Glossary of Financial Aid Terms

"D" Terms

Default

A borrower's failure to repay according to the terms agreed upon when the promissory note was signed. Default can also occur when a borrower fails to submit requests for deferment or cancellation. When a borrower defaults on a federal student loan, the school, the organization holding the loan, the guaranty agency, and the federal government can all take action to recover the money. A borrower is considered to be "in default" when payments are 180 or more days overdue and no satisfactory arrangements for payment, deferment or forbearance have been made. Assets, including Internal Revenue Service (IRS) refunds, may be seized and the borrower's credit record or history can be affected. Student loan borrowers in default will remain so until they pay back their loan in full, sign new loan agreements or reschedule their debt. While in default, they are also ineligible for additional federal student aid, including grants and loans.

Deferment

An authorized period of time during which a student loan borrower may postpone making payments on the principal or the principal plus interest. Borrowers must file deferment forms with their lenders and be approved for deferments. Deferments are available if borrowers are:

• enrolled in a degree-granting institution at least half-time;
• enrolled in a graduate fellowship program or rehabilitation training program;
• disabled;
• serving in the military or the Peace Corps;
• volunteering full-time for a non-profit organization;
• teaching full-time in a teacher-shortage area;
• unemployed;
• or experiencing demonstrated economic hardship.

The federal government makes interest payments on Subsidized Federal Stafford Loans during deferment periods.

Demonstrated Need

The difference between cost of college attendance and a student's (and the student's parents') ability to pay that cost:

  Student's Cost of Attendance Budget
- Family Contribution         
=Demonstrated Need

Dependency Status

For federal student aid, a student's dependency status is determined by guidelines established by the federal government. To be considered independent for federal funds, a student must be:

• at least 24 years old as of January 1
• married
• a graduate or professional student
• a veteran of the U.S. Armed Forces
• an orphan or ward of the court (or a past ward of the court until age 18)
• or have a legal dependent other than a spouse

All other students are considered dependent. For institutional aid purposes Duke University believes that the family has the primary responsibility for supporting their student's cost of attendance. The University views its role as supplementing those resources that the family can reasonably be expected to provide. Although we are willing to consider extenuating circumstances a parent refusing to provide support is NOT sufficient for a student to be declared independent for institutional aid purposes.

Duke Work-Study Program

Duke offers subsidized work study funds for a limited number of students not eligible for federal work-study. Duke work-study is paid directly to the student every two weeks, based on the number of hours worked. First-year students typically work about 10 hours per week. (For more information, see the Student Employment overview.)