Paying for College Vocabulary Quiz

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

• Interest Rate

• Capitalized Interest

• Ad Valorem Taxes

• Variable-rate Loan

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

• Loan Servicer

• Cosigner

• Disbursement

• Principal

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.

• Room And Board

• Cost of Attendace

• Federal Student Aid

• Net Price

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

• Forbearance

• Tuition

• Default

• Deferment

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

• Default

• Disbursement

• Forbearance

• Deferment

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

• Forbearance

• Default

• Delinquency

• Deferment

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

• Direct Plus Loans

• Grants

• Direct Subsidized Loan

• Pell Grant

Federal Student Aid the largest form of student aid in the country; federal aid programs come in the form of government grants, loans, and work-study opportunities

• True

• False

Grace Period is a period of time during which a borrower is typically not required to make loan payments. It generally begins on the day after a borrower graduates, leaves school, or drops below half-time enrollment. This period typically lasts 6 to 9 months but can vary.

• True

• False

Net Price is the sticker price for the academic portion of your college expenses, which does not include room and board, textbooks, or other fees

• True

• False