college planning vocabulary

chapter 7

private student loans

loans made by banks, credit unions, or other organizations with terms and conditions set by the lender, including higher or variable interest rates.

federal student loans

loans made by the government with terms and conditions set by law, often have a lower fixed interest rate.

subsidized loans

federal student loans that are based on a student’s financial need and don’t accrue interest for a set period of time.

unsubsidized loans

federal student loans that aren’t based on a student’s financial need and start accruing interest immediately.

deferred

when debt payments are held off for or until a certain time and no interest accrues

forbearance

debt payments are held off for or until a certain time but interest continues to accrue.

FAFSA

Free Application for Federal Student Aid is the federal application required to receive any financial aid, including scholarships, grants, or loans offered through a college, or university

gift aid

any form of financial aid that doesn’t need to be repaid like grants, work-study, and certain scholarships.

student aid report

A document that shows whether or not you are eligible for federal student aid

financial aid award letter

a letter sent by a college or university that explains attendance costs and details about a student’s financial aid package

scholarship

financial aid that does not need to be repaid, usually awarded based on achievements

work study

a program that allows students to work part time while continuing their studies

grant

financial aid that does not need to be repaid, usually based on financial need

academic scholarship

an award presented to students who display high educational excellence

CLEP

College Level Examination Program is a set of tests that qualify students to earn college credit if they pass them

ROI

Return on Investment: the measurement of gain or loss generated on an investment relative to the amount of money invested

net price

the total cost of education expenses needed for a student to attend an educational institution

completion rate

the percentage of students who finish the program that they began

unemployment rate

the percentage of the labor force, or specific demographic, that’s jobless and looking for work

post secondary education

all education that takes place after high school, including university, college, community college, certification, or trade school

bachelor’s degree

an undergraduate degree from a college or university, usually completed after four or five years of study

prerequisite

a course that needs to be completed before a student can enroll in a second course

associate degree

a two or three-year post secondary undergraduate degree