Financial Aid Terms, Graduate School Glossary

24/7 Application Processing
Customer service that is offered seven days a week, twenty-four hours a day. Graduate School Loans offers this feature to our borrowers.
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Academic Year
The amount of time, defined by a school, within which a student has to accomplish his or her academic work.
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ACT
A standardized multiple-choice test that is given to high school students. Some colleges and universities require the ACT as an entrance exam. The ACT measures a student's academic aptitude in English, math, reading, and science.
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Accrual Date
The time that a loan's interest begins to accrue.
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Accured Interest
Unpaid interest that collects on the principal balance of a loan is called accrued interest. Some loans such as the Subsidized Stafford and Perkins Loans let the student defer repayment of principal and interest while still in school. If you are eligible for federal interest subsidy, the interest may be paid by the federal government during this period. In case your loan does not qualify for the federal interest subsidy, or if your loan is in forbearance, the unpaid interest amount that accrues while you are not making payments will be added to your loan balance. To limit the growth of your loan balance, you can make some payments toward the accrued interest even when they are not required.
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Additional Education Borrowing
Borrowing more than one loan. You may reconsolidate your previously-consolidated loans with Graduate School Loans if you have additional education borrowing.
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Adjusted Available Income
The income that is left after taxes and basic living allowances has been deducted.
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Advanced Placement
A high school program that allows students to take college classes while they are still in high school. At the end of the classes, students take an exam that allows them to receive college credits for their score on the exam.
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Alternative Loan
Also known as a private loan, this is a loan that is given through private institutions that are not backed by the federal government. They offer relaxed terms, competitive rates, simplified procedures, and a prompt pre-approval credit decision. Credit checks are mandatory to the borrower of alternative/private student loans.
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Amortization
Repayment of a loan in a series of installments over a period of time; for example, monthly payments of principal and interest for the term of the loan.
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Annual Percentage Rate
Measures the total cost of interest that the borrower will pay on the loan each year.
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AP
Refer to "Advanced Placement"
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APR
Refer to "Annual Percentage Rate."
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Assets
Items owned by an individual that can have a cash value. This includes bonds, real estate, stocks, business equipment, etc. When a student or parent is filling out the Expected Family Contribution on the FAFSA, it asks that all assets be considered in the calculation.
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Asset Protection Allowance
A formula used by the U.S. Department of Education and financial aid offices to determine which assets of a student's parents should be excluded by them while calculating the Expected Family Contribution.
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Assistantship
Employment for college students which usually entails participating in departmental research assistance or student teaching.
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Associate Degree
A two-year college degree.
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Auto Debit
A program offered through Graduate School Loans that allows borrowers to make their payments by having them deducted automatically from checking or savings accounts each month. When borrowers take advantage of this benefit, they receive an immediate 0.25% interest rate reduction.
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Automated Debit Payment
Refer to "Auto Debit"
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Award Letter
Letters sent to students from colleges that inform the students as to the amount of financial aid that they have been awarded.
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Bachelors Degree
A four-year college degree.
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Bar Loan
Loan that provides funds to be used for expenses related to taking the bar exam.
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Base Rate
The interest rate prior to any borrower benefits or incentives.
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Borrower
The person who signed the promissory note and is legally obligated to repay the loan.
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Borrower Benefits
These are benefits that lenders offer borrowers, generally as payment incentives, in order to reduce the borrower's interest rate and save his/her money. A .25% rate reduction is currently offered by Graduate School Loans if you use auto-debit to make payments. The 1% rate is reduced even farther after 36 consecutive on-time full payments (principal and interest) are made.
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Bursar's Office
An office at a college that is responsible for collections and billing issues.
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Campus-based Aid
Financial aid that is given to a student from their college, but is partially funded from government programs. The colleges determine which students will receive the aid from these programs. They include Perkins Loans, work-study, Pell Grants, and Supplemental Education Opportunity Grants (SEOG).
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Cancellation
In terms of consolidation, cancellation terminates the consolidation process, keeping the borrower's multiple loans as they were. In regards to loans, cancellation annuls the obligations of the borrower to repay a loan. This only happens in extreme situations.
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Capitalization
When unpaid interest is added to the loan principal, it is called capitalization. In this case, the borrower pays interest on the loan principal as well as on the outstanding unpaid interest.
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Citizenship
Many loans require that you have U.S. Citizenship or Permanent Residency, before you may borrow. This includes being a: U.S. Citizen U.S. National U.S. Permanent Resident with an I-151, I-155, or a I-551C
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COA
Refer to "Cost of Attendance"
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COE
Refer to "Cost of Education"
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Collective Bargaining
Negotiation between students and their colleges or lenders to determine the amount of financial aid that they will receive.
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College Financial Aid
All grants, scholarships, loans, and work-study programs given to students to cover their tuition fees and living expenses for college are considered financial aid. Graduate School Loans helps you to better understand the college financial aid process and offers you complete solutions to your college financial aid needs.
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College Funding
All monies distributed are to be used to help with college costs, including tuition, board and lodgings, books, transportation, and other expenses. Graduate School Loans helps you in understanding the college funding process and offers you solutions that best suit your needs-whether you are student financing your own studies or a parent supporting your child's education.
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College Loan
All monies distributed are to be used to help with college costs, including tuition, board and lodgings, books, transportation, and other expenses. Graduate School Loans gives you a complete solution to college loans. We give Federal Family Education Loans as well as a variety of private loans which cover any of the college financial needs that you may have - whether you are student financing your own studies or a parent supporting your child's education.
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Combination Billing
This repayment plan combines all of your loans into one payment and a single statement each month. However, the terms of the loans, interest rates and payment installments do not change.
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Commercial Lender
For-profit institutions such as banks, or credit unions that give out loans.
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Compound Interest
Refer to "Capitalization"
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Consolidation
Merges multiple loans into a single loan, frequently with a lower monthly payment and a longer payback period. With Graduate School Loans's federal loan consolidation program, you can effectively merge either all or some of your outstanding college loans into a single new loan, even if your present loans are held by more than one lender or are of different types.
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Consolidation Loan
Refer to "Consolidation"
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Cosigner
A cosigner is a signer in addition to the principal borrower who is jointly responsible for the repayment of loan(s); usually necessary when additional security is needed to obtain a loan.
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Cosigner Release
Allows cosigners to be released of his or her obligations to the loan.
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Cost of Education
Cost of Education is the net annual cost of attending a particular school. It includes tuition fees, books, boarding and lodging, food, transportation and personal expenses.
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Cost of Attendance
The total cost associated with attending college. It includes tuition fees, books, room and board, supplies, transportation, and other personal expenses. A student's residency or marital status also helps to determine the Cost of Attendance.
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Credit Check
The report that looks at a potential borrower's credit history and determines his or her credit rating.
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Credit-Based
Implies that a loan lender takes into consideration a potential borrower's credit, prior to lending. Private loans and private consolidations are credit-based.
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Credit Rating
Measures the level of risk for lenders to lend money, using a borrower's previous loan histories, etc. A good credit rating indicates that a borrower is likely to repay the amount that he or she borrows. A poor credit rating shows that there is a higher level of risk associated with lending money to the borrower, due to the increased possibility that the borrower may default on their loan repayment.
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Credit Score
Refer to "Credit Rating"
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Credit Sensitive
Implies that a loan may require a credit check prior to lending to a potential borrower.
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CSS Profile
Also known as the College Scholarship Service this is an application that can be required by some private colleges and universities that helps to determine a student's eligibility for private financial aid.
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Current Balance
The amount that a borrower owes on his or her loans at a specific point of time. This includes principal and interest amounts.
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Current Lender
The existing institution that lends money to a borrower.
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Custodial Parent
When a student's parents are divorced or separated, the custodial parent is the one whom the student has lived with for the last 12 months.
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Debt Consolidation
Also termed consolidation loan, means the replacement of multiple loans with a single loan which may carry a lower monthly installment and a longer payback period. With our federal loan consolidation program, you can merge all or some of your outstanding loans into one, even if they are held by more than one lender, or are of different types.
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Debt Consolidation Also termed as loan consolidation, it is the replacement of multiple loans with a single loan which may carry a lower monthly installment and a longer payback period. With our federal loan consolidation program, you can merge all or some of your outstanding loans into one, even if they are held by more than one lender, or are of different types. ^ Top Default Status for loans that are not repaid in accordance with the repayment terms on the promissory note. ^ Top Deferment The postponement of loan payments for a given period of time. Deferment can be granted under any one of the following conditions: Enrollment in a higher program like a graduate or fellowship program Half-time study Inability to procure a full-time job Admission to an approved rehabilitation counseling program Any other financial hardships ^ Top Deferment Rate Refers to the rate at which some loans are given while they are in deferment status. ^ Top Delinquency A loan that is 30 to 60 days past due with no payments being made. This can result in default. ^ Top Dependency Status For financial aid purposes, the status of a student who is dependent upon his or her parents for financial support. ^ Top Dependent Refers to "Dependent Student" ^ Top Dependent Student A student who, for federal financial aid purposes, is dependent upon his or her parents for support. He/she must provide parental information on the FAFSA. ^ Top Direct Lender Refer to "William D. Ford Federal Direct Student Loan Program." ^ Top Direct Loans Loans given through the William D. Ford Federal Direct Student Loan Program from The Department of Education. Refer "William D. Ford Federal Direct Student Loan Program." ^ Top Direct Loan Program Refer to "William D. Ford Federal Direct Student Loan Program." ^ Top Disbursement The payment of funds, in this case, to a school on behalf of a student to pay education expenses. ^ Top Disclosure Statement A statement of the total cost of your loan, which includes the principal as well as the interest. ^ Top DOE Refer to "William D. Ford Federal Direct Student Loan Program." ^ Top Education Financing Includes all scholarships, grants, loans, and work-study programs offered to a student to cover his or her tuition fees as well as college living expenses. ^ Top Educational Loan Used to meet the cost of college- tuition, boarding and lodging, transportation, and other expenses. ^ Top EFC Refer to "Expected Family Contribution" ^ Top EFT Refer to "Electronic Funds Transfer" ^ Top Electronic Funds Transfer An automated electronic transfer of funds from the bank or the lender. ^ Top Eligible Non-Citizen A U.S. Permanent Resident with an I-151, I-155, or I-551C. This is required for a borrower to borrow federal student loans. ^ Top Eligible Program A field of study that leads to a degree or certificate and also meets the U.S. Department of Education's requirements. ^ Top Entrance Counseling Mandatory counseling for students before receiving a student loan; covers how to manage educational expenses and understand loan responsibilities. ^ Top Enrollment Status A student's status that shows whether a student attends school part-time, half-time or full-time. A student must have at least an enrollment status of half-time to be eligible for most financial aid. In order to be considered full-time, a student must carry a minimum of 12 credit hours. To be considered half-time, a student must carry a minimum of 6 credit hours. ^ Top E-sign Refer to "E-signature" ^ Top E-signature Also known as electronic signature, this is a binding contract that allows borrowers to complete an application online, rather than "wet signing" the physical application. Graduate School Loans offers this feature to our borrowers to help make the application process quick and simple.