Unit 3 Vocabulary: Paying for Higher Education

A complete set of 25 vocabulary flashcards covering terms, definitions, and concepts related to paying for higher education.

CSS (College Scholarship Service) Profile

A financial aid application used by some colleges and scholarship programs to award non-federal institutional aid, providing a more detailed financial picture than the FAFSA.

Loan Default

The failure to repay a student loan according to the terms agreed upon when signing the promissory note, which can result in serious consequences including wage garnishment and damaged credit.

Deferment

A temporary postponement of loan payments that borrowers may be eligible for under certain circumstances, such as enrollment in school or economic hardship.

Dependent Student

A student who must provide parental information on the FAFSA because they do not meet the criteria for independent status, typically students under 24 who are unmarried and not supporting dependents.

Direct Consolidation Loan

A federal loan that allows borrowers to combine multiple federal education loans into a single loan with one monthly payment and potentially extended repayment terms.

Direct PLUS Loan

Federal loans available to graduate students and parents of undergraduate students to help pay education expenses not covered by other aid.

Direct Subsidized Loan

A federal student loan for undergraduate students with demonstrated financial need, where the government pays the interest while the student is enrolled at least half-time.

Direct Unsubsidized Loan

A federal student loan available to undergraduate and graduate students regardless of financial need, where interest accrues from the time the loan is disbursed.

FAFSA (Free Application for Federal Student Aid)

The primary application used to determine eligibility for federal, state, and institutional financial aid programs.

Federal Pell Grant

A need-based federal grant program for undergraduate students that does not need to be repaid, with award amounts based on financial need and enrollment status.

Federal Work-Study

A federal program that provides part-time employment opportunities for students with financial need, allowing them to earn money to help pay education expenses.

529 Plan

A tax-advantaged savings plan designed to encourage saving for future education costs, where earnings grow tax-free and withdrawals for qualified education expenses are also tax-free.

Forbearance

A temporary reduction or postponement of loan payments that a lender may grant to a borrower experiencing financial difficulties.

FSA ID

A username and password combination that serves as a legal signature for federal student aid documents and provides access to Federal Student Aid websites.

Grace Period

A set period of time after graduation, leaving school, or dropping below half-time enrollment before loan repayment must begin, typically six months for most federal loans.

Grant

Financial aid based on need or other criteria that does not need to be repaid, provided by federal, state, or institutional sources.

IPEDS (Integrated Postsecondary Education Data System)

A government database that allows students and families to compare colleges based on factors like financial aid, graduation rates, and student outcomes.

Merit-Based Aid

Financial assistance awarded based on academic achievement, talents, or other accomplishments rather than financial need.

Need-Based Aid

Financial assistance awarded based on demonstrated financial need as determined by the FAFSA and other financial aid applications.

SAR (Student Aid Report)

A document that summarizes the information submitted on the FAFSA and indicates the student's Expected Family Contribution (EFC).

Standard Repayment Plan

The basic federal loan repayment option with fixed monthly payments over a 10-year period, typically resulting in the least amount of interest paid over time.

TEACH Grant

A federal grant that provides up to $4,000 per year to students who agree to teach in high-need fields at low-income schools for at least four years. Converts to a loan if teaching requirements are not met.

VGAP (Virginia Guaranteed Assistance Program)

A state-funded grant for financially needy students who graduate from a Virginia high school and plan to attend a Virginia public college or university.

VTAG (Virginia Tuition Assistance Grant)

A state-funded grant for Virginia residents enrolled as full-time, degree-seeking undergraduates.

Wage Garnishment

A legal procedure where a portion of your paycheck is automatically withheld to pay off defaulted student loans or other debts.