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DANTES: See Defense Activity for Non-Traditional Education Support.

Default (Federal Perkins Loan): A loan for which the borrower failed to make an installment payment when due and such failure persisted (not cured either by payment or other appropriate arrangements). The Department of Education considers a loan discharged in bankruptcy not to be in default.

Default (Federal Stafford, Direct, Federal PLUS, or Direct PLUS Loans): The failure of a borrower to make an installment payment when due, or to meet other terms of the promissory note under circumstances where the Secretary of Education or the pertinent guaranty agency finds it reasonable to conclude that the borrower no longer intends to honor the obligation to repay. The Department of Education considers a loan discharged in bankruptcy not to be in default.

Defense Activity for Non-Traditional Education Support (DANTES): A series of examinations sponsored by the military to help service men and women as well as non-military people obtain college credit for the knowledge and skills they have acquired. Approximately 1,400 colleges and universities award credit to students who receive high enough scores on these exams. Before taking them, make sure your school is in this group.

Deferment (of loan): A condition during which payments of principal are not required, and, for Federal Perkins and Federal Subsidized Stafford and Direct Subsidized Loans, interest does not accrue. The repayment period is extended by the length of the deferment period. The most common reason for loan deferment is enrollment for at least half-time at an eligible school.

Department of Education, U.S. (ED): The section of the federal government that administers assistance to students enrolled in postsecondary educational programs under the following programs: Federal Pell Grant, Federal Perkins Loan, Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study (FWS), Federal Family Education Loan (FFEL), and William D. Ford Federal Direct Loan. The Secretary of Education, who heads the department, is a member of the Presidents Cabinet.

Departmental Scholarship: An award of gift assistance that is specifically designated for a recipient in a particular academic department within the institution. Departmental scholarships are a frequently overlooked source of potential funding.

Direct Loan (Subsidized and Unsubsidized): Long term, low-interest loans administered by the Department of Education and institutions. Variable interest rate not to exceed 8.25 percent. Direct Unsubsidized Loans can be used to replace EFC. While many aspects of the Direct Loan Program and the Federal Family Educational Loan (FFEL) Program are similar, there is no additional separate application required for Direct Loans.

Disbursement: The process by which financial aid funds are made available to students for use in meeting educational and related living expenses. Most schools disburse all funds for a particular term at the beginning of that term, although some, in an attempt to assist students in budgeting their funds, make smaller payments throughout the term.