Unit 4 - College

EPF Vocab

Direct Subsidized loan

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

Direct unsubsidized loan

A federal loan available to understaduate and graduate students; the student is responsible for paying interest during the time they are in school

Direct Plus Loan

Federal loan available to graduate students and elible parents of undergraduate students to help pay for the costt of the student’s education

Scholarships

Type of aid awarded for good grades or for voluunteer work, athetlics, etc, that does NOT need to be repaid

Grants

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

Pell Grants

A federal grant usually awarded to undergruaduate students who display exceptional financial need and have not earned a bachelo'r’s, gruaduate, or professional degree. Does NOT need to be repaid.

Work Study

part time jobs for students with financial need, allowing them to earn money to help pay educational expenses

Private student loan

(bad one) a non federal student loan made by a bank, credit union, etc, which sets the terms and conditions for the interest rate, grace period, and length of repayment, highest interest rate

G.I. Bill

Education benefits for service memebers and veterans. Usually covers tuition, textbooks, living expenses. Does NOT have to be repaid

Cost of Attencance (COA)

Total expense/sticker price of going to college

Default

Long term failure to repay a loan

Deferment

A process that allows a borrower to paude their federal student loan payments’ interest does NOT accrue during this tmie period on subsidized loans

Forbearance

A process that allows a borrow to pause their federal student oan payment; interest CONTINUES to accrue

Delinquency

Behind one or more loan payments - NOT DEFAULT

Disbursement

Applied to the student’s school account or payed to the brrower directly

Free Application for Federal Student Aid (FAFSA)

Oline application that college students submit each year to determine their eligibility for financial aid

Submission Summary

A d student c for federal student aid

Financial Aid offer

total amount of financial aid offers

Tuition

sticker price for all of college expenses (NOT room and board, textbooks, or other fees)

sticker price

Total expense of going to college (also known as COA)

Net price

actual cost a student pays to attend a school (sticker price - grants & scholarships)

Pay Over Tuition (P.O.T Score)

A system used to compare different degree and career choices

Master promissory note

A legal document which a borrow p

Grace period

Time that you don’t have to make payments (6-9 months)

Loan consolidation

allows a borrower to COMBINE multiple federal loans into one, allowing them to make one monthly payment