An award letter is the FAFSA documentation sent from a college or university to the student that details how much financial support the student is eligible for. 

An award letter is the documentation sent from a college or university to the student that details how much financial support the student is eligible to receive. If you submitted a FAFSA and were approved for financial aid, each school that accepted you will send you a financial aid award letter. Upon receipt of the award letter and deciding which school to attend, students must inform the selected school how much of the award (financial aid) will be accepted. After you submit your FAFSA—and depending on whether you qualify for aid based on the information you provide—you’ll receive a financial aid award letter from each school you list on it. The award letter outlines the type and amount of all financial aid that is offered to the student, including grants (such as Pell Grants and Federal Supplemental Educational Opportunity Grants), loans (for instance, Stafford and Perkins Loans), scholarships, and any work-study eligibility.

FAFSA Award Letter

The deferment period is an agreed-upon time during which a borrower does not have to pay interest or principal on a loan, such as with a student loan.

The deferment period is a time during which a borrower does not have to pay interest or repay the principal on a loan. Depending on the loan, interest may accrue during a deferment period, which means the interest is added to the amount due at the end of the deferment period. A student loan deferment, for example, is usually for up to three years, while many municipal bonds have a deferment period of 10 years. A deferment period is an agreed-upon time during which a borrower does not have to pay the lender interest or principal on a loan. The deferment period is a time during which a borrower does not have to pay interest or repay the principal on a loan.

Deferment Period

A direct consolidation loan is a type of direct loan that combines two or more federal education loans into a single loan.

At the Request of President Biden, Acting Secretary of Education Will Extend Pause on Federal Student Loan Payments

Can I cancel my consolidation loan application?

Table of Contents
What Is a Direct Consolidation Loan?
Understanding the Loans These include reduced interest rates, principal rebates, repayment incentive programs, or loan cancellation benefits that are available under the loans that you’re consolidating.
Pros of Direct Loan Consolidation
Lower monthly payments
Lower interest rates
One monthly payment
Different repayment options
Access to loan forgiveness options
Cons of Direct Loan Consolidation
Pay more interest over life of loan
You don't get a grace period
Prior loan payments do not count towards loan forgiveness requirements
You may lose some benefits by consolidating your loans A direct consolidation loan is a type of federal loan that combines two or more federal education loans into a single loan with a fixed interest rate based on the average rate of the loans being consolidated. A direct consolidation loan is a type of federal loan that combines two or more federal education loans into a single loan with a fixed interest rate based on the average rate of the loans being consolidated. Borrowers can consolidate subsidized and unsubsidized Stafford loans, Supplemental Loans for Students, Federally Insured Student Loans, PLUS loans, direct loans, Perkins loans, and any other type of federal student loan.

Direct Consolidation Loan

An education loan is a sum of money borrowed to finance college or school-related expenses while pursuing an academic degree. Education loans can be obtained from the government or through private-sector lending sources.

An education loan is a sum of money borrowed to finance post-secondary education or higher education-related expenses. Although there are a variety of education loans, they can be broken down generally into two basic types: federal loans sponsored by the federal government and private loans. Although there are a variety of education loans, they can be broken down generally into two basic types: federal loans sponsored by the federal government and private loans. Various types of federal student loans exist, including direct subsidized, direct unsubsidized, and direct consolidation loans. The first step in seeking education loans through the federal government is to complete a free application for federal student aid (FAFSA).

Education Loan

The Free Application for Federal Student Aid (FAFSA) is the key to getting grants, scholarships, work-study, and loans to help pay for college.

What Types of Federal Student Loans Are Available?

Simple Steps to Transfer Tax Information Into Your FAFSA® Form

The FAFSA is the official form that families must use to apply for federal financial aid to pay for college. Much of the information requested by the FAFSA also appears on family tax returns and can be downloaded automatically from the IRS in many cases.
FAFSA is an acronym for Free Application for Federal Student Aid.
The office of Federal Student Aid, part of the U.S. Department of Education, annually provides more than $120 billion in federal aid to some 13 million students.﻿﻿ That aid consists of grants, work-study, and loans. In addition to some changes in the way the SAI is calculated, the change attempts to clarify what this figure actually is—an eligibility index for student aid, not a reflection of what a family can or will pay for postsecondary expenses.
Around the time that students are accepted by a college, they will also receive a financial aid offer, which may consist of a package of grants, work-study, and loans. Another is the CSS Profile, an online application administered by the College Board and used by several hundred colleges, universities, and private scholarship programs to determine the student's eligibility for need-based, non-federal financial aid. The Free Application for Federal Student Aid (FAFSA) is used by the federal government to determine a family's eligibility for grants, work-study, and loans to pay for college.

Free Application for Federal Student Aid (FAFSA)

The Federal Direct Loan Program is a federal program that provides low-interest loans to post-secondary students and their parents.

Table of Contents
Federal Direct Loan Program The program offers several types of loans, including subsidized direct loans, unsubsidized direct loans, direct PLUS loans, and direct consolidation loans. Low Interest, fixed interest rate loans
Federal repayment programs are available when it comes to time to pay them back
You do not need good credit to get them
Grace period on repayment after graduation
Only unsubsidized direct loans are offered to graduate students
Parents who take out PLUS loans must pay fees Direct subsidized loans and direct unsubsidized loans for undergraduates have an interest rate of 3.73%, and unsubsidized student loans for graduate students have a 5.28% interest rate. An advantage of taking out federal direct student loans versus private loans is the low interest, fixed rates offered with federal loans.

Federal Direct Loan Program

A PLUS loan is a federal loan for higher education, available to parents of undergraduates and also to graduate and professional students.

What Is the Interest Rate for Federal Student Loans?

Are There Any Fees for Federal Student Loans?

A PLUS loan, also known as a direct PLUS loan, is a federal loan for higher education available to the parents of undergraduate students, as well as to graduate or professional students. A PLUS loan, also known as a direct PLUS loan, is a federal loan for higher education available to the parents of undergraduate students, as well as to graduate or professional students. Such loans are often referred to as a grad PLUS loan, as opposed to a parent PLUS loan. Borrowers are eligible for a PLUS loan regardless of financial need.
PLUS loans come with relatively low, fixed interest rates. Like federal student loans, PLUS loans are offered through the U.S. Department of Education's William D. Ford Federal Direct Loan Program.

PLUS Loan

The student loan interest deduction allows a tax break of up to $2,500 for interest payments on loans for higher education. Here's how to qualify.

Topic No. 456 Student Loan Interest Deduction

Biden Administration Extends Student Loan Pause Until January 31, 2022

Publication 970: Tax Benefits for Education, 2020

About Form 1098-E, Student Loan Interest Statement

IRS Offers Guidance on Recent 529 Education Savings Plan Changes

H.R.1 - An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018

H.R.1994 - Setting Every Community Up for Retirement Enhancement Act of 2019

H.R. 1319: American Rescue Plan Act of 2021

Table of Contents
What Is the Deduction?
How it Works
Special Considerations
The Deduction vs. Other Breaks The term student loan interest deduction refers to a federal income tax deduction that allows borrowers to subtract up to $2,500 of the interest paid on qualified student loans from their taxable income. There are three criteria that taxpayers must meet in order to claim the credit:
1.  The taxpayer, their dependent, or another party pays for qualified higher education expenses.
2.  The taxpayer, their dependent, or another party pays the expenses for an eligible student enrolled at a qualified institution.
3.  The taxpayer is the student, their spouse, or a dependent listed on their tax return.
You can also get tax benefits by participating in a 529 Plan. One of these is the student loan interest deduction, which allows for the deduction of up to $2,500 of the interest paid on a student loan during the tax year. The student loan interest deduction allows borrowers to deduct up to $2,500 of the interest paid on a loan for higher education directly on Form 1040.

Student Loan Interest Deduction

A Stafford loan is a type of federal, fixed-rate student loan available to college and university undergraduate, graduate, and professional students attending college at least half-time.

Stafford loan is a type of federal, fixed-rate student loan available to college and university undergraduate, graduate, and professional students attending college at least half-time. Federally guaranteed student loans can be either subsidized (subsidized Stafford loans or direct subsidized loans), which means the federal government pays the interest during certain periods, or unsubsidized (unsubsidized Stafford loans or direct unsubsidized loans).
Direct subsidized loans are only available to undergraduates with demonstrated financial need, whereas both undergraduate and graduate students can take out direct unsubsidized loans and financial need is not a factor. Interest rates on Stafford loans are usually lower than those on private loans, there is no credit check for most federal student loans, and repayment doesn't begin until after a student leaves college or drops below half-time. Federal student loans were called Stafford loans under a previous program run by the Federal Family Education Loan Program. Stafford loans, now called direct loans, provide low-cost, federally guaranteed financing for students attending college at least half-time.

Student Loans

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