Student Loan Consolidation Glossary

STUDENT LOAN CONSOLIDATION GLOSSARY

A

Academic merit

Proven ability or accomplishment at college/university.

Accumulated interest

The collected interest.

Application

A request, as for assistance, employment, or admission to a school.

Assets

Anything of monetary value that is owned by a person; Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).

Award letter

Information about what type of financial aid you qualify for, and the amount of money you can receive by scholarships, grants, federal or private loans or working-study programs (if you have applied for a work-study program), including a possible combination of all types of financial aid.

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B

Balance

Equal debit and credit: a position where the amounts on the debit and credit sides of an account are equal and cancel each other out.

Bank

A business that keeps money for individuals or companies, exchanges currencies, makes loans, and offers other financial services.

Bankrupt

A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.

Borrower

Receive money as loan: to arrange to be given money by somebody or by a bank or other financial institution for a fixed period of time. The money is normally paid back in instalments, with interest.

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C

Capital

Material wealth: material wealth in the form of money or property.

Charge

The price of something that is for sale, or the fee asked for a service or in payment of a financial liability such as a tax.

Cheque (check)

Paper money substitute: a small printed form that, when filled out and signed, instructs a bank to pay a specified sum of money to the person named on it.

Conditions

Something stated as necessary for agreement.

Confiscated

Taken without permission or consent especially by public authority.

Consolidation

Combination into single mass: the combination of separate items or scattered material into a single mass.

Consolidation loans

Combination of several existing loans into one new loan from a single lender, using this new loan lender to pay off the balances on the other loans received from financial institutions or from the federal government.

Cost of attendance

An estimate of all the expenses that the student will pay during the academic year in the school or college the student is going to study. This includes: tuitions and fees, books, housing, food, transport and personal expenses.

Credit cooperatives

An association that provides credit on reasonable terms and at affordable rates of interest.

Credit history

History of an individual's debt payment; lenders use this information to gouge a potential borrower's ability to repay a loan.

Creditor

Somebody owed money: a person or organization owed money by another.

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D

Debt

Something that is owed: an amount of money, a service, or an item of property that is owed to somebody.

Debt situation

State of owing something: the condition of owing something to somebody.

Default report

Information with the failure to do something: a failure to meet an obligation, especially a financial one.

Deferment

Postpone: to put something off until a later time.

Direct loan

A loan by a lender to a customer without the use of a third party; direct lending gives the lender greater discretion in making loans.

Discharged

The act or an instance of removing an obligation, burden, or responsibility.

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E

Education

The knowledge or skill obtained or developed by a learning process.

Educational institution

The imparting and acquiring of knowledge through teaching and learning, especially at a school or similar institution.

EFC (Expected Family Contribution)

The amount of financial support a family is expected to contribute toward a child’s college education. This amount is part of the formula used by the federal government to determine financial aid eligibility using the FAFSA form.

Electronic application

An online/web application.

Electronic payment

An online/web payment.

Eligible

Qualified: entitled or qualified to do, be, or get something.

Enrolment deadline

Time limit of the official act or process of entering your own or another person’s name on a register or membership list.

Enrolment admission

The state of being allowed to enter; the price required or paid for entering.

Expenses

Amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures).

Extended repayment period

The time to pay back money, which is continued for a long period of time depending on the total amount borrowed.

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F

FAFSA (Free Application for Federal Student Aid)

A form required by the government for application to any federal education aid program. The FAFSA is used to determine the expected family contribution based on family financial information. A FAFSA is used to determine the specific Federal Student Aid programs that can contribute to a student's total financial aid package and in what proportions.

Family education loan

Funds for these programs are provided by private lenders and the loans are guaranteed by the federal government.

Federal

Central: relating to a political unit established on a federal basis, especially its central government.

Federal government

The central government of a federation.

Federal loan

Loans guaranteed by the US government.

Federal plus loan

The Federal PLUS Loan is an affordable, low-interest loan designed to help parents pay for their child's college education. This is a government loan meaning that it is guaranteed (or insured) by the federal government. The loan allows the parent to fund the entire cost of education.

Federal subsidized loan

The Federal government pays the interest on a Federal Subsidized student loan during in School status, grace period, and authorized deferment periods. To qualify for a Federal Subsidized student loan, a student must demonstrate financial need.

Financial institutions

Banking, Insurance, Investment Banking, Savings Institutions, Trust Companies.

Financial need

The difference between the students’ cost of attendance and the expected family contribution. The formula is Expected Family Contribution – Cost of Attendance.

Fine

Money extracted as a penalty.

Fixed interest rate

An interest rate that does not change during the loan term.

Form

A document, usually with blank spaces for answers or information to be supplied.

Fraud

Crime of cheating people: the crime of obtaining money or some other benefit by deliberate deception.

Funds

Available money, ready cash, saved or invested for a particular purpose. An organization that manages a sum of money for a particular purpose.

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G

Grace period

A specified period of time after a student leaves school or drops below half-time status during which he or she is not required to make payments on either principle or interest. The grace period is typically six to nine months, depending on the type of loan. The Federal Subsidized Stafford Loan, for example, has a six-month grace period.

Graduates

Somebody who has completed a course of studies: somebody who has obtained a diploma or degree after completing a course of study, for example, from high school or college.

Grants

Financial help provided to a school or other educational establishment by central government.

Gross income

A person's total income prior to exclusions and deductions an individual’s income before tax is paid.

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H

High school counsellor

Adviser on special subject: a professional who gives advice on such matters as careers, education, or health.

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I

Income

The amount of money received over a period of time either as payment for work, goods, or services, or as profit on capital.

Income sensitive repayment

A repayment program in which the size of the monthly payments depends on the income earned by the borrower. As the borrower's income increases, so do the payments.

Initial charge

A charge imposed by a fund management company to cover administrative and marketing costs, and to pay for any commission that had to be paid to an intermediary.

Instalment

One of a number of successive payments in settlement of a debt.

Institution

An established organization or foundation, especially one dedicated to education, public service, or culture.

Interest

The charge you pay if you borrow money, and the income you receive if you lend it or invest it in an income-producing bank account or in a security like a bond or gilt.

Interest charges

Is the amount of money that you pay to the credit card issuer for borrowing their money; It is calculated by using an Annual Percentage Rate (APR).

Interest rate

The percentage of an amount of money, which is paid for its use for a specified time.

Internet

Global computer network: a network that links computer networks all over the world by satellite and telephone, connecting users with service networks such as e-mail and the World Wide Web.

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L

Lender

Let somebody borrow something: to allow somebody to take or use something on the understanding that it will be returned later.

Loan

An amount of money given to somebody on the condition that it will be paid back later. A sum of borrowed money (principal) that is generally repaid with interest.

Loan consolidation

A new loan that is created by combining the repayment of two or more student loans to reduce the amount of monthly payments and extend the loan repayment term.

Loan forbearance

Good-natured tolerance of delay or incompetence the temporary provision of money (usually at interest).

Loan forgiveness

A student's loan debt can be "forgiven" (or written off) by the Federal Government under certain circumstances. These circumstances include: the borrower's school closes while he/she is attending, the borrower becomes permanently disabled, or the borrower becomes deceased. Documentation of the situation is required and eligibility is determined by the guarantor.

Loan holder

The current owner of the loan.

Loan repays

Payment of the borrowed money.

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M

Money order

A written order for the payment of a sum to a named individual; obtainable and payable at a bank or post office.

Mortgage loan

Loan to finance the purchase of real estate, usually with specified payment periods and interest rates. The borrower (mortgagor) gives the lender (mortgagee) a lien on the property as collateral for the loan. The mortgagor's lien on the property expires when the mortgage is paid off in full.

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N

Negotiable

Exchangeable for money: used to describe financial instruments, for example, checks and securities, that can be transferred to another person in exchange for money.

NSLDS (National Student Loan Data System)

A system of the federal government which houses a student's federal educational loan borrowing history. All lenders are required to report a student's loan information to this database system.

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O

Obligations

Something such as assistance or a debt that somebody owes in return for something given.

Online

Connected to a computer network.

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P

Part time job

A temporary job.

Payment

A sum of money paid.

Penalty

A punishment established by law or authority for a crime or offence.

Pending capital

The money which has not yet taken care of, not yet dealt with, decided, or settled.

Perkins loan

A federal subsidized loan.

PIN (Personal Identification Number)

A multi-digit number unique to an individual that is used, with a card, to get money from an ATM or to gain access to a computer or telephone system.

Postgraduate program

Program for a student with bachelor’s degree: a program for somebody who has graduated from a university or college with a bachelor’s degree, especially one who is doing further study.

Postpone loan repayment

A delay of the repayment of the borrowed amount.

Procurement expenses

Purchasing of services or materials, especially from a company, government, or other organization.

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R

Rate

A measure of a part with respect to a whole; a proportion.

Reimbursement

Pay back money to somebody: to pay somebody back money spent for an official or approved reason or taken as a loan, or give somebody money as compensation for loss or damage.

Repayment

A sum of money, especially one of a series of instalments, paid back by a borrower to a lender.

Repayment plan

A plan to repay delinquent payments, agreed upon between a lender and borrower, in an effort to avoid foreclosure.

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S

SAR (Student Aid Report)

The form a student receives after filing a FAFSA. The SAR notifies the student of his/her eligibility for federal student aid.

Scams

To obtain money from somebody by dishonest means, A fraudulent business scheme; a swindle.

Scholarship

An award of financial aid that typically does not have to be paid back. A scholarship is usually awarded to students who demonstrate or show promise of high achievement in an area such as academics, athletics, or a special discipline.

Service

Work done by one person or group that benefits another.

Social Security Number

The number of a particular individual's social security account individual’s reference number: in the United States, a unique reference number assigned to everyone within the Social Security system. It remains the same throughout each person’s life.

Stafford federal loan

A low interest and long term loan (normally lasts for 10 years) with many benefits to the student. Interest may vary but there’s a limit to how much it can grow: 8.75 %. Interest is reviewed on July 1st every year, and it’s guaranteed by the federal government through the education department.

Student loan

Student loans are loans offered to students to assist in payment of the costs of professional education. These loans usually charger lower interest than other loans, and are also usually issued by the government.

Subsidized loan

The government pays the interest on the loan while the student is in school, during the six-month grace period, and during any deferment period. Subsidized loans are awarded based on financial needs and may not be used to finance the family contribution. The Perkins Loan and the Subsidized Stafford Loan are subsidized loans.

Subsidy

Help with expenses: a monetary gift or contribution to somebody or something, especially to pay expenses.

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T

Temporarily postpone payment

Delay of payment for a limited duration.

Tuition

A fee paid for instruction (especially for higher education).

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U

Undergraduate student

Student studying for a first degree: student at a university or college who has not yet received a degree.

Unemployed

Being involuntarily out of work. The government defines unemployed as people who are jobless, looking for jobs, and available for work.

Unfulfilled repayment

The payment which has not been realized.

Unsubsidized loan

A student loan for which the student is responsible for paying the interest that accrues from the date the fund are disbursed to the date the loan is paid in full, regardless of the student’s enrolment status.

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V

Volunteers

Somebody who works for free, without being paid.

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