Academic Year- a time period of at least 30 weeks of class time. During this time a student is expected to complete at least 24 semester or trimester hours or a minimum of 36 quarter hours.
Borrower- Person who receives a loan.
Consolidation- a loan program were a borrower can combine various educational loans into one loan. This is done by extending the repayment period and making a single monthly payment. This can be a time period up to 30 years and can make the repayment process easier for borrowers.
Deferment- a time period in which a borrower may postpone the principal and interest payments. This is made available for students enrolled at least half time, enrolled in a graduate program, or during periods of economic hardship and unemployment.
Entrance and Exit Interviews- a counseling session that a borrower is required to attend before receiving their first loan disbursement. This is also required upon completing school.
Forbearance- a period of time which is authorized and allows the lender to temporarily postpone a borrower’s principle repayment obligation. During this time interest will continue to accrue and is generally paid during this time period.
Grace Period- a time period that occurs when a student leaves school or is no longer considered at least a half time student. During this six to nine month time period, no loan repayment is required.
Half-Time Enrollment- for an undergraduate is six to eight credit hours and for a graduate student is five to eight hours. Students generally must be enrolled at half time to be eligible for financial aid.
Interest- the fee charged for borrowing money. This is calculated as a percentage on the principal amount. It may be a fixed or variable rate.
Jobs- If you don’t qualify for need based work study, other campus jobs and assistantships may be available.
Lender- a financial institution that provides funding for students and parents to borrow money to cover the cost of educational expenses.
Merit Based Aid- awarded based on a student’s academic and leadership qualifications. This is not a need based form of aid. Student’s grades, test scores, skills, and extracurricular activities are qualifying factors.
Need Based Aid- awarded based on financial circumstances. Can be awarded in the form of grants, loans, and/or work study.
Origination Fee- a fee charged by the federal government and deducted from loan proceeds before the loans are disbursed. This is to offset the administrative costs of the Federal Family Education Loan Program (FFELP).
Promissory Note- a legal document signed by a borrower in order to receive their education loans. It lists conditions that apply to the borrowing and repaying of the loans.
Repayment Schedule- informs a student of their monthly payments, interest rate, total repayment obligations, due dates, and durations of the loans.
Student Aid Report (SAR)- a form a student will receive after they submit their FAFSA. It will show the information that was processed and state eligibility for Pell Grants.
Unsubsidized Loan- a loan were the government does not pay the interest while a student is in school. A student can either let the interest capitalize or pay the monthly interest.
Verification- reviews the accuracy of the information a student submitted on their financial aid application.
Work Study- a financial aid based program where students work on campus or at other nonprofit locations. Students must qualify to participate and are paid no less than minimum wage.
**Extra Credit to anyone who can find terms for the missing letters!!!***