Studied by 70 peopleEntrance 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
Note
Flashcard