Cost of Attendance (COA): The total estimated amount it will cost a student to attend school. The cost of attendance includes tuition, fees, books and supplies; a moderate estimate of housing, transportation and living expenses. Financial aid resources cannot exceed PhoenixLaw's established cost of attendance.
Deferment: For federal student loans, a period of time in which loan payments do not have to be made and on subsidized loans, interest does not accrue. Depending on the loan program, students may be granted deferments for many reasons, such as returning to school, economic hardship, or disability.
Expected Family Contribution (EFC): The EFC is calculated with a needs analysis formula that uses information reported on the FAFSA. The figure is the total amount the student and family are expected to contribute to the student's education for the academic year. This figure is used to determine the student's eligibility for financial aid.
Federal Stafford Loan Master Promissory Note (MPN): This form is required for all first-time PhoenixLaw borrowers applying for Federal Stafford Loans. A promissory note is the legal agreement a student signs with a lender accepting student loan funds. The MPN states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy and cancellations.
Federal GradPLUS Loan Master Promissory Note (MPN): This form is required for all first-time PhoenixLaw borrowers applying for Federal GradPLUS Loans. A promissory note is the legal agreement a student signs with a lender accepting student loan funds. The MPN states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy and cancellations. If you have a co-signer, you will need to complete a new application and promissory note each year.
Forbearance: An approved time period when a borrower is willing, but financially unable, to make required payments on a federal student loan. Payments can be temporarily postponed, payment due dates can be extended, or smaller payments than were previously scheduled can be accepted.
Free Application for Federal Student Aid (FAFSA): This must be completed when students apply for Federal Stafford Loans. This should be completed online at www.fafsa.ed.gov once submitted, the processor will send the information electronically to PhoenixLaw, they will also send a Student Aid Report (SAR) to the student.
Grace Period: The period between the time a borrower withdrawals, drops below half-time or takes a leave of absence and the time they are obligated to begin repaying their loans. Federal Stafford Loans offer a 6-month grace period.
Guarantee Agency: An agency which acts as an intermediary for the federal government in providing guarantees to repay lenders if FFELP loan borrowers default.
ISIR: The ISIR (Institutional Student Information Record) is the official federal electronic document that provides a student's Expected Family Contribution (EFC) as calculated by the Central Processing System (CPS). It includes all the data submitted by the student on the FAFSA.
Lender: A financial institution that provides the funds for students to borrow educational loans.
PhoenixLaw Application: The Financial Aid Application must be completed & submitted to the Financial Aid office for any type of financial aid.
Student Aid Report (SAR): A summary of the information included in the FAFSA. The SAR will also indicate Pell Grant eligibility, if any, and the Expected Family Contribution (EFC). The student will receive a copy of your SAR four to six weeks after the FAFSA has been filed.
Verification Form: If a student is required to certify the accuracy of the information on the FAFSA, they will need to complete a process called verification. Paperwork will be sent to the selected students along with instructions; this must be completed prior to receiving federal aid.
