Unit 3 Vocab - Personal Finance/Econ

CSS (College Scholarship Service) Profile

Online financial aid application made and managed by the College Board.

Loan Default

Failure to repay a loan according to the terms of a promissory note. When a borrower stops making the required payments on a loan for a long period of time; long enough to break the legal agreement with the lender.

Deferment

A temporary pause/delay in making loan or debt payments.

Dependent Student

A student whose parents are legally and financially responsible for supporting them, especially when paying for school/college.

Direct Consolidation Loan

Free government program that combines multiple federal student loans into a singular new loan with just one monthly payment.

Direct PLUS Loan

Federal loans from the U.S. Department of Education that parents of dependent undergraduate students can use in order to pay for college costs that aren’t covered by other financial aid.

Direct Subsidized Loan

Federal student loan for those who are undergraduates and show financial needs, so the U.S. government pays the interest while undergraduates are in school.

Direct Unsubsidized Loan

Federal student loan where the student is responsible for paying all the interest from the moment the money is sent to their school.

FAFSA (Free Application for Federal Student Aid)

Single most important document for receiving financial aid. Free online form that college students fill out in order to apply for financial aid for school.

Federal Pell Grant

Financial award from the U.S. government given to undergraduates who are in need of financial aid.

Federal Work-Study

Provides part-time jobs to students with financial need Administered by the school Eligibility determined by FAFSA Earnings may be used to help pay for educations or meet daily living costs

529 Plan

A tax-advantaged savings plan designed to help families save for education.

Forbearance

Temporary agreement between lender and borrower that reduces monthly loan payments due to short-term financial hardships (e.g. Job loss, medical emergency, etc.)

FSA ID

(Federal Student Aid Identification) -- A secure user/password combo created through the U.S. Department of Education. Serves as a legally binding signature.

Grace Period

A set amount of time after a payment due date when you can pay without getting charged any sort of late fee/consequence.

Grant

The sum of money from the government, a foundation, or organization given to a person, business, or nonprofit for a specific project or need.

IPEDS (Integrated Postsecondary Education Data System)

A national database that collects financial/operational data from almost every college, university, etc. within the U.S. that allows federal student financial aid.

Merit-Based Aid

Financial aid awarded to a student based on their personal information like skills, talents, achievements, etc.

Need-Based Aid

Financial aid awarded to a student based on their family’s income, assets, and overall financial situation within the household.

SAR (Student Aid Report)

A document including feedback after submitting your FAFSA.

Standard Repayment Plan

The default payment schedules for federal student loans, only paying a fixed monthly amount in order to pay off debt within 10 years.

TEACH Grant

Teacher Education Assistance for College & Higher Education

VGAP (Virginia Guaranteed Assistance Program)

Purpose: encourage low-income VA students to pressure higher education.

Eligibility: 

• Must be a VA resident

• VA High school graduate

• Demonstrate financial need via FAFSA

• Enroll full-time at a VA public institution

Benefits: covers up undergraduate tuition, required fees, etc.

VTAG (Virginia Tuition Assistance Grant)

A state-funded financial aid program that lends out money to residents of Virginia in order to help with paying for full-time colleges within Virginia. It’s a type of grant--doesn’t need to be paid back. 

Wage Garnishment

The legal process where an employer is required by a court/government agency to receive a portion of an employee’s paycheck and send it directly to a creditor in order to pay off an unpaid debt.