(Unit 2) College & Personal Finances Vocab Flashcards
(27 cards)
Common Application
An undergraduate college
admission application to more than 900 member colleges and universities in the U.S., Canada, China, Japan, and many European countries.
Deferment
A type of payment where you purchase something and
pay for it later.
Forbearance
A type of loan for a temporary suspension of principal payments or to reduce your monthly payment amount for up to 12 months.
- Happens if you do NOT qualify for deferment.
Grace Period
A period of time after a deadline where financial obligation (e.g.: late fee or payment) may be met without penalty or cancellation.
Grants
Financial aid that is given based on financial need.
- does NOT need to be repaid
Scholarships
Financial aid that is given based on merit.
- does NOT need to be repaid
What’s the difference between a scholarship
and a grant?
Scholarships are merit-based and grants are
need-based.
Student Loans
Loans that are given in order to pay for education expenses
and must be paid back at a later time.
Subsidized Loans
Loans that do not accumulate interest while a student is enrolled in
school.
- The interest is paid by the government.
Unsubsidized Loans
Loans that accumulate interest while a student is enrolled in
school. The interest is NOT paid by the government.
Interest Rates
The percentage amount that a lender charges a borrower each year in order to borrow money.
- Price you pay for borrowing money
Private Loan
Loans that are offered by banks and credit unions—NOT the government.
- Private student loans can help you pay for college after you’ve explored scholarships and grants.
- Private loans are credit-based.
Award Letter
A document (“letters”) sent by a college or university providing information on the cost of attendance at a college for an academic year and any grants, scholarships, work-study opportunities, and loans the student is eligible to receive.
Financial Aid
Money that helps pay for education.
- NOTE: Grants, work-study, loans, and scholarships help make educational opportunities (college, career school, etc.) more affordable.
Tuition
The cost of taking classes at your school; your school charges you for the actual instruction.
Graduated Repayment Plan
A federal student loan repayment program for those who expect their incomes to rise over time and want to start by repaying with lower payments.
- Payments start off low and increase every 2 years or so.
Income-based Repayment Plan (IBR)
A federal student loan repayment program that adjusts the amount you owe every month based on your income and family size.
Types of Grants: Federal Pell Grant
A type of federal grant typically awarded to undergraduate students who display exceptional financial need.
- Students have to have earned a bachelor’s, graduate, or professional degree.
- Max. $5775 per year (Amount changes based on the year (For 2023-24: $6,895))
Types of Grants: Federal Supplemental Educational Opportunity Grant
A type of federal grant typically awarded to the most high needs students.
Types of Grants: TEACH grant
A type of federal grant for students who plan on going to teach after college.
Types of Grants: Work Study
A type of federal grant for students who work a part-time job on campus in return for paying off college expenses.
Types of Grants: California Grant (Cal Grant)
A type of financial aid specifically for students attending a UC, CSU, CA community college, or other qualifying schools in California.
Types of Loans: Stafford Loans
A type of low-interest loan with an interest rate range of around 3.86-5.41%.
- Maximum $5.5k per year.
1) Subsidized: The govt. pays the interest rate on your loan while you’re still in school.
2) Unsubsidized: The govt. does NOT pay the interest rate on your loan (Therefore, it will add up)
Types of Loans: Perkins Loans
A type of subsidized loan with a maximum of around $5.5 per year and about a 5% interest rate.
