Personal Finace

Vocab

Entrance Counseling

A mandatory information session which takes place before a student receives their first federal student loan. It explains their rights and responsibilities as a student borrower.

Cost of Attendance

Total expense of going to college which may include tuition, room and board, fees, books and supplies, transportation, health insurance, etc. Also known as Sticker Price or a school's published price.

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

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

Free Application For Federal Student Aid

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

Grants

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

Interest Rate

The rate charged for borrowing money usually expressed as a percent of the amount borrowed

Loan Servicer

The organization that collects payments on a loan, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a loan on behalf of a loan holder

Pell Grant

A federal grant usually awarded to undergraduate students who display exceptional financial need and have not earned a bachelor's, graduate, or professional degree. This grant does not have to be repaid.

Principal

Original amount of money borrowed, separate from interest or fees

Promissory Note

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

Repayment Period

The maximum time period over which you must repay your student loan -- currently between 10 and 30 years for Federal loans

Room and Board

Cost of housing and food while at college

Scholarship

A type of aid primarily awarded for academic merit (good grades) or for something you have accomplished (volunteer work, athletics, etc) that does not need to be repaid

FAFSA Submission Summary

A report you receive with the information you submitted in your FAFSA. It contains your SAI and other information that colleges will use to determine your financial aid package.

Tuition

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

Work Study

A federal program that provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses

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

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. Students generally receive their federal student loans in more than one disbursement.

Grace Period

A period of time during which a borrower is typically not required to make loan payments. It generally begins on the day after a borrower graduates, leaves school, or drops below half-time enrollment. This period typically lasts 6 to 9 months but can vary.