Financial Aid:
Glossary

Accrued Interest
Annual Percentage Rate (APR)
Capitalization
Consolidation
Default
Deferment
Delinquency
Disbursement
Employer Reimbursement
Expected Family Contribution (EFC)
Federal Direct Student Loan Program (FDSLP)
Federal Family Education Loan Programs (FFELP)
Financial Need
Forbearance
Free Application For Federal Student Aid (FAFSA)
Grace Period
Graduate PLUS Loans
Grants
Guarantor
Loans
Parent PLUS Loans
Private Loan
Scholarships
Servicer
Student Aid Report (SAR)
Subsidized Loan
Title IV Loan
Title VII Loan
Unsubsidized Loan
Work Study

Accrued Interest
The interest that accumulates on the unpaid principal balance of a college student loan.
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Annual Percentage Rate (APR)
The interest maintained on a college student loan for a one-year period.
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Capitalization
Unpaid accrued interest added onto the principal balance of a loan that increases the total outstanding debt.
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Consolidation
Combining multiple education loans into one new college student loan with a new payment schedule and interest rate.
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Default
The failure to repay a loan in accordance with its terms. This occurs after 270 days of nonpayment on a federal college student loan account or 120 days of nonpayment on a private loan account.
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Deferment
An approved temporary suspension of college student loan payments based on certain events or criteria.
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Delinquency
The failure to make scheduled monthly college student loan payments when they are due.
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Disbursement
A financial transaction that occurs when a lender releases college student loan funds.
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Employer Reimbursement
Many employers will pay 50% and even full tuition reimbursement to help employees with their education.
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Expected Family Contribution (EFC)
The dollar amount that a family is expected to contribute toward a student's educational costs. It is calculated by the federal government and is based on family earnings, assets, students in college and size of family.
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Federal Direct Student Loan Program (FDSLP)
College student loan programs administered by the federal government.
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Federal Family Education Loan Programs (FFELP)
The federal college student loan programs formerly known as the GSL-Guaranteed Student Loan Programs.
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Financial Need
The difference between the student's educational costs and the Expected Family Contribution (EFC). 
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Forbearance
The approved temporary suspension of loan payments, due to a financial hardship, during which interest continues to accrue.
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Free Application For Federal Student Aid (FAFSA)
Students must first complete this application in order to apply for virtually all forms of financial aid assistance, including a college student loan.
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Grace Period
The period after a student either graduates or leaves school and before loan payments must begin.
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Graduate PLUS Loans
A Federal loan program through which graduate students borrow funds to help pay for an education. 
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Grants
Financial aid that does not have to be repaid; aid usually awarded to students based on financial need.
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Guarantor
The agency or institution that insures up-to-permissible limits against loss to lenders in the event of default.
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Loans
College student loans are assistance you do repay. There are many types of loans, each with a different set of criteria and policies. Some may come the federal government, others from private lending institutions.
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Parent PLUS Loans
A federal loan program through which parents of undergraduate students borrow funds to help pay for an education.
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Private Loan
A college student loan that is created through a private lending institution, has a private guarantor, and is not part of the Federal Family Educational Loan Program (FFLEP).
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Scholarships
Financial awards that do not usually have to be repaid; typically given to students based on academic or athletic merit.
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Servicer
An organization that acts on behalf of the lender to administer their college student loan portfolio and is paid a fee to do so.
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Student Aid Report (SAR)
Students receive this report (after filing a Free Application For Federal Student Aid (FAFSA)
that notifies them of their eligibility for federal student aid.
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Subsidized Loan
College student loan for which the federal government pays the accrued interest during any approved deferment periods.
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Title IV Loan
A college student loan made, insured, and guaranteed as part of the Higher Education Act of 1965, and included in the Federal Family Educational Loan Program (FFELP); specifically Stafford, Unsubsidized Stafford, SLS, PLUS, and Consolidation Loans.
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Title VII Loan
A Health Education Assistance Loan made or insured as part of the Public Health Service Act; specifically HEAL or HEALTH loans.
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Unsubsidized Loan
College student loan for which the borrower is responsible for paying the interest that accrues on the loan from the date of disbursement until the loan is paid in full, regardless of enrollment status.
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Work Study
A combination of part-time employment and financial aid (grants, college student loans, and/or scholarships) offered by schools.
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