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What is Finology Software?
Finology Software is a financial technology platform that empowers financial advisors with advanced tools to manage and plan student loan repayment for their clients alongside personal debt.
How does Finology Software help financial advisors?
The platform offers seamless data import from the NSLDS (National Student Loan Data System), enables personalized repayment strategies through federal IDR simulation and comparison tools, and provides comprehensive management and analytics for client loan data.
What are the key features of Finology Software?
The core of Finology Software’s Liability Planner, includes easy data import (NSLDS), comprehensive loan management, optimized repayment strategy simulations, and advanced planning capabilities using savable pro forma income scenarios.
What is the Finology Software Liability Planner?
The Finology Software platform delivers a Liability Planner that has various sophisticated tools the Federal Loan Simulator to adjust and calculate federal IDR Plans and the IDR Comparison tool to evaluate client Scenarios from the Federal Loan Simulator.
Can Finology Software simulate different repayment options?
Yes, the Liability Planner allows financial advisors to simulate various income-driven repayment plans and explore loan forgiveness scenarios such as Public Service Loan Forgiveness (PSLF).
How does the platform ensure user-friendliness?
Finology Software features a user-friendly interface designed for ease of use, ensuring financial advisors can quickly navigate through the tools and resources available.
How can new users start with Finology Software?
New users can sign up for a seven-day trial with a valid credit card to experience the platform. After the trial, annual subscriptions are available starting at $1,000 per year.
Where can I learn more about Finology Software?
Visit our website at finology.tech, where you can request a personalized demo, access our resource center, and find more information about our services.
How can I contact Finology Software for more assistance?
You can contact our dedicated support team via email at info@finology.tech for any specific questions or additional support.
How does data import work in Finology Software?
Our platform integrates seamlessly with the National Student Loan Data System (NSLDS) which is a database from the U.S. Department of Education that contains student loan information about borrower federal student financial aid. It tracks federal student aid loans throughout their entire lifecycle. Financial advisors can use this database to import student debt details into Finology Software.
What are income-driven repayment (IDR) plans and how can Finology simulate these?
IDR plans base your monthly payment on your income and family size. Finology Software enables advisors to simulate various IDR plans, providing clients with personalized, strategic repayment options.
Can Finology Software help track loan forgiveness programs?
Yes, the platform supports simulations and tracking for loan forgiveness eligibility, particularly for programs like Public Service Loan Forgiveness (PSLF), ensuring clients meet the necessary number of certified payments for discharging their federal student loans.
What are the benefits of using Finology Software for financial advisors?
Finology Software saves time with automated calculations, enhances client relationships with personalized advice for their debt, and supports advisors with comprehensive analytics and scenario planning tools for federal student loans.
How secure is client data on Finology Software?
We prioritize data security with high-standard encryption and compliance measures to protect all personal and financial information processed through our platform. If you have any additional questions email info@finology.tech.
What kind of customer support does Finology Software offer?
Finology Software provides robust customer support, including a resource center, FAQs, and a dedicated team available via email or phone to assist with platform navigation, troubleshooting, and strategic advice.
How do I access educational resources on Finology Software?
Our resource center delivers educational content on the capabilities of the Finology Software platform. Finology Software recommends financial advisors acquire a CCFC designation from AICFFC.org to improve their ongoing education. Finology Software also published informational and educational blog content on our website.
What specific income-driven repayment (IDR) plans does Finology Software’s Federal Loan Simulator support?
Income-Driven Repayment (IDR) plans adjust your student loan payments based on your income and family size, making them more affordable. The main types of IDR plans are:
Income-Based Repayment (IBR): 10-15% of your discretionary income.
Pay As You Earn (PAYE): 10% of your discretionary income.
Revised Pay As You Earn (REPAYE): 10% of your discretionary income.
Income-Contingent Repayment (ICR): The lesser of 20% of your discretionary income or a fixed amount over 12 years.
SAVE Plan – Formerly REPAYE effective date of July 1st, 2024 adjusts federal student loan payments to 5% of undergraduate debt and 10% for graduate debt. Interest does not capitalize on this new plan.
What does ‘loan deferment’ mean?
Loan deferment is a temporary postponement of student loan payments. During this period, borrowers are not required to make payments, and interest typically does not accrue on subsidized loans (though it may on unsubsidized loans). Deferment is often granted for situations like returning to school, experiencing economic hardship, or undergoing medical treatment.
How can I track Loans with Finology Software?
Finology Software helps financial advisors monitor their clients’ loan repayment. Advisors can see when a deferment starts and ends, and whether interest is accruing during this period. This tracking allows advisors to update financial plans in real-time, ensuring clients receive the most accurate and beneficial advice based on their current loan situation. Finology Software can also simulate different scenarios, helping clients understand the impact of deferment on their long-term repayment strategy.
How does the platform handle loan consolidation options?
Finology Software allows advisors to analyze loans from the NSLDS (National Student Loan Data System) and simulate various scenarios, helping clients simplify payments and potentially reduce interest rates. New Versions of Client Loans can include the weighted average rate for new Consolidated Loans and simulations of these loans in the Liability Planner.
Can the platform simulate the impact of capitalization on a student loan?
Yes, Finology Software can simulate how unpaid interest added to the principal balance of a loan—known as capitalization—affects future monthly payments and total interest paid over the life of the loan. As well as the benefits of the SAVE Plan which does not capitalize for borrowers enrolled in the SAVE Plan.
What is the Public Service Loan Forgiveness (PSLF) program and how does Finology help track eligibility?
Public Service Loan Forgiveness (PSLF) Program: The PSLF program forgives the remaining balance on Direct Loans after 120 qualifying monthly payments under a qualifying repayment plan while working for a qualifying employer, such as government or non-profit organizations.
Tracking with Finology: Finology Software automatically helps financial advisors track PSLF eligibility and progress when client data originates from an NSLDS file.
How are ‘discretionary income’ calculations handled in Finology Software?
Discretionary income is the amount of your income left over after covering essential expenses like taxes, rent, and basic living costs. It’s crucial for determining payments under many Income-Driven Repayment (IDR) plans for student loans.
How Finology Software Handles It:
Data Collection: Finology Software has inputs for financial advisors to onboard essential client data, including income, family size, and tax information.
Calculation: The software uses this data to automatically calculate discretionary income as well as any future increases of income as a %. This calculator also subtracts a certain percentage of the federal poverty guideline for the client’s family size and state from their total income.
Repayment Planning: Using the calculated discretionary income, Finology Software helps advisors identify the most suitable IDR plan for their clients, ensuring affordability and alignment with their financial goals. By automating these calculations with the Federal Loan Simulator and IDR Comparison, Finology Software streamlines the process, making it easier for financial advisors to provide their clients with insight.
Does Finology Software provide support for handling loans in default?
Finology does not provide support.
What security measures does Finology Software implement to protect client data?
Finology Software uses advanced encryption and security protocols to ensure all client data is protected from unauthorized access, maintaining confidentiality and integrity of financial information.
How can I invite my client to add their own loan information?
The first step is for them to go to studentaid.gov to obtain their NSLDS file. Attached is a downloadable file with the steps for obtaining by a borrower.
Why is my PDF of the NSLDS file not uploading?
A file format of .txt is required for the NSLDS upload into Finology Software.
How do I change the IDR plans in Finology Software?
The ability to calculate simulations of an IDR plan can be selected in the Federal Loan Simulator on the dropdown on the right side where the plans are labeled. For bulk changing of IDR visit the Loan Summary Page and select a loan to convert all loans to the desired IDR plan. We also recommend creating a new version of this report.
Can anyone move from Repaye to SAVE? Will everyone be moved to SAVE automatically in July?
Everyone who is on REPAYE will automatically be placed on SAVE July 1, 2024. It is not certain if the NSLDS file will be updated with this information on this date. This will need to be verified by reviewing the client’s file.
Why am I not able to see forgiveness amounts when time based forgiveness is toggled on?
To see forgiveness currently take the following steps:
Why am I not able to select Extended as a repayment option?
If the borrower has not consolidated their federal loans, they are eligible for a 25-year repayment term if the total loan balance is $30,000 or more.
Do you have a due diligence and compliance document for SOC2?
Yes, Finology leverages the SOC2 from our public cloud provider. To receive a copy, please request it from your account manager.
How long is client data stored?
As long as the client is active or if the request requests the data to be deleted.
What information do you keep on record for clients?
What outside systems do you integrate with (and transmit data with) that isn’t client/user initiated?
None
Who is your parent company, if any?
None
Do you have a board?
No
What do I need to do if I want to model Married Filing Separately for the SAVE Plan?
In the Finology Software platform client dashboard and select the desired tax filing type and then select the SAVE plan below in the Federal Loans Summary and then use the Liability Planner, adjustments to both of these inputs can be modified there as well.
Can we include additional payments in the scenarios?
Yes, additional payments through contributing a monthly amount or % of leftover income paid to the highest interest rate or lowest balance (debt snowball or avalanche),
Is there a way to see the advisor profile I created for the public facing site?
Yes, here is the site where you will be seen. https://finology.tech/borrowers/find-an-advisor. Also, make sure that you’ve checked the “Enable Find an Advisor Listing” box at the bottom of the edit profile page under my profile.
I can’t remember my password. What should I do?
Use the forgot password: https://identity.finology.tech/Account/Login
Is there a report I can download or share with my client?
We recommend you take screenshots of the scenarios and charts you want to share with your client. Additional support and tools will be released moving forward.
What does the Total Monthly Payment include on the Client Dashboard?
It includes federal and private loan payments.
Is there a limit to the number of scenarios I can add to each client?
No, there is no limit.
How many clients can I manage under my Finology Software account?
There is no limit to the number of clients at this time.
Does Finology Software have relationships with lenders who work with advisors to refinance student loans?
No, we do not have any lender relationships.
I have a client who consolidated their loans, but it’s showing the old loans still have payments. Can I just delete the old loans or is there something my clients need to do to ensure those loans are closed?
You can duplicate the NSLDS file using Versions and delete out the old loans for the model as desired.
Why can’t I try the software for free for seven days before putting in my credit card?
We understand the frustration of having to use your credit card to sign up for the free trial. However, to ensure that users are able to receive full functionality of the platform and see the utility of Finology Software’s platform, a user must identify themselves with their credit card. At any time before the 7 days and you desire to cancel your subscription and simply cancel your account in the profile and your credit card will not be charged.
An academic year is one complete school year at the same school, or two complete, half years at different schools. For schools that have a year-round program of instruction, nine months is considered an academic year.
Acceleration
Acceleration is the demand for immediate repayment of the entire outstanding balance of a loan.
Aid for Military Family Service
Both the federal government and nonprofit organizations offer money for college to veterans, future military personnel, active duty personnel, or those related to veterans or active duty personnel.
Alternative Documentation of Income (ADOI)
Alternative documentation of income (ADOI) is proof of all current income to be provided when applying for an income-driven repayment (IDR) plan and not providing a federal tax return or tax transcript.
Annual Taxable Income
Your annual taxable income is the amount of income used to determine how much tax you owe in a given year. This can include wages, salaries, bonuses, tips, investment income, and unearned income.
Are you someone’s dependent?
Choose ‘no’ if no one can claim you or your spouse as a dependent. Choose ‘yes’ if someone can claim you as a dependent. Choose “Both you and your spouse” if you both are dependents. (You are a dependent if someone supports you and can claim a dependency exemption for you.)
Award Year
School year for which financial aid is used to fund a student’s education. Generally, this is the 12-month period that begins on July 1 of one year and ends on June 30 of the following year.
Capitalization
Capitalization is the addition of unpaid accrued interest to the principal balance of a loan. Over time, this can increase your monthly payment.
Collection Agency
An entity that recovers unpaid debt from borrowers who have defaulted on their loans.
Collection Costs
Expenses charged on defaulted federal student loans that are added to the outstanding principal balance of the loan.
Cookie
Cookies are bits of data that a website transfers to a computer’s hard drive. The most common use of cookies is for a website to determine your personal preferences. Some cookies disappear once you close the browser while some remain.
Credit
Credit refers to the amount of money you borrow and your ability to borrow to purchase goods and services. Credit is extended to you from a credit grantor with which you make an agreement to pay back the amount spent, plus applicable interest and fees, within an agreed-upon time.
Debt Collection
Debt collection is the course of pursuing payments of loan debts due by borrowers.
Debt Consolidation
Debt consolidation is a method of debt refinancing that involves taking out one loan to pay off others.
Default
A loan goes into default when you fail to repay the loan as outlined in your promissory note. Most federal student loan default occurs when a payment isn’t made in more than 270 days. It can result in legal consequences and a loss of eligibility for additional federal student aid.
Deferment
A deferment is a temporary postponement of payment on a loan that is allowed under certain conditions and during which interest doesn’t accrue on subsidized loans. More info: https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief/deferment
Dependents qualifying for child tax credit
You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. The credit is, however, phased out at higher incomes.
Direct PLUS Loan
Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students use to help pay for education expenses.
Direct Subsidized Loan
A Direct Subsidized Loan is a federal student loan where a borrower isn’t generally responsible for paying interest while in an in-school, grace, or deferment period. To apply, start by submitting a FAFSA® form: https://studentaid.gov/h/apply-for-aid/fafsa.
Discretionary Income
Discretionary income is a factor used in determining a borrower’s payment amount for certain loan repayment plans and/or loan rehabilitation. It’s the difference between annual income and a percentage of the poverty guideline for the borrower’s family size and state of residence.
Early Action
Early action is a college admission policy that allows applicants to apply and receive notice of their admission early. Applicants accepted under early action are not under a binding agreement to attend that school and may submit applications to other schools.
Early Decision
Early decision is a college admission policy that allows applicants who commit to attend a school to apply and receive notice of their admission early. If an applicant is accepted, he or she agrees to attend that school and must withdraw all other applications.
Educational Service Agency
An educational service agency is a regional public multiservice agency that is authorized by state law to develop, manage, and provide services or programs to local education agencies, such as public-school districts.
Eligible Program
An eligible program is a program of organized instruction or study of a certain length that leads to an academic, professional, or vocational degree or certificate, or other recognized education credential.
Emanicpated Minor
An emancipated minor is someone who has been legally deemed an adult by a court in his or her state of residence. If you are an emancipated minor, you are considered an independent student and will not provide information about your parents on the FAFSA® form.
Endorser
An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower becomes delinquent in making payments or defaults on the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. Apply: https://studentaid.gov/endorser-addendum
Endorser Code
An Endorser Code is used to complete a Direct PLUS Loan addendum to the Master Promissory Note. If encountering issues, go here: https://studentaid.gov/help-center/answers/article/endorser-code-issue-troubleshooting.
Enrollment Status
Enrollment status is reported by the school you attended, and indicates whether you are, or were, full-time, three-quarter time, half-time, less than half-time, withdrawn, graduated, etc.
Entrance Counseling
Entrance counseling explains your rights and the obligations you agree to meet as a condition of accepting a Direct Loan. More information about entrance counseling is available at: https://studentaid.gov/entrance-counseling/.
Exit Counseling
Exit counseling provides important information to prepare you repay your federal student loan(s). Topics include: Contact Settings, My Loans, Preparing to Repay, Determining Your Repayment Strategy. Exit counseling is available at: https://studentaid.gov/exit-counseling/.
Extended Repayment Plan
The Extended Repayment Plan allows you to repay your loans over an extended period. Payments are made for up to 25 years. There are specific eligibility requirements to qualify for this plan.
Federal Family Education Loan (FFEL) program
The Federal Family Education Loan (FFEL) Program was a program that worked with private lenders to provide education loans guaranteed by the federal government. The FFEL Program ended in 2010. All loans are now made through the Direct Loan Program.
Federal Pell Grant Program
The Pell Grant is the largest federal grant program offered to undergraduates. It is designed to assist students from low-income households. To qualify for a Pell Grant, a student must demonstrate financial need by completing and submitting the FAFSA® form.
Federal Perkins Loan
A Perkins Loan was available to undergraduate, graduate, and professional students until Sept. 30, 2017; the program has since expired. The Perkins Loan is a subsidized loan, meaning the federal government pays the loan’s interest while the borrower is in school.
Federal Student Aid
Federal student aid is aid from the government in the form of grants, loans, and/or work-study funds to assist students with college or career school. Students have to complete the FAFSA® form to apply for this aid.
Federal Supplemental Educational Opportunity Grant (FSEOG)
The Federal Supplemental Educational Opportunity Grant (FSEOG) is a grant that is awarded to an undergraduate student who demonstrates exceptional financial need to help pay for their education. Awards can range from $100–$4000 and don’t need to be repaid.
Federal Work-Study
Federal Work-Study provides part-time jobs for undergraduate and graduate students with financial need. You’ll need to be awarded work-study by your school’s financial aid office and secure an eligible job. Reach out to your school’s financial aid office for more info.
Financial Aid
Financial aid is money to help pay for college or career school.
Forbearance
A forbearance allows you to temporarily stop making your monthly student loan payments or temporarily make smaller payments. Eligibility for specific types of forbearance: https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief/forbearance
FSA ID
An FSA ID consists of an account username and password that give you access to the U.S. Department of Education’s online systems and can serve as your legal signature when completing electronic documents. Create an FSA ID: https://studentaid.gov/fsa-id/create-account/launch
Full-Time Teacher
A teacher is a person who provides direct classroom teaching or classroom-type teaching in a non-classroom setting, including special education teachers.
Gifts to charity
Enter your total gifts of cash and non-cash to qualified charitable organizations. Enter cash donations only (check, credit card, actual cash) if you will be taking the standard deduction and your total cash portion of your donations was under $300.
The calculator will automatically include a charitable contribution deduction (of up to $300) when the standard deduction is taken. This was a new deduction in 2020, made available as part of the CARES act.
Graduate or Professional Student
A graduate or professional student is a student who is pursuing education opportunities beyond an undergraduate (bachelor’s) degree. Graduate and professional programs include master’s and doctoral programs such as Ph.D., J.D., and M.D., among others.
Graduate Repayment Plan
The Graduated Repayment Plan starts with lower payments that increase every two years. Under this plan, you make payments for up to 10 years (between 10 and 30 years for consolidation loans).
Graduation Rate
A school’s graduation rate is the percentage of a school’s full-time, first-time degree- or certificate-seeking students who complete their degree or certificate within 150 percent of the published length of the program in which they are enrolled.
Grant
A grant is a monetary gift for people pursuing higher education. It is often based on financial need and does not need to be repaid (unless, for example, you withdraw from school and owe a refund).
Gross Income
Gross income is your total annual income from wages and other sources, before certain deductions and taxes are calculated.
Guaranty Agency
A guaranty agency is a state or private non-profit agency that helps administer the Federal Family Education Loan (FFEL) Program. A guaranty agency insures federal loans by repaying the loan holder when a loan defaults, and then collects the defaulted loan from the borrower.
Half-time Enrollment
Half-time enrollment is an enrollment status applied to students who are only enrolled in half of the expected full-time course load. Half-time enrollment can affect the cost of attendance (COA), and each school may have different half-time enrollment specifications.
Head of Household
For tax purposes, you might claim head of household if you are unmarried and responsible for more than half of the cost of keeping up your and your dependent’s home. Whether you are head of household can affect how you report tax return information on the FAFSA® form.
Homeless
A homeless individual is someone without a home who generally lives in shelters, parks, motels, hotels, cars, or with someone else due to not having anywhere else to go. Homeless individuals can still receive federal student aid.
Income = Wages, Salaries, tips, etc.
This is your total taxable income for the year after deductions for retirement contributions such as 401(k)s, IRAs, etc.
Income-Based Repayment (IBR) Plan
Eligible loans: Direct loans and FFEL Program loans other than those in default, PLUS loans made to a parent borrower, or Consolidation Loans that repaid a Direct or Federal PLUS Loan made to a parent borrower. Consolidating a Federal Perkins Loan may make you eligible.
Income-Contingent Repayment (ICR) Plan
Eligible loans: Direct loans other than those in default and parent PLUS loans. Consolidating a Federal Perkins Loan, FFEL Program loan or Direct PLUS Loan made to a parent may make you eligible.
Independent Student
For the 2024–25 FAFSA® form, an independent student is born before Jan. 1, 2001, married, a graduate/professional student, a veteran, a member of the U.S. armed forces, an orphan, a ward of the court, a current or former foster youth, someone who is or was in a legal guardianship, someone with legal dependents (not a spouse), an emancipated minor, or someone who is or at risk of being homeless.
Interest
Interest is a loan expense charged for the use of borrowed money and is paid by a borrower to a lender. The expense is calculated as a percentage of the unpaid principal amount of the loan. Select the article link to get more info.
Interest paid
Taxpayers can deduct the interest paid on qualified residences for up to $750,000 in mortgage debt (the limit is $375,000 if married and filing separately). For mortgages that were originated before December 15, 2017, the limit is $1 million in total mortgage debt. This includes refinancing these mortgages as long as the amount owed is not increased as part of the refinancing.
Any interest paid on first, second or home equity mortgages over the limit is not tax-deductible. Only home equity loans that are used to buy, build or substantially improve the home that secures the loan are included. All other home equity loans do not have an interest deduction. Mortgage interest is reported on form 1098.
You can also include the amount you paid for “points” (which reduces your mortgage interest rate). Mortgage insurance premiums paid are no longer deductible.
Iraq and Afganistan Service Grant (IASG)
You may be eligible for the Iraq and Afghanistan Service Grant (IASG) if your parent or guardian died as a result of military service performed in Iraq or Afghanistan after the events of 9/11, and you are not eligible for a Federal Pell Grant.
Itemized deduction
Your total itemized deductions from Schedule A.
Job Placement Rate
A school’s job placement rate is the percentage of graduating students who obtained employment either in the recognized occupation for which they were trained or in a related, comparable, recognized occupation within a determined period after receiving their degree/certificate.
Judgment Lien
A judgment lien gives a creditor the legal right to keep property when the owner fails to pay a debt. It can only be granted by a court. A student (or parent in the case of a parent borrower) with a judgment lien will not qualify for federal student aid.
Legal Guardianship
Legal guardianship is a designation by a court that authorizes someone to care for an individual in place or absence of parents. Having a legal guardian qualifies you as an independent student, such that you do not have to report your parents’ income on the FAFSA® form.
Lender
A lender is an organization that loans money. For Direct Loans, the lender is the U.S. Department of Education. If you have a FFEL Program loan, the lender may be a financial institution such as a bank or credit union. If you have a Perkins Loan, the lender is the school where you received the loan.
Litigation
Litigation is the act or process of bringing or contesting a legal action in court.
Loan
A loan is money borrowed from the federal government or a private source like a bank or financial institution, and must be paid back with interest.
Loan Discharge
Loan discharge is the removal of a borrower’s obligation to repay some or all of a loan under certain circumstances including death, disability, bankruptcy, fraud, and identity theft: https://studentaid.gov/manage-loans/forgiveness-cancellation
Loan Forgiveness
Student loan forgiveness is offered to encourage certain types of employment. A loan may be fully or partially forgiven after a certain number of years of qualifying employment.
Married Filing Jointly
If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under te status “Married Filing Separately.”
Married Filing Separately
If you are married, you have the choice to file separate returns. The filing status for this option is “Married Filing Separately”.
Master Promissory Note (MPN)
An MPN is a legal document that contains the Borrower’s Rights and Responsibilities and Terms and Conditions for repayment. Direct PLUS and Direct Subsidized / Unsubsidized loans have different MPNs. Access the MPN at: https://studentaid.gov/mpn.
Medical and Dental Expenses
Enter your qualified medical and dental expenses for the year. This can include your health insurance premiums if you paid for them yourself (not through an employer sponsored plan) and you have not deducted them elsewhere. Your actual deduction is only for the amount that exceeds 7.5% of your Adjusted Gross Income (AGI). Enter your total expenses and we will calculate the actual deduction based on your AGI.
Merit-Based
Merit-based means that something is based on a student’s skill or ability. For example, a merit-based scholarship might be awarded based on a student’s high grades.
New Borrower
Someone who has no outstanding balance on a Direct Loan or Federal Family Education Loan (FFEL) Program loan when he or she receives a Direct Loan or FFEL Program loan on or after a specific date.
Non-tenure-track Employment
Non-tenure-track employment means work performed by adjunct, contingent, or part-time faculty, teachers, or lecturers who are paid solely for the credit hours they teach at institutions of higher education.
Ombudsman Group
The Ombudsman Group is dedicated to helping resolve disputes related to the federal student aid programs, including Direct Loans, Federal Family Education Loan (FFEL) Program loans, Perkins Loans, and grant programs: https://studentaid.gov/feedback-ombudsman/disputes/prepare
Out-of-State Student
An out-of-state student is a student who is attending a college or career school outside of his or her state of legal residence.
Partial Financial Hardship
Partial financial hardship is an eligibility requirement under the Income-Based Repayment and Pay As You Earn repayment plans. For more information, go to Repayment Plans.
Pay As You Earn (PAYE) Plan
The Pay As You Earn Plan is a repayment plan with monthly payments that are generally equal to 10% of your discretionary income, but never more than the 10-year Standard Repayment amount.
Payroll Deductions
Payroll deductions are amounts of money withheld from your paycheck by your employer.
PLUS Credit Counseling
PLUS credit counseling helps graduate/professional students and parents of eligible dependent undergraduate students understand the obligations associated with borrowing a PLUS loan and assists them in making careful decisions about taking on student loan debt.
Postbaccalaureate Teacher Certification Program
A postbaccalaureate teacher certification program is a program that enables those who hold at least a bachelor’s degree to earn teacher certification at the elementary or secondary level. Program specifics can depend on the school and state where the program is available.
Prepaid Tuition
A prepaid tuition plan, also known as a section 529 plan, lets you lock in future tuition rates at in-state public colleges at current prices and is usually guaranteed by the state in which the plan was established.
Principal
Principal refers to the sum of money lent, on which interest is paid.
Proprietary School
A proprietary school is a private, for-profit school that provides education and training.
Public Service Loan Forgiveness (PSLF) Help Tool
This tool will help you understand the following about the Public Service Loan Forgiveness (PSLF) Program: what is required to participate, if an employer qualifies, which loans qualify, and what actions to take. The PSLF Help Tool is available at: https://studentaid.gov/pslf/
Public Service Loan Forgiveness (PSLF) Program
The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) qualifying monthly payments under a qualifying repayment plan, while working full-time for a qualifying employer.
Qualified Widow(er)
Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider.
Regular Student
A regular student is one who is enrolled or accepted for enrollment at an institution for the purpose of obtaining a degree, certificate, or other recognized education credential. To be eligible for federal student aid, you must generally be a regular student.
Rehabilitated Loan
Loan rehabilitation is one method of getting your student loan out of default. To begin the rehabilitation process, you must contact your loan holder. For more info about getting out of default: https://studentaid.gov/manage-loans/default/get-out
Repayment
Repayment is paying back money you borrowed by making scheduled payments to a loan holder or servicer.
Retention Rate
A school’s retention rate is the percentage of its first-time students who are seeking bachelor’s degrees who return to the institution to continue their studies the following fall.
Room and Board
Room and board is generally the cost of housing and food while attending college or career school.
Satisfactory Academic Progresss
Satisfactory academic progress is the process a school uses to determine if a student is meeting all of his or her educational requirements and is on target to graduate on time with a degree or certificate. This process may vary across schools.
Saving on a Valuable Education (SAVE) Plan
The Saving on a Valuable Education (SAVE) Plan is an income-driven repayment (IDR) plan with monthly payments that are generally equal to 10% of your discretionary income. Note: The SAVE Plan is the new name of the Revised Pay As You Earn (REPAYE) Repayment Plan.
Scholarships
Scholarships are gifts that don’t have to be repaid and are designed to help students pay for an undergraduate degree. They can be a one-time gift or are renewable, depending on the scholarship.
School Closure
If your school closed before you completed your program of study, you might qualify for a complete discharge of your federal student loans under the William D. Ford Federal Direct Loan (Direct Loan) Program, Federal Family Education Loan (FFEL) Program, or Federal Perkins Loan Program.
Service Obligation
A TEACH service obligation is an agreement to teach full-time, in a high-need field, at an elementary/secondary school/educational service agency for low-income students, and for at least four out of eight academic years following their ending of the grant assisted study.
Single
If you are divorced, legally separated or unmarried as of the last day of the year you should use this status.
Stafford Loan
The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. Some people refer to these loans as Stafford Loans or Direct Stafford Loans.
Standard Deduction
Your standard deduction is used to reduce your taxable income if you do not use Schedule A to itemize your deductions, or if your Schedule A itemized deduction is less than your standard deduction. Your standard deduction is based on your filing status. For 2021, the standard deductions are:
Married Filing Joint: $27,700
Qualified Widow(er): $27,700
Single: $13,850
Heads of Household: $20,800
Married Filing Separately: $13,850
Standard Repayment Plan
The Standard Repayment Plan is the basic repayment plan for the William D. Ford Federal Direct Loan (Direct Loan) and Federal Family Education Loan (FFEL) Programs. Payments are fixed and made for up to 10 years (10–30 years for Consolidation Loans).
Standardized Test
A standardized test is a test that is designed to assess individuals against a common standard. For example, the SAT and ACT are standardized tests that some colleges require for consideration for admission.
State Aid
State aid, such as Cal Grants and NY TAP, is financial assistance that a state offers to eligible residents. We don’t administer state aid programs. Contact your state grant agency for more info: https://www2.ed.gov/about/contacts/state/index.html
Student Fraud
Student fraud is any situation where an individual falsifies information in order to qualify for student aid. Examples of student fraud include using false information on the FAFSA form or reporting an invalid high school diploma.
Student Loan Debt Burden
Student loan debt burden is the percentage of a borrower’s monthly income that is dedicated to his or her student loan payments. The smaller this percentage, the lower the debt burden.
Taxes paid (generally state and local)
Enter the total of your 1) state and local property taxes and 2) state and local income taxes. If your state does not have an income tax (or you have paid more sales tax than income tax during the year) you can choose to include state local sales taxes instead of state and local income taxes.
Teach-Out Process
A teach-out process provides for the equitable treatment of students and a reasonable opportunity for students to complete their program of study if a school ceases to operate before they have completed their program of study.
Teacher
A teacher is a person who provides professional direct instruction to students.
Teacher Education Assistance for College and Higher Education (TEACH) Grant
The TEACH Grant funds students who are completing/plan to complete coursework that is required to be a teacher, and who agree to teach full-time in a high-need field at an educational service agency or school for low-income students for at least four years.
Total and Permanent Disability Discharge
A total and permanent disability discharge relieves you from having to repay your federal student loan(s) and/or complete your Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation. Learn more: https://disabilitydischarge.com/.
Transfer Rate
A school’s transfer rate is the percentage of its full-time, first-time students who have transferred to another institution.
Transfer Student
A transfer student is a student who has completed some academic credits at a college or university and has requested to enroll at a different institution.
Treasury Offset
An offset is when a payment you would get from the U.S. Department of Treasury (such as an income tax refund) is reduced or stopped to pay off a delinquent debt. If the whole refund isn’t applied to the debt, the remainder will be processed; offset shouldn’t delay it.
Tuition
Tuition is the amount of money you owe for receiving instruction, materials, and/or supplies, or for the rental or purchase of equipment, for a course of study at your institution.
Undergraduate Student
An undergraduate student is a student who is enrolled in an undergraduate course of study at a college/university or career school that usually doesn’t exceed four years and leads to an undergraduate degree or certificate.
Unsubsidized Loan
An unsubsidized loan through the Direct Loan Program offers students a low, fixed interest rate and flexible repayment terms. It’s not based on financial need. Apply for federal student loans: https://studentaid.gov/h/apply-for-aid/fafsa
Untaxed Income
Untaxed income is income that is excluded from federal income taxation under the IRS code. Examples of untaxed income include Supplemental Security Income, child support, alimony, and federal or public assistance.
William D. Ford Federal Direct Loan Program
The Direct Loan Program is the federal student loan program under which eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Loans include Direct Subsidized, Direct Unsubsidized, Direct PLUS, and Direct Consolidation Loans.
Withholding
A withholding is an amount of money that an employer takes out of your wages and pays to the government. If too little is withheld, you will owe additional taxes. If too much is withheld, you receive a refund.