Loans Fundamentals
What is money borrowed that must be repaid, usually with accrued interest.
What is a Loan?
Funding intended to help students pay for post-secondary education expenses.
What is Financial Aid?
Financial support provided by a government or body to reduce the burden of costs (e.g., paying interest while in school).
What is Subsidized?
A record of a borrower's responsible repayment of debts.
What is Credit History?
The original amount of money borrowed or invested, excluding interest.
What is the Principal?
The difference between the cost of attending a school and a family's calculated ability to pay.
What is Financial Need?
Financial aid where the borrower is responsible for paying all accrued interest from the date of disbursement.
What is Unsubsidized?
n assessment of how likely a borrower is to default on their debt obligations.
What is Creditworthiness?
What it the charge for borrowing money, typically expressed as an annual percentage rate.
What is Interest?
An established organization, particularly one dedicated to education (e.g., a college or university).
What is an Institution?
Accumulating or receiving payments or interest over time.
What is Accruing?
An individual who signs a joint loan agreement and agrees to pay the debt if the primary borrower defaults.
What is a Cosigner?
A rate, number, or amount in each hundred; used to calculate interest rates.
What is Percentage?
A sum of money given by an organization or government for a specific purpose that does not need to be repaid.
What is a Grant?
A set period after a deadline or graduation during which a payment can be made without penalty.
What is a Grace Period?
A structured schedule setting out the size and timing of payments to clear a debt.
What is a Repayment Plan?
An amount of money borrowed by one party from another that is owed.
What is Debt?
To change the form, character, or function of something (e.g., a grant turning into a debt due to non-compliance).
What is convert?
A legal or moral duty or commitment to pay or perform an action.
What is Obligation?
Failure to fulfill an obligation, especially to repay a loan according to agreed terms.
What is Default?