Loan Terms
This is the amount you borrow before interest is added.
What is Principal?
A number that measures your reliability to repay borrowed money.
What is a Credit Score?
Always apply for this type of “free money” before taking loans.
What are Scholarships and Grants?
The standard repayment plan lasts this long.
What is 10 years?
The cost of borrowing money, usually shown as a percentage.
What is Interest?
One way to keep your credit healthy is to do this every year for free.
What is Check your credit report?
Buying used books or renting them is one way to do this.
What is Save money?
This plan starts with lower payments that increase every few years.
What is the Graduated Repayment Plan?
This loan type doesn’t accrue interest while you’re in school.
What is a Subsidized Loan?
Paying bills late can lower this.
What is your Credit Score?
Instead of a meal plan you rarely use, this can stretch your budget further.
What is Meal prepping?
This plan bases your monthly payment on your income.
What is an Income-Driven Repayment Plan?
This period is the time after graduation before you must start repaying loans.
What is the Grace Period?
This is the biggest factor influencing your credit score.
What is Payment history?
Joining this type of organization can lead to scholarships and leadership experience.
What is a Campus Club or Organization?
Making payments on time helps you build this.
What is Good Credit?
This organization or company manages your student loan repayment.
What is a Loan Servicer?
Defaulting on student loans can hurt this for up to 7 years.
What is your Credit Record?
Tracking your spending each month helps you create this.
What is a Budget?
Paying a little more each month helps reduce this cost over time.
What is Interest?
You graduate with $25,000 in student loans at 5% interest. If you pay $25 extra a month, you’ll save approximately this much in interest.
What is around $1,200–$1,500?