Paying for College Vocabulary

What is Capitalized Interest?

• Unpaid interest added to the principal balance of a loan

• A type of loan for undergraduate students

• A fee charged for late payments

• A grant given to students

Who is a Cosigner?

• A person who receives a loan

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

• A financial advisor

• A loan officer

What does Cost Of Attendance include?

• Only tuition fees

• Tuition, room and board, fees, books, supplies, transportation, health insurance, etc.

• Only room and board

• Only health insurance

What is Default in terms of loans?

• Early repayment of a loan

• Long-term failure to repay a loan according to the terms agreed to

• A temporary pause in loan payments

• A reduction in loan interest

What is Deferment?

• A process that allows a borrower to pause their federal student loan payments

• A penalty for late payments

• An increase in loan interest

• A type of scholarship

What does Delinquency describe?

• The status of being ahead on loan payments

• The status of being behind on one or more loan payments

• The process of applying for a loan

• The approval of a loan application

What are Direct Plus Loans?

• Loans for undergraduate students only

• A federal loan available to graduate or professional students and eligible parents of dependent undergraduate students

• A type of grant

• A scholarship for high-achieving students

What is a Direct Subsidized Loan?

• A loan where the student pays interest while in school

• A federal student loan available to undergraduate students where the government pays interest while the student is in school

• A loan for graduate students only

• A private loan with high interest

What is a Direct Unsubsidized Loan?

• A loan where the government pays the interest

• A federal student loan where the student is responsible for paying the interest while in school

• A grant for undergraduate students

• A scholarship for part-time students

What is Disbursement in terms of student loans?

• The process of applying for a loan

• 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

• A penalty for late payments

• A reduction in loan interest