Federal Grants
Glossary of Terms
Federal Direct Student Loan Program (FDSLP): Stafford, PLUS, or consolidated loans that a student obtains directly from the federal government.
Federal Supplemental Educational Opportunity Grants (FSEOG): government grants administered through each school’s financial aid office
Federal Family Education Loan Program (FFELP): a program in which private lenders, with the backing of the federal government, offer PLUS or consolidated loans to students
Forbearance: a specified amount of time in which a loan does not need to be paid back; usually used by students who don’t qualify for deferment but are unable to make loan payments
Guaranteed Student Loan: more commonly known as the Stafford Loan
Income Contingent: a loan repayment schedule based on the borrower’s ability to pay
Loan Dismissal: also known as cancellation or forgiveness; a situation in which a loan no longer needs to be paid back; almost always based on very specific and limited circumstances
Pell Grant: need-based type of federal financial aid that does not need to be paid back; only available to undergraduate students
Pell Grant Index (PGI) Number: an index number appearing on your Student Aid Report (SAR) that determines the amount of Pell Grant money to be included in your financial aid package; the number is the result of a series of calculations based on your SAR
Perkins Loan: a low-interest, need-based loan given by schools; payback begins nine months after a student leaves school
Parents’ Loans for Undergraduate Students (PLUS) Program: given by the same financial institutions that give Stafford Loans
Promissory Note: a legal note that a student must sign when awarded a loan; stipulates conditions and repayment terms
Stafford Loan: a loan given by banks, credit unions, loan associations, and schools; also sometimes called a Guaranteed Student Loan, or GSL
Rejoice if you receive all of your financial aid from federal grants. Grants constitute “free money” for students. These dollars are free because they accrue no interest and do not need to be repaid. There are several major government grant programs: Pell Grants, FSEOGs, and Academic Competitiveness Grants. On the next few pages you’ll learn about each of these great programs.
Government College Grant Programs >>>
