Glossary of Terms
Sometimes referred as the systemic payment plan -- such as a monthly payment -- so that your loan is paid off over the specified loan period.
Includes all of the books and equipment required to take the course of study and other required course materials, such as printing, copying and computer costs as determined by the financial aid office.
A repayment incentives or rewards programs which are typically interest rate discounts and account credits offered by some lenders or loan programs for making timely repayment.
An itemized forecast of income and expenses commonly broken into monthly or semester/quarter intervals and typically covering a one year period.
The process by which the lender applies accrued interest to the principal of the loan.
Established by the financial aid office, it is a breakdown of expenses required to complete the curriculum for an academic year. Includes tuition and fees, room and board, books and supplies, miscellaneous costs, and personal costs.
Is a period of time when you do not have to make payments on your student loans.
Expenses that are incurred for nonessentials. May include entertainment, shopping, dining-out, etc.
Costs incurred by a person. Includes living and food costs, transportation, debt payments, entertainment, etc. When attending school expenses also include tuition, fees and books. See also Discretionary Expenses, Non-discretionary Expenses, Routine Expenses and Non-routine Expenses.
Is a program which combines several student loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans.
Federal Family Education Loan Program (FFELP). Also referred to as Federal Stafford loans which include both subsidized and unsubsidized loans. Subsidized Stafford loans are based on need, and the interest in paid by the federal government while the student is in school and during approved deferment periods. Unsubsidized Stafford loans are not based on need, and the borrower is responsible for the interest, but may defer making payments on the interest while in school and during approved deferment and/or forbearance periods based upon approval by the lender.
Interest rate which is fixed and will not change throughout the life of the loan.
Is a period of time a lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment.
A period of time usually after graduation during which the borrower is not required to begin repaying his or her student loans. The grace period also occurs when a borrower withdraws from school or drops below half-time enrollment. Depending on the type of loan, you will have a grace period of six months (Stafford Loans) or nine months (Perkins Loans) before you must start making payments on your student loans.
The lender, institution, or agency that originated the loan and holds its legal title, or a lender or secondary market that purchased the loan from the original holder.
The bank, savings and loan, credit union, or other approved entity from which a borrower obtains a loan.
The academic year or portion thereof for which the applicant is enrolled and is seeking one or more loans.
Is the difference between the indices used and the interest rate you will be charged. For example, if the interest rate is the 91 day T-Bill plus 2.0%, the margin is 2.0%.
Educational expenses not included as part of tuition, living expenses or books and supplies.
This is the legally binding contract between the borrower and the lender of a Federal Stafford Loan. By signing the MPN, the borrower agrees to all terms and conditions, including the responsibility to repay all borrowed funds along with any interest and fees that are charged. Unlike other promissory notes where only one loan can be borrowed per signed note, the MPN may be used by the school to make multiple Federal Stafford Loans to a borrower using the single note for up to a 10 year period.
NSLDS is the U.S. Department of Education’s central database for student aid records. NSLDS provides a centralized, integrated view of your federal Title IV education loans and grants, tracking from when they’re approved through final repayment of your loans. May be accessed using a PIN. Web address: http://www.nslds.ed.gov
Expenses that an individual must pay. May include rent or mortgage payments, utility bills, and credit card payments.
Expenses that are not regular or customary, and therefore not built into a spending plan/budget. May include car repair or unexpected medical costs.
Costs included in the financial aid budget associated with living. Might include haircuts, clothing, dry cleaning, telephone, cleaning products, toiletries, entertainment, etc.
Costs in the financial aid budget associated with housing, food and utilities. May be the cost of the residence hall and a meal plan or the rental of an apartment, utilities and the cost of food. Check with the financial aid office to make sure you understand what is covered under Room and Board.
Expenses that occur on a regular basis, and therefore should be built into a spending plan/budget. Might include food costs, dental checkups, car payments, etc. While the expenses occur regularly, the amounts may vary from month to month.
An organization that buys loans from lenders, thereby providing the lender with the capital to issue new loans.
A company specializing in handling billing, collections, deferments, etc.
Costs included as part of the financial aid budget. May include a public transportation pass, gas, car insurance, routine maintenance and parking fees.
Costs included as part of the financial aid budget. The cost of classes or the number of credit hours during an academic period usually dictate the cost of tuition. Some schools use enrollment status full-time or half-time status.
Interest rate that changes periodically during the life of the loan. Under the Stafford Loan Program, the interest rate changes annually on July 1 based on the 91-Day T-Bill plus a margin.
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