Glossary beginning with F

Federal Direct Student Loan Program

The Federal Direct Student Loan Program (FDSLP) is similar to the Federal Family Education Loan Program (FFELP). The US government provides the funds for these loans directly to students and their parents through their schools. Benefits of the program include a faster turn-around time and less bureaucracy than the old "bank loan" program. The Federal Direct Student Loan Program (FDSLP) includes the Federal Direct Stafford Loan (Subsidized and Unsubsidized) and the Federal Direct Parent Loan for Undergraduate Students (PLUS). For more information about Direct Loans, contact the Direct Loan Servicing Center at 1-800-848-0979.

Federal Family Education Loan Program (FFELP)

The Federal Family Education Loan Program (FFELP) includes the Federal Stafford Loan (Subsidized and Unsubsidized), the Federal Perkins Loan, and the Parent Loan for Undergraduate Students (PLUS). Private lenders, such as banks, credit unions, and savings & loan associations provided funds for these loans. Effective July 2010, the FFELP Program was phased out and replaced with Direct Lending. The Department of Education now provides funds for these loans. The loans are guaranteed against default by the federal government.

Federal Income Tax Return

Every person who has received income during the previous year must file a form 1040 with the IRS by April 15. IRS form 1090 is used by business to report income paid to a non-employee. Banks use this form to report interest income. The 401(k) is one of several popular types of retirement funds. It is legal to borrow money from your 401(k) to help pay for your children's education.

Federal Methodology

The Federal Methodology (FM) is the need analysis formula used to determine the EFC. The Federal Methodology takes family size, the number of family members in college, taxable and nontaxable income, and assets into account. Unlike most Institutional Methodologies, however, the Federal Methodology does not consider the net value of the family residence.

Federal Processor

The Federal Processor is the organization that processes the information submitted on the Free Application for Federal Student Aid and uses it to compute eligibility for federal student aid.

Federal Work-Study

The Federal Work-Study (FWS) program provides undergraduate and graduate students with part-time employment during the school year. The federal government pays a portion of the student's salary, making it cheaper for departments and businesses to hire the student. For this reason, work-study students often find it easier to get a part-time job. Eligibility for FWS is based on need. Money earned from a FWS job is not counted as income for the prior year's need analysis process.


A form of financial aid given to graduate students to help support their education. Some fellowships include a tuition waiver or a payment to the university in place of tuition. Most fellowships include a stipend to cover reasonable living expenses (for example, just above the poverty line). Fellowships are a form of gift aid and do not have to be repaid.

Financial Aid

Money provided to the student and the family to help them pay for the student's education. Major forms of financial aid include gift aid (grants and scholarships) and self help aid (loans and work).

Financial Aid Notification (FAN)

is an official document issued by the Financial Aid Office that lists all of the financial aid awarded to the student. This letter provides details on their analysis of your financial need and the breakdown of your financial aid package according to amount, source, and type of aid. The FAN letter will include the terms and conditions for the financial aid and information about the cost of attendance. Students are required to access the myUNT portal to indicate whether they accept or decline each source of aid.

Financial Aid Package

The financial aid package is the complete collection of grants, scholarships, loans, and work-study employment from all sources (federal, state, institutional, and private) offered to a student to enable them to attend the college or university.

Financial Need

The difference between the COA and the EFC is the student's financial need - the gap between the cost of attending the school and the student's resources. The financial aid package is based on the amount of financial need. The process of determining a student's need is known as need analysis.

First-Time Borrower

A first-time borrower is an undergraduate student who is borrowing for the first time and has less than 30 credit hours. First-time borrowers may be subjected to a delay in the disbursement of the loan funds. The first loan payment is disbursed 30 days after the first day of the enrollment period. If the student withdraws during the first 30 days of classes, the loan is canceled and does not need to be repaid. Borrowers with existing loan balances are not subject to this delay.

Fixed Interest

In a fixed interest loan, the interest rate stays the same for the life of the loan.


During a forbearance the lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. The borrower must continue paying the interest charges during the forbearance period. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. Students cannot receive a forbearance if your loan is in default.

Free Application for Federal Student Aid (FAFSA)

The FAFSA is used to apply for Pell Grants and all other aid. Complete your FAFSA via web at . As the name suggests, no fee is charged to file a FAFSA. Follow the directions carefully to ensure proper and efficient processing.