Post Secondary Education Vocab

direct federal loan

Loans available from the U. S. government issued under the William D. Ford Federal Direct Loan Program

direct PLUS loan

Loans made to parents of dependent students; interest is charged once the loan is disbursed. This loan requires a credit check

EFC; Expected family contribution

The dollar amount that a family is expected to pay toward a student’s educational costs, based on family earnings, assets, students in college, and family size

FSEOG; Federal Supplemental Educational Opportunity Grant;

Grant money provided by the federal government for schools to award to students who demonstrate exceptional financial need

grant

Financial aid that is typically based on need and does not have to be repaid

pell grant

A sum of money awarded by the federal government to students who display exceptional financial need

private student loan

Education funding from banks, credit unions, and lenders other than the federal government

satisfactory progress

An eligibility requirement for borrowers, established by schools, to receive federal student aid 

student loan servicer

A company assigned to handle the billing and other services on a private or federal student loan

subsidized loan

A federal loan for which the government pays the interest while you are in school at least half-time, during your post-graduation grace period, and if you need a loan deferment

TEACH; Teacher Education Assistance for College and Higher Education

Grants to students who are completing or plan to complete course work toward a teaching career. Requires recipients to agree to complete four years teaching as a condition for receiving a grant

unsubsidized loan

A federal loan for which the borrower is responsible to pay interest as soon as the loan is received

work study

Part-time jobs for students with financial need, allowing them to earn money to help pay education expenses

APR

The cost of credit for one year expressed as a percentage

COA

tuition and fees, room and board, allowances for books and supplies, transportation, and personal and incidental expenses are included

capitalization

Adding unpaid, outstanding interest to the principal balance of a loan when the borrower postpones paying interest

cosigner

A person who agrees to repay the loan in the event the primary borrower does not; a cosigner is considered a co-borrower and is equally responsible for repayment of the loan

credit check

 A written report issued by a credit bureau that contains relevant information about a person’s creditworthiness

creditworthiness

 A lender’s determination that a credit applicant is likely to repay the loan according to the terms

default

Failure to make payments or to meet the terms and conditions of the loan’s promissory note

deferment

A time when a borrower is not required to make any payments. Interest continues to accrue and will be added to the principal balance

disbursement

The delivery of loan funds to the school or the borrower. Loan disbursements are generally credited to the student’s account at the school

fixed interest rate

An interest rate that remains the same for the life of the loan

forebearance

A temporary postponement of payments

grace period

A period of time when the student is not required to make student loan payments, usually for six or nine months after graduation, but also when dropping below half-time status or withdrawing from school

in school payments

 Financial aid that is typically based on need and does not have to be repaid

privacy

The ability to control the information that is shared about you

principal

The original amount of money disbursed plus the interest capitalized during the life of the loan

promissory note

A legally binding agreement the borrower (and cosigner) sign, in which there is a promise to repay a loan, with interest, in periodic installments

repayment period

The amount of time the borrower is scheduled to repay the principal balance and interest on a loan

variable interest rate

An interest rate that may change periodically throughout the life of the loan