Disbursement: the paying out of money from a scholarship, grant, or other source
Emergency Loan: temporary, low- or no-interest loan assistance given to students to help them cover costs until their financial aid is received; usually granted immediately and without question
Grace Period: a period of time after college graduation – typically six to twelve months – in which a student does not have to begin repaying a loan
Interest: a charge for borrowed money; generally a percentage of the amount borrowed (see Principal below)
Loan Consolidation: a repayment option for students with more than one outstanding loan; this lowers monthly payments and makes the repayment process simpler
Loan Default: the failure to repay a loan according to the terms agreed to in the promissory note; a lender may take legal action to get the money back
Loan Deferment: a postponement of a loan’s repayment; many federal loan programs have a deferment program
Loan Delinquency: failure to make loan payments when they are due; extended delinquency can result in loan default
Loan Forgiveness: demand for repayment of the balance of a loan is waived because of extenuating circumstances on the student’s part, such as financial hardship or, in some cases, in compensation for community service
Principal: in terms of loans, this represents the amount of money borrowed, not including any interest charges (see Interest above)
Subsidized Loan: a loan that does not accrue interest until the recipient leaves school
Unsubsidized Loan: a loan that accrues interest while a student is still in school
College Financial Aid for Military Personnel >>>
