EPF Midterm

Entrance Counseling

A mandatory information session which takes place before a student receives their first federal student loan.

Delinquency

Describes the status of being behind on one or more loan payments.

Forbearance

A process that allows a borrower to pause their federal student loan payments; interest continues to accrue during this time period and may be capitalized.

Default

Long- term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score.

Comparative Advantage

a countrys ability to produce a good more efficiently than other.

Unemployment rate

the percentage of people in the civilian labor force who are not working but are looking for jobs.

Surplus

situation in which the amount of a good or service supplied by producers is greater than the amount demanded by consumers.

Master Promissory Note

(MPN)- A legal document in which you promise to repay your federal student loan (s) and any accrued interest and fees to your lender or loan holder.

Embargo

an agreement among a group of nations that prohibits them all from trading with a target nation.

Socialism

system in which government owns some factors of production and distributes the products and wages

Scarcity

is the basic economic problem.

Capitalism

a system in which private citizens own most, if not all, of the means of production ad decide how to use them within legislated limits.

Interest Rate

the payment people or institutions receive when they lend money or allow someone else to use their money.

Tariff

a tax on an imported good.

Cosigner

Someone who legally agrees to take responsibility for a person's debt if they can not repay it.

Student aid

Grants coming from the state or federal government, the school, or from private sources that does not need to be repaid.

Scholarship

A type of aid primarily awarded for academic merit (good grades) or for something you have accomplished (volunteer work, athletics, etc .)

Exit Counseling

A mandatory information session which takes place when a student graduates, leaves school, or attends school less than half- time.

Fiscal Policy

how the government uses taxes and spending to reach economic goals.

Recession

a period of declining economic activity lasting six or more months.

Deferment

A process that allows a borrower to pause their federal student loan payments; interest does NOT accrue during this time period on subsidized loans.

Laissez Faire

a belief that government should not interfere in the marketplace.

Shortage

situation in which the supply of the good or service available is less than the demand for it.

Principal

Original amount of money borrowed, separate from interest or fees.

Labor Unions

association of workers organized to improve wages and working conditions.

Tuition

The sticker price for the academic portion of your college expenses, which does not include room and board, textbooks, or other fees.

Disbursement

A portion of a federal student loan that the school pays out by applying the funds to the student's school account or by paying the borrower directly.

Gross Domestic Product

total market value of all final goods and services produced in a country during a single year.

Exports

to sell goods to other countries.

Expected Family Contribution

(EFC)- An index number used to determine your eligibility for federal student financial aid.

GDP

total market value of all final goods and services produced in a country during a single year.

Opportunity cost

is the cost of the "next best use "of your money or time when you choose to do one thing rather than another.

Grace Period

A period of time during which a borrower is typically not required to make loan payments.

Monetary Policy

manipulation of the money supply to affect the cost of credit, economic growth, and price stability.

Reserve requirements

the percentage of a deposit that banks have to set aside as cash in their own vaults or as deposits in their Federal Reserve district bank.

Unpaid interest

Capitalized Interest that has been added to the principal balance of a loan.

Net Price

The actual cost a student pays to attend a school, calculated as the sticker price minus grants and scholarships.

Prepayment Penalty Fee

A fee that some lenders charge if you pay off all or part of your loan early.

Student Aid Report

(SAR)- The report you receive after submitting your FAFSA.

Recession

a period of declining economic activity lasting six of more months.

Scarcity

is the basic economic problem

Opportunity cost

is the cost of the "next best use" of your money or time when you choose to do one thing rather than another

Business cycle

alternating periods of economic growth and decline

Depression

state of the economy with high unemployment, severely depressed real GDP, and general economic hardship

Recession

a period of declining economic activity lasting six of more months

Gross Domestic Product

total market value of all final goods and services produced in a country during a single year

Inflation

a long-term increase in the general level of prices

capitalism

a system in which private citizens own most, if not all, of the means of production ad decide how to use them within legislated limits

socialism

system in which government owns some factors of production and distributes the products and wages

mixed economy

a system combining characteristics of more than one type of economy

traditional economy

an economic system in which the decisions of what, how, and for whom to produce are based on custom or habit

market economy

an economic system in which individuals and businesses own all resources and make economic decisions on the basis of price

command economy

an economic system in which the government makes the major economic decisions

shortage

situation in which the supply of the good or service available is less than the demand for it

surplus

situation in which the amount of a good service supplied by producers is greater than the amount demanded by consumers

equilibrium price

the price set for a good or service in the marketplace, where demand and supply are perfectly balanced

supply and demand

(supply) the amount of goods and services that producers are willing and able to sell at a range of prices (demand) the amount of a good or service that consumers are willing and able to buy over a range of prices

circular flow of economic activity

a model showing how goods, services, and money flow among sectors and markets in the American economy

trade-offs

the alternative you face if you decide to do one thing rather than another

Balance of Trade (Favorable/Unfavorable)

the difference between the value of a nations exports and its imports

Business cycle

alternating periods of economic growth and decline

Comparative Advantage

a countrys ability to produce a good more efficiently than other

Depression

state of the economy with high unemployment, severely depressed real GDP, and general economic hardship

Embargo

an agreement among a group of nations that prohibits them all from trading with a target nation

Exports

to sell goods to other countries

Fiscal Policy

how the government uses taxes and spending to reach economic goals

GDP

total market value of all final goods and services produced in a country during a single year

Imports

to buy goods from another country

Inflation

a long-term increase in the general level of prices

Interest Rate

the payment people or institutions receive when they lend money or allow someone else to use their money

Labor Unions

association of workers organized to improve wages and working conditions

Laissez-Faire  

a belief that government should not interfere in the marketplace

Monetary Policy

manipulation of the money supply to affect the cost of credit, economic growth, and price stability

Real GDP (per capita)

GDP after adjustments for inflation

Recession

a period of declining economic activity lasting six or more months

Reserve requirements

the percentage of a deposit that banks have to set aside as cash in their own vaults or as deposits in their Federal Reserve district bank

Surplus

situation in which the amount of a good or service supplied by producers is greater than the amount demanded by consumers

Tariff

a tax on an imported good

Unemployment rate

the percentage of people in the civilian labor force who are not working but are looking for jobs

Capitalized Interest

Unpaid interest that has been added to the principal balance of a loan

Cosigner

Someone who legally agrees to take responsibility for a person's debt if they cannot repay it

Cost Of Attendance

Total expense of going to college which may include tuition, room and board, fees, books and supplies, transportation, health insurance, etc

Default

Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score

Deferment

A process that allows a borrower to pause their federal student loan payments; interest does NOT accrue during this time period on subsidized loans

Delinquency

Describes the status of being behind on one or more loan payments

Direct Plus Loans

A federal loan available to graduate or professional students and eligible parents of dependent undergraduate students to help pay for the cost of the student's education at participating schools

Direct Subsidized Loan

A federal student loan available to undergraduate students; the federal government pays interest on the loan as long as the student is in school at least part-time

Direct Unsubsidized Loan

A federal student loan available to undergraduate and graduate students; the student is responsible for paying the interest during the time they are in school, which means they must pay that interest while studying or have it rolled into the principal amount of their loan

Disbursement

A portion of a federal student loan that the school pays out by applying the funds to the student's school account or by paying the borrower directly

Entrance Counseling

A mandatory information session which takes place before a student receives their first federal student loan

Expected Family Contribution (EFC)

An index number used to determine your eligibility for federal student financial aid

Exit Counseling

A mandatory information session which takes place when a student graduates, leaves school, or attends school less than half-time

Federal Student Aid

The largest form of student aid in the country; federal aid programs come in the form of government grants, loans, and work-study opportunities

Financial Aid Offer

The total amount of financial aid (federal and nonfederal) a student is offered by a college, designed to help meet a students education costs

Fixed-Rate Loan

A loan with an interest rate that does not change over the life of the loan

Forbearance

A process that allows a borrower to pause their federal student loan payments; interest continues to accrue during this time period and may be capitalized

Free Application for Federal Student Aid (FAFSA)

A free online application that current or prospective college students can submit each year to determine their eligibility for financial aid

Gift Aid

Financial aid that does not have to be paid back, such as scholarships and grants

Grace Period

A period of time during which a borrower is typically not required to make loan payments

Grants

Student aid coming from the state or federal government, the school, or from private sources that does not need to be repaid