Frequently Asked Questions and Glossary of Financial Aid Terms

What is a student’s Cost of Attendance?
A Cost of Attendance (COA) is established to help determine the maximum amount of aid necessary to fund educational expenses. It is also knows as the student’s “financial aid budget.” Calculations include, but are not limited to accounting for residence, degree programs, enrollment levels, and other criteria.

How does a COA determine my financial aid eligibility?
A student’s COA designates the maximum amount of aid that can be received from all potential sources (scholarships, grants, loans, etc).

How can my enrollment affect my COA?
There is a pro-ration of costs based on enrollment changes, when students move from at least half-time to less than half-time and vice-versa.  This change will adjust the cost of enrollment and therefore directly affects the COA.

Why was my COA different last year, if nothing changed?
A student’s COA is adjusted annually to reflect cost-of-living increases, tuition, food, and housing, etc.

If I need more aid can I change my COA?
No. Once your enrollment level reaches full-time in your program of study, you automatically have the maximum budget possible for your degree.

What is a Program of Study/Degree Completion Plan (as defined for financial aid purposes)?

A Program of Study, or more commonly known at Liberty as your Degree Completion Plan (DCP), is a comprehensive list of the courses that are approved and required to complete your degree. Specific courses are outlined on the electronic DCP and in the DCP Audit. In order for a course to be covered by financial aid, it must be required by your DCP. Courses that are not required by the DCP are not eligible for financial aid. Please see the Courses in Program of Study (CPOS) policy for questions about specific classes.

What types of financial aid are impacted by this?

All federal aid (Pell Grant, Supplemental Educational Opportunity Grant (SEOG), TEACH Grant, Direct Student Loans, Direct PLUS Loans, and Work-Study) Some state and institutional (Liberty) aid may be impacted as well, such as the Virginia Tuition Assistance Grant (VTAG) and Liberty scholarships.

How does this affect my cost of attendance (COA)?

If you are enrolled in courses that are required by your Degree Completion Plan (DCP), then they will be counted as enrollment for determining your financial aid eligibility. For example, if you’re enrolled in 12 credit hours that are required by your DCP as an undergraduate student, you’d be considered as enrolled and budgeted as a full-time student. Likewise, if you are enrolled in 6 credit hours that are required by your undergraduate DCP and 6 credit hours that are not required by your DCP, you’d be considered as enrolled and budgeted as a half-time student. This directly impacts your financial aid.

How are courses checked/reviewed to see if they apply to my DCP?

The University runs a daily report process to evaluate your eligibility based on your declared program of study. If you are enrolled in courses that don’t apply to your DCP, you’ll hear directly from us via email to your Liberty email account. You can also check your enrollment and compare it to your DCP in the DCP Audit.

What happens if I’m in classes that don’t apply to my DCP?

Your financial aid will be adjusted to only cover eligible courses. If there is still time to register, we will do what we can to help you adjust your schedule to include eligible courses, and then change your aid to match your new eligible enrollment. Please see the academic calendar for registration deadlines on the Residential and Online Academic Calendars.

How will repeated coursework be affected? 

Once you have earned a grade of ‘D’ or higher for a course on your DCP, you can only repeat the course one more time and use financial aid to pay for the course. If you pass the course the first time and fail the course the second time, you cannot retake the course again and use financial aid to pay for another repeat attempt. Please see Liberty’s official repeat policy.

How do I declare a major/minor to ensure my courses are eligible for financial aid?

If you are a residential student, you will need to visit the Change of Major online request form to declare or change your major/minor. If you are an online student, you will need to contact Liberty University Online Academic Advising at luoadvising@liberty.edu.

Where can I find the Degree Completion Plan Audit tool?

You can easily access the Course Registration Tool through the myLU portal.

Are my “disbursement” and my “refund” the same thing?
No. A disbursement is the process by which the funds are sent from the lender to Liberty University.  Please see the definitions for disbursement and refund in the Glossary of Terms.  Also, students can review the “How Disbursements Work” webpage for more details. A refund is sent to BM Technologies, Inc. if a credit exists after all charges have been paid on the student’s account.  Please visit the Student Accounts refund homepage for more information.

How do I know when my aid will disburse?
The first disbursement for each sub-term is made 21 days after a student is eligible. For more information, please visit our “How Disbursements Work” webpage.

What if I decide I don’t want the loans?
Reducing or canceling loans is a very simple process. Borrowers who have not received a refund from a loan credit balance and wish to reduce or cancel the loan disbursement or a future loan prior to disbursement should complete the electronic Federal Student Loan Change Form. The form will help guide you through the best option for you depending on what you want to do, whether reducing or canceling your loan.

What is it?
FAFSA is the Free Application for Federal Student Aid and can be completed easily on the web at https://studentaid.gov/. The application is maintained by the U.S. Department of Education and will evaluate a family’s ability to help in paying for educational costs and determine federal aid eligibility. Students must complete a FAFSA annually prior to being eligible for any federal or Liberty-provided aid.

How do I apply? The fastest and easiest way to apply is online at https://studentaid.gov/. Be sure to have the requested tax information nearby and your FSA ID username and password.

What is involved in the application process?
Students will sign in with their FSA ID username and password on https://studentaid.gov/. Follow the steps to fill out basic demographic information, and submit the requested financial information. Don’t forget to add Liberty’s school code (010392). Once this is completed, submit the form by signing with the FSA ID. The FAFSA submission will be sent to Liberty University automatically.

Can anyone other than my parents be the “contributor” to my FAFSA?
No, unless your grandparents, foster parents, legal guardians, siblings, and aunts and uncles have legally adopted you, they cannot be considered contributors to your FAFSA—even if they helped provide for or raise you.

Whose information should I use if my parents are divorced?
The U.S. Department of Education provides information in assisting with special family situations at https://studentaid.gov/.

How long does it take to process?
The Financial Aid Office processes FAFSA transactions daily, year-round.  New electronic FAFSA transactions arrive at Liberty electronically approximately 2-4 days after they have been completed by the U.S. Department of Education. Paper FAFSA transactions are processed within 8-12 days.

What is the difference between a dependent student and an independent student?
Check out this information on dependency status from the U.S. Department of Education.

What is an Institutional Student Information Record (ISIR) Reject?
An ISIR Reject is a FAFSA application that the U.S. Department of Education considers incomplete or incorrect. Common reject reasons:

• Name on the ISIR does not match the social security number (SSN)
• Missing signature/s (FSA ID for students and/or parent missing)
• If the social security number (SSN) is incorrect

What is a Comment Code (C-Code)?
A C-Code reflects there is an issue with a student’s FAFSA data. Some C-Codes can be solved by students correcting basic FAFSA questions. Other C-Codes require the student to send documentation to the Financial Aid Office. Common C-Codes relate to citizenship, incorrect name and/or date of birth, aggregate loan issues, etc. The necessary documents, if requested will display in your Student Checklist.

What is it?
The FSA ID is a username and password that has replaced the Federal Student PIN previously used to access federal student aid online sites.

Why do I need one?
Students and FAFSA contributors will need an FSA ID to be able to log in, complete, or make corrections, and sign a FAFSA using https://studentaid.gov/. Students and other FAFSA contributors should not share or provide their FSA ID login information to one another.

How do I apply?
You may create your FSA ID online.
You will be prompted to create a login username and password and provide some basic personal information in order to keep the account secure.

What do I do if I am having issues with my FSA ID?
Please visit the FSA ID Frequently Asked Questions page to find help for some common issues with setting up your FSA ID. You may also contact the U.S. Department of Education for assistance by phone at 1-800-557-7394 or by email at studentaid@ed.gov.

What is it?
Please visit the Registrar’s Office FERPA page for additional information.

What is a Financial Aid Offer?
A financial aid offer is a list of all the aid a student could potentially receive and provides instructions or links to information that explains what you must do to check eligibility for the individual types of aid. Changes can occur regularly, so students should check the SSB – Financial Aid module.

What do I do with it?
Students should look at each item listed on the financial aid offer and follow the instructions listed to do to secure the funds the student would like to receive.

Are the “offers” guaranteed funds?
None of the amounts are guaranteed. They are calculated based on the information from the student’s submitted FAFSA. If any of the information changes (grade level, Financial Aid Satisfactory Academic Progress, etc.), students should expect a new financial aid offer that reflects changes in eligibility. Some items on the financial aid offer require additional action, such as filling out an application for a grant or scholarship.

Can I see this information online?
Yes; log into myLU, choose the SSB – Financial Aid module, select “Offer,” and choose the applicable aid year to see the current financial aid offer.

Liberty University is committed to using the Principles & Standards of the College Cost Transparency Initiative in its student financial aid offer.

What is Financial Check-In (FCI)?
It is a process during which the student commits to attending Liberty University by entering into a financial agreement.  Visit our Financial Check-In page for more information. You can also view our FCI tutorial videos for online and residential students.

Why do I need to complete FCI?
Committing to attend through the Financial Check-In process reserves your spot at Liberty, reserves your spot in the classes you registered for, and, subsequently, lets you submit housing and meal-plan choices for Resident students. For Liberty University Online students, completing Financial Check-In by the deadline will ensure you maintain your registered schedule each term.

Where do I go to complete FCI?
Go to Financial Check-In and log in to complete FCI.

What grants are available?
The U.S. Department of Education offers various grants to assist students in paying for post-secondary education. All students must have a completed FAFSA on file to be considered for federal grants, and once Liberty receives the FAFSA, eligibility will be assessed.  Liberty University also processes state grants, which are noted below.  View additional details on our grants page.

• Federal Pell Grant
• Federal Supplemental Education Opportunity Grant (FSEOG)
• Federal TEACH Grant
• Virginia Tuition Assistance Grant (VTAG)
• Liberty Supplemental Grant
• Liberty Undergraduate Scholars Grant
• Virginia Two Year College Transfer Grant (CTG)

What are the criteria for the Liberty Supplemental Grant and offered amounts?

• Students must use their full Federal Direct Subsidized student loan
• The grant is offered based on a student’s Student Aid Index (SAI), as determined by the FAFSA.
• The grant amount remains at the same initial amount each year and is based on the student’s first year SAI, regardless of future SAIs.

Note: It is in the best interest of every student to borrow as little as absolutely necessary. All loans must be repaid and generally will have interest on the loan to repay as well.  For additional tools for smart borrowing, visit this financial literacy webpage.

What is my eligibility for loans?
Federal loan eligibility is determined by a number of factors including, but not limited to the FAFSA, a student’s cost of attendance, and a student’s previous borrowing history.  Estimated loan amounts are listed on the financial aid offer and in the SSB – Financial Aid module.

How do I apply for loans?
Students must have a completed FAFSA on file to have federal loan eligibility reviewed. Visit our loans homepage for the steps to complete the entrance counseling and master promissory note for federal loans. Review private loan options on ELM Select.

What can affect my eligibility?
View our comprehensive list of factors that can affect loan and other financial aid eligibility.

How do I know when I must repay my loans?
Generally speaking, students have six months after graduating, withdrawing, or not returning to school to begin making payments on federal student loans. Loan applications will include a loan disclosure statement with repayment information. Every student should read the entire disclosure prior to finishing the loan application because it may include repayment rates, terms, and conditions. Borrowers should contact their lender for additional information on loan repayment.

I was automatically packaged with my loans split among the  Fall/Spring/Summer terms; how can I change my loans to only be split Fall/Spring only?
Students planning to attend Fall/Spring only should submit a Loan Change Request Form. NOTE: Reducing terms to Fall/Spring only does NOT necessarily increase loan amounts/eligibility.

How can I see the Federal Student loans that I have already taken out?
This information is tracked by logging into your account at StudentAid.gov.

What is it?
SAP stands for Satisfactory Academic Progress. It is the evaluation Liberty’s Financial Aid Office runs at the end of every term to ensure students are maintaining financial aid satisfactory academic progress for federal/institutional aid eligibility.

What happens if I’m on SAP suspension?
Federal and institutional aid are automatically canceled for all students on financial aid suspension.

How can I get off suspension?
Students on suspension may submit a Financial Aid SAP Appeal Form and upload professional third-party documentation at the same time, if required.  Third-party documentation cannot come from friends, family, or Liberty University staff/faculty. More details about what is accepted will be provided on the appeal form.

Once I have submitted my appeal, how long does it take to review?
Approximately three to four days once all requested documentation is shown as “received.”

How will I know if my appeal was granted?
The Financial Aid Office will email every student on the outcome of the financial aid appeal.  Students can also check the SSB – Financial Aid module for real-time status.

What is the difference between Financial Aid Academic Suspension and Institutional Academic Suspension?
The U.S. Department of Education designates minimum financial aid academic progress guidelines. Institutional Academic Suspension is assessed by Liberty University’s academic departments. Resident students should contact College Success Services (CSS) and Liberty University Online students should contact online advising for institutional academic suspension reviews.

How can I get my financial aid reinstated after my appeal has been granted?
If an appeal is granted, the Financial Aid Office automatically reinstates aid within two to three weeks. Students can check their SSB – Financial Aid module for updates and will likely receive an updated financial aid offer emailed to their LU email account.

What Liberty University scholarships are available?
View a list of scholarships.

How do I find outside scholarships?
Students should utilize search engines like Google to find outside scholarships. Every student and parent should be very careful to avoid scholarship scams. Students with outside scholarships must notify the Financial Aid Office so we can properly account for your aid.

What is it?
Verification is a process in which the U.S. Department of Education has selected a student to confirm the information submitted on the FAFSA with Liberty University.

What do I have to do?
Students selected for Verification should submit copies of each document requested from the Financial Aid Office, including a signed and completed electronic Independent or Dependent Verification Form. The form will be located in your Student Checklist if a student needs to complete it. Students can check the status of sent documents in their Student Checklist as well.

What if I don’t want to complete Verification?
Verification must be completed to receive any federal or institutional aid. Students who choose to not complete Verification are not eligible for federal or institutional aid.

What if I did not file taxes?
FAFSA Verification: Students who did not file taxes must submit a confirmation of non-filing from the IRS unless they are a dependent student. Acceptable documentation can be obtained online using the IRS Get Transcript service or by completing IRS Form 4506-T Request for Transcript of Tax Return, checking box 7, and mailing it to the IRS. If these items cannot be obtained, any document from the IRS confirming non-filing is acceptable.

How can I check the status of my Verification?
Once all requested documentation is shown as received, the account will be reviewed. Students should monitor their Student Checklist and their email account to verify the status of Verification.

What is a complete withdrawal?
A complete withdrawal is when a student ceases attendance from all enrolled courses after attending the courses.

What is a partial withdrawal?
A partial withdrawal is when a student ceases attendance from one or more, but not all, of the courses enrolled during any term after attending the course/s.

How can a withdrawal affect my financial aid?
Courses from which a student ceases attendance or receives a grade of incomplete will not be considered satisfactorily completed. The courses, which will be considered courses attempted but not completed, may negatively affect eligibility for the next term. Additionally, they will factor into the measurement for the maximum time frame in financial aid satisfactory academic progress calculations.

What is the difference between a drop and a withdrawal?
For financial aid purposes, students can only drop a course prior to the course beginning. Once the course has begun, the change would be considered a withdrawal.

How is eligibility for work-study determined?
Information from the FAFSA determines eligibility for federal work-study.  Students must indicate they are interested in federal work-study on the FAFSA.

What does it mean?
Students that are considered eligible for federal work-study have an opportunity to work in this program while in school. For additional details, visit the Federal Work-Study homepage.

What do I do, now that I’ve been approved?
If an approved student is interested in federal work-study, they must submit an application with Human Resources.  Students can view a list of available positions at www.liberty.edu/hr.  If a hiring supervisor hires the student, the Financial Aid Office will process the request and aid will pay as it is earned.

I said “yes” to work-study on my FAFSA, but it’s not part of my Financial Aid Offer. Why not?
Students who indicated an interest in federal work-study on the FAFSA, but do not see it on the financial aid offer are either ineligible or the limited funding from the U.S. Department of Education has been exhausted for the year.

The interest on a student loan that begins to accrue (accumulate) after a student completes school. This interest is charged on the principal (dollar) amount of the loan.

A document provided by the school, informing the applicant of the estimated amount of assistance for which the student is eligible; this offer could include scholarships, grants, work-study, and/or loans. The student must indicate to the school which, if any, of the items available he/she wishes to accept. Any changes in financial situation, address changes, etc. after the student has filled out the FAFSA must be reported to the school. The financial aid offer is valid only for the upcoming year unless otherwise noted.

Person responsible for repaying a loan who has signed and agreed to the terms in the promissory note.

Adding accumulated interest to the loan principal rather than having the borrower make monthly interest payments. Capitalizing interest increases the principal amount of the loan and, therefore, the total cost of the loan.

Borrowers who enter repayment in a given fiscal year.

Consolidation occurs when a borrower with multiple loans requests that all of his or her loans be consolidated into one loan. Repayment begins 60 days after discharge of prior loans; certain deferments are authorized.

Allowances for the following expenses that the student may incur: tuition, food and housing, fees, books, travel, miscellaneous, and loan fees. The total amount of a student’s financial aid cannot exceed the Cost of Attendance (COA). This is also known as the student’s “financial aid budget.”

Cost of Attendance Allowance Definitions

Living Expenses (Food and Housing): An allowance for food and housing costs, as determined by the institution, to be incurred by the student attending the institution on at least a half-time basis, including:

• A standard food allowance that provides the equivalent of three meals each day, regardless of whether a student chooses institutionally owned or operated food services (i.e., board or meal plans). Institutions must provide an allowance for purchasing food off campus for a student that does not elect institutionally owned or operated food services.
• Housing allowances for students residing in institutionally owned or operated housing with or without dependents must be based on the average or median amount assessed to such residents for housing charges, whichever is greater.
• Housing allowances for students living off-campus must include rent or other housing costs.
• For dependent students living at home with parents, institutions must include a reasonable standard allowance for living expenses that are not zero.
• For students living in housing on a military base or for which they receive a basic allowance under section 403(b) of title 37, United States Code, institutions must include a reasonable allowance for food on-campus or off-campus but cannot include housing costs
• For all other students, institutions must include a reasonable allowance based on expenses incurred by such students.

Fees: Along with tuition, an amount normally assessed a student carrying the same academic workload, as determined by the institution.

Loan Fees: An allowance for the cost of any Federal student loan fee, origination fee, or insurance premium charged to the student or the parent of the student. The allowance may be actual or average costs, as appropriate; and may not include the cost associated with non-Federal loans.

Books, Course Materials, Supplies and Equipment: An allowance for books, course materials, and equipment, which must include all such costs required of all students in the same course of study, including a reasonable allowance for the rental or upfront purchase of a personal computer, as determined by the institution.

Personal/Miscellaneous Expenses: An allowance, as determined by the institution, for a student attending the institution on at least a half-time basis.

Transportation: An allowance, as determined by the institution, which may include transportation between campus, residences, and place of work.

Failure to repay a loan in accordance with the terms of the promissory note.

The temporary postponement of loan payments. Review our Deferred Corporate Tuition Assistance Program webpage.

Incidents of late or missed loan payments, as specified in the terms of the promissory note and the selected repayment plan.

A student that is financially dependent upon a parent or legal guardian or a student who does not meet certain criteria from the U.S. Department of Education for being classified as independent (see Independent Student).

The process in which the school pays funds directly to the student’s school account from either internal or external aid sources, which is different from a refund.  Aid sources include scholarships, grants, loans, and other aid.

The release of a borrower from their obligations to repay their loans.  Borrowers must meet certain requirements to be eligible for discharges.

An informative online session for first-time loan borrowers. It ensures that students know they are borrowing funds for their education and that they are expected to repay the loans. Review our Student Loans webpage.

An informative online session for students who cease to maintain at least half-time enrollment whether by graduation or withdrawal. The session outlines the amount of money in loans the student owes and the available repayment options. Review our Student Loans webpage.

A plan that requires the borrower to pay at least $50 a month and allows up to 30 years to repay, depending on the amount borrowed. Check out Federal Student Aid’s webpage.

Previously known as the Student Aid Report, the FAFSA Submission Summary is the student’s output document providing a summary of data input on the FAFSA form.

The William D. Ford Direct Loan Program, also referred to as the Direct Loan Program, is a federal program that was authorized under the Student Loan Reform Act of 1993. FDLP provides low-interest loans to students. These loans were originated by participating institutions with capital provided directly through the U.S. Department of Education, which is the sole lender. Several loan programs existed under the umbrella of FDLP. These loans were the Stafford Subsidized loan program, the Stafford Unsubsidized loan program, the Parent Loan for Undergraduate Students (PLUS), and Consolidation loans. Check out our Student Loans webpage.

The Federal Family Education Loan (FFEL) Program is formerly known as Guaranteed Student Loans (GSL).  Loan funds were provided primarily by commercial lenders, but principal and interest were guaranteed by the federal government through federally-funded guarantee agencies. The same loan programs that existed under FDLP also existed under FFEL: the Stafford Subsidized program, the Stafford Unsubsidized program, the Parent Loans for Undergraduate Students (PLUS), and Consolidation loans. Check out our Student Loans webpage.

Federal money that does not have to be repaid; based on the student’s Student Aid Index (SAI)  and cost of attendance. Pell Grant is only offered to qualifying undergraduate students. Check out our Grants webpage.

Students, parents, and borrowers are required to use an FSA ID, made up of a username and password, to access certain U.S. Department of Education websites. Your FSA ID is used to confirm your identity when accessing your financial aid information and electronically signing your federal student aid documents.

The data and information related to federal tax paying. It includes a return or return information received directly from the IRS or obtained through an authorized secondary source such as the U.S. Department of Education. FTI also includes any information created by the recipient that is derived from a federal return or return information received from the IRS or obtained through an authorized secondary source. Other return information considered FTI includes the following:

• Taxpayer’s name; mailing address; identification numbers including Social Security number or employer identification number
• Any information extracted from a return, including names of dependents or the location of a business
• Information on whether a return was, is being, or will be examined or subject to other Investigation or processing
• Information contained on transcripts of accounts
• The fact that a return was filed or examined
• Investigation or collection history
• Tax balance due information

A federal grant available to undergraduate students with exceptional financial need. Priority is given to students receiving the Federal Pell Grant with a zero or negative zero SAI  at Liberty University. Check out our Grants webpage.

A system that receives, stores, uses, and controls individual FTI received from the IRS for federal financial aid eligibility determination.

Provides part-time jobs for undergraduate and graduate students who have financial need as established by the FAFSA. Check out our Federal Work-Study webpage.

See Federal Education Loan Program

See Federal Education Loan Program

Students must meet Financial Aid Satisfactory Academic Progress (SAP) requirements to receive federal Title IV aid that includes the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study, Federal TEACH Grant, and Federal Direct Education Loans (Subsidized, Unsubsidized, Parent PLUS, and Grad PLUS).  Liberty University also applies the SAP requirements to monitor eligibility for all institutional aid. The Virginia Commonwealth programs are administered under the guidelines from the State Council of Higher Education for Virginia (SCHEV). Check out our Financial Aid Policies webpage.

The process in which students make arrangements to meet their financial obligations to Liberty University for a specific term of enrollment. More information regarding Financial Check-In can be found on this page and these videos: Online and Resident.

A financial application that the U.S. Department of Education uses to determine student’s federal financial aid eligibility. Liberty requires that this application be filed if you are to receive any institutional aid. Check out the Federal Student Aid webpage to apply.

The system that has replaced the IRS Data Retrieval Tool (DRT) to transfer an individual’s Federal Tax Information (FTI) to the Department. FA-DDX allows the Department to request, and the IRS to transfer, FTI to the FTIM system for use in determining a student’s federal financial aid eligibility. For more information see Federal Tax Information Module (FTIM) definition above.

A six-month period before the first payment must be made on a Federal Direct student loan. The grace period starts the day after a borrower ceases to be enrolled at least half-time.  During the grace period on an unsubsidized loan, accumulating interest must be paid or it will be capitalized.

A Liberty University student pursuing a degree beyond a bachelor’s (four-year) degree.

A plan that allows monthly payment amounts to start out at one level and then increase every two years during the repayment period. Borrowers have up to 30 years to repay, depending on the amount they borrowed. The minimum payment must cover the interest that accumulates monthly and must be at least half of the payment that would be required under the Standard Repayment Plan. The maximum amount may not be more than 1-1/2 times the payment that would be required under the Standard Repayment Plan. Check out the Federal Student Aid webpage.

Financial aid from the federal or state government, which does not have to be paid back. Grants from the federal government are generally need-based. Grants from the state government are generally given to students attending an in-state school that is not state-funded. Check out this video for more information about grants. Check out our Grants webpage.

A state or private non-profit agency that has an agreement with the U.S. Secretary of Education to administer the FFEL Program. The agency ensures lenders against losses due to a borrower’s default.  Also called “guarantor” or “guaranty agency.”

A student who is carrying an academic workload that is considered at least one-half of the workload of a full-time student (as determined by the school). Check out our Student Loans webpage.

The Higher Education Act is the law that authorizes most of the federal programs that relate to financial aid for college.

A federal student loan repayment option beginning July 1, 2009, that caps monthly payments based on the borrower’s income, with any amounts remaining after 25 years forgiven. Check out Federal Student Aid’s webpage.

Available only in the FDLP, this plan allows the monthly payment amounts to vary with the borrower’s income, with any amount remaining after 25 years forgiven. Check out Federal Student Aid’s webpage.

A plan that allows the monthly payment amount to vary with the borrower’s income, except that all principal and interest must be fully repaid within 25 years. Check out Federal Student Aid’s webpage.

A student who meets one of the following criteria: the student is 24 years or older, a graduate or professional student, married, orphaned or a ward of the court, veteran of the armed services, or has documents describing circumstances of independence. (See Dependent Student).

Under the Federal Direct Subsidized loan program, the period during which the borrower pursues his or her studies as an at least half-time student at a participating school. This period begins with the date of disbursement and ends with the beginning of the grace period.  During the in-school period, borrowers are not charged interest (in FFEL, the federal government pays lenders interest benefits and special allowances).

A loan expense charged by the lender and paid by the borrower for the use of borrowed money. The expense is calculated as a percentage of the principal amount (loan amount) borrowed.

Under the Federal Direct Subsidized loan program, the government pays a borrower’s interest payments during the in-school and grace periods, and during any authorized deferment periods.

When other collection efforts fail, the U.S. Department of Education turns over a defaulted borrower’s account to the Internal Revenue Service (IRS). The IRS offsets the debt against the defaulter’s income tax refund.

Financial aid that must be repaid. Loans may have a variety of repayment methods. Learn more about loans in this helpful video, and check out Federal Student Aid’s webpage.

Limits placed on student borrowers in terms of the maximum number of dollars they may obtain through federally funded student financial assistance programs. Loan limits vary by loan type, academic level, program length, and whether a student is dependent or independent. Check out Federal Student Aid’s webpage.

The total sum of money borrowed.

Loans that have entered the repayment period after the expiration of the grace period. Check out Federal Student Aid’s webpage.

A legally binding contract between a lender and a borrower, that contains the terms and conditions of the loan, including how the loan is to be repaid. Learn more on our Direct Loans Q&A webpage.

A fee charged and deducted from the proceeds of a loan before the loan is disbursed. In the federal loan programs, the origination fee is paid to the government to offset its costs. Check out Federal Student Aid’s webpage for more information.

Federal Parent Loans for Undergraduate Students (PLUS). Loans taken out by parents for the purpose of helping to pay for their children’s undergraduate education. Parents are responsible for all interest charges. The loan value may not exceed the full cost of the student’s education, minus any other financial aid that the student receives. Check out Federal Student Aid’s webpage for more information.

Any amount paid on a loan by the borrower before it is required to be paid under the terms of the promissory note. There is never a penalty for prepaying principal or interest on federal student loans.

A program for federal student loan borrowers that forgives remaining debt for people who work in non-profit, government, and public service jobs after ten years of qualifying payments. Check out Federal Student Aid’s webpage for more information.

The process of paying a student from a credit balance present on the student’s account according to the preference the student provided during Financial Check-In. In all cases, credit balances generated from a Federal Parent PLUS loan will refund to the parent, unless otherwise authorized by the borrower (a refund is not the same as a disbursement).

When twelve consecutive payments have been made on a formerly defaulted loan, it can become a rehabilitation loan. Once a loan becomes rehabilitated, it becomes a new loan. A borrower again becomes eligible for participation in federal financial aid programs.

Monies the federal government gives a guarantee agency as reimbursement for payments made to lenders for losses due to borrower default.

The period for which the borrower is responsible for repaying his or her loan. In the case of Federal Direct student loans, this period begins on the day after the last day of the grace period. In the case of PLUS loans, this period begins on the day the loan is disbursed. The maximum repayment period is ten years, not including any authorized deferment or forbearance periods. Check out Federal Student Aid’s webpage for more information.

A statement provided to the borrower that lists the amount borrowed, the number of monthly payments, and the date payments are due. Check out Federal Student Aid’s webpage for more information.

A formal evaluation of a student’s approximate financial resources to contribute toward their post-secondary education for a specific award year. The Student Aid Index was previously known as the Expected family Contribution (EFC), prior to the 2024-25 academic year.

Financial aid that does not have to be repaid. Scholarships may be received from Liberty University or an external organization. In order to be eligible for Liberty scholarships, the student must have a complete FAFSA on file annually. Check out our Scholarships webpage for more information.

A quarterly supplemental interest payment to lenders based on the outstanding principal balance of Federal Direct, PLUS, and Consolidation loans. This payment assures that, as a complement to the borrower’s interest rate, the lenders receive a guaranteed yield on their loans even when interest rates change.

A federally subsidized student loan made on the basis of the student’s financial need and other specific eligibility requirements. Subsidized loans have subsidized interest, which means that the federal government covers the interest on these loans while borrowers are enrolled at least half-time, during the six-month grace period following graduation, or during authorized periods of deferment. Subsidized loans are available to undergraduate students while the student is in school. The borrower begins to repay the principal and interest after leaving school.Check out our Student Loans webpage for more information.

These loans are made to borrowers meeting specific eligibility requirements. Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal). Check out our Student Loans webpage for more information.

A repayment schedule that allows up to ten years to repay student loans, with a minimum monthly payment of $50 a month. This is the default repayment plan for unconsolidated federal student loans, although borrowers can choose other plans. Check out Federal Student Aid’s webpage for more information.

The portion of the Higher Education Act (see HEA) that includes most of the federal financial aid programs.

A Liberty University student who has not yet completed a bachelor’s (four-year) degree.

Rate of interest on a loan that is tied to a stated index and changes annually every July 1 as the index changes.

The process of confirming the accuracy of the information reported on the FAFSA with the U.S. Department of Education. Check out this video to learn more about the verification process at Liberty University.

A non-need based grant for full-time Virginia residents who have permanently resided in Virginia for at least one year. Students must also be enrolled in an eligible degree program. Check out our Virginia State Aid webpage for more information.