G to Z
G
Gift Aid
Any form of financial aid which does not need to be repaid, such
as scholarships and grants.
Grace Period
The period of time that begins when a borrower graduates (or
ceases to be enrolled at least half-time) and ends when repayment
must begin. The grace period for most student loans is six
months.
Guarantor
A state agency or private, not-for-profit organization that
insures lenders against losses due to a borrower's default,
death, disability, or bankruptcy.
Guarantee (or Insurance)
Fee
An insurance fee that the guarantor charges the lender, and is
usually paid by the borrower.
I
Independent Student
Any student who meets any one of the following criteria: is at
least twenty-four years old, is enrolled in graduate or
professional school, has legal dependents other than a spouse, is
a ward or orphan of the court, is a veteran of the U.S. armed
forces, or is married.
Interest
The amount charged for the use of loan funds over a period of
time and is usually stated as a percent.
L
Lender
The financial institution that makes a loan.
M
Merit-Based Aid
Any form of financial aid which is based on achievement in a
given area, such as academics or athletics.
N
Need Analysis
The process of determining a student's financial need by
reviewing information submitted on the FAFSA, the CSS PROFILE, or
any other financial aid form.
O
Origination Fee
A processing fee charged to a borrower by a lender to make the
loan. This fee, like the guarantee fee, is usually subtracted
from the amount of the loan proceeds.
Outside Scholarship
Any scholarship not awarded directly by the school a student is
attending.
P
Principal
The amount of the loan funds borrowed.
Promissory Note
A binding legal document that lists the conditions under which
the loan is made and the terms under which the borrower agrees to
pay back the loan.
R
Repayment Schedule
A plan that sets forth the monthly payment amount, interest rate,
and terms of a student loan.
S
Secondary Market
Institutions that buy loans from a lender, providing capital so
lenders can make additional loans. Secondary markets are
responsible for managing and servicing purchased loans.
Self-Help Aid
Any form of financial aid which is needs to be repaid or earned,
such as student loans and graduate assistantships.
Student Aid Report
(SAR)
Document that reports the information submitted on the FAFSA and
indicates the Expected Family Contribution.
Subsidized Loan
When a student takes out a subsidized loan, the government (or
other entity) pays the interest on that loan while the student is
in school and for a specified "grace period" after the student
graduates or leaves school.
U
Unmet Need
Describes a situation in which a school's financial aid package
does not meet a student's demonstrated financial need.
V
Variable Interest
Interest rates which change periodically, according to government
guidelines, U.S. Treasury Bills, or other economic
indicators.
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