Terminology Flash Cards 1-Paying For College

Front

Capitalized Interest

Back

Unpaid interest that has been added to the principal balance of a loan

Front

Cosigner

Back

Someone who legally agrees to take responsibility for a person's debt if they cannot repay it

Front

Cost Of Attendance

Back

Total expense of going to college which may include tuition, room and board, fees, books and supplies, transportation, health insurance, etc. Also known as Sticker Price or a school's published price.

Front

Default

Back

Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score

Front

Deferment

Back

A process that allows a borrower to pause their federal student loan payments; interest does NOT accrue during this time period on subsidized loans

Front

Delinquency

Back

Describes the status of being behind on one or more loan payments

Front

Direct Plus Loans

Back

A federal loan available to graduate or professional students and eligible parents of dependent undergraduate students to help pay for the cost of the student's education at participating schools

Front

Direct Subsidized Loan

Back

A federal student loan available to undergraduate students; the federal government pays interest on the loan as long as the student is in school at least part-time

Front

Direct Unsubsidized Loan

Back

A federal student loan available to undergraduate and graduate students; the student is responsible for paying the interest during the loan period.

Front

Disbursement

Back

A portion of a federal student loan that the school pays out by applying the funds to the student's school account or by paying the borrower directly. Students generally receive their federal student loans in more than one disbursement.