29 terms

Paying For College (PFC)

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Award Letter
A letter that outlines your financial aid package from the college(s) to which you applied, detailing your federal, state, institutional and private aid
Cost Of Attendance
Total expense to go to college which may include tuition, room and board, fees, books and supplies, computer costs, transportation to/from home, health insurance, etc.
Direct Plus Loans
A federal loan available to graduate or professional students and eligible parents of dependent undergraduate students to help pay for the cost of the student's education at participating schools
Direct Subsidized Loan
A student loan that the federal government pays interest on as long as the student is in school at least half-time
Direct Unsubsidized Loan
A student loan where the student is responsible for the interest during the time they are in school, which means they must pay that interest while studying or have it rolled into their loan
Expected Family Contribution (EFC)
Measure, appearing on your Student Aid Report, of your family's financial strength and how much the college expects your family to cover of your college expenses
Federal Student Aid
The largest form of student aid in the country, federal aid programs come in the form of government grants, loans, and work-study opportunities
Free Application For Federal Student Aid (FAFSA)
A form prepared annually by current or prospective college students to determine their eligibility for financial aid
Grants
Student aid coming from the state or federal government, the college itself, or from private sources that does not need to be repaid
Interest Rate
The rate charged for borrowing money usually expressed as a percent of the amount borrowed
Loan Servicer
The organization that collects payments on a federal student loan, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a loan on behalf of a loan holder
Net Price
Actual expenses that a student pays in order to attend college, which is calculated as the sticker price of a college minus the financial aid received
Pell Grant
A Federal program based on substantial financial need and which does not need to be repaid
Perkins Loans
A Federal loan for students who demonstrate substantial financial need
Principal
Original amount of money borrowed, separate from interest or fees
Promissory Note
A contract signed by the student agreeing to pay back all student loan obligations
Repayment Period
The maximum time period over which you must repay your student loan -- currently between 10 and 30 years for Federal loans
Room And Board
Cost of housing and food while at college
Scholarship
Type of aid primarily awarded for academic merit (good grades) or for something you have accomplished (volunteer work, athletics, etc) that does not need to be repaid
Student Aid Report (SAR)
The report you will receive once you submit your FAFSA, which will contain your EFC, Pell Grant eligibility, and all other information that colleges will use to determine your financial aid package
Tuition
Sticker price for the academic portion of your college expenses, which does not include room and board, textbooks, or other fees
Work Study
A program that provides funds to eligible students in exchange for part-time employment to help finance the costs of postsecondary education
Capitalized Interest
Unpaid interest that has been added to the principal balance of a federal student loan
Default
Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score
Delinquency
Describes the status of being behind on one or more loan payments
Disbursement
A portion of a federal student loan that the school pays out by applying the funds to the student's tution and fees and then by paying the borrower directly for any remaining funds
Grace Period
A period of time that generally begins on the day after a borrower graduates, leaves school, or drops below half-time enrollment and ends on the day before the repayment period begins; borrower typically is not required to make payments during this time
Master Promissory Note (MPN)
A legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan holder
Payback
A simulation of the Paying For College process. Kick off discussions about the real costs of college with peers, parents and teachers. Play at timeforpayback.com
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