations, including the student’s EFC based on submitted figures.