Unit 4 Extended Vocabulary

Private Lender

• A government agency that provides loans to students.

• A non-governmental organization, such as a bank, that offers loans to students for educational expenses.

• A charitable organization that gives scholarships to students.

• A private individual who lends money without any formal agreement.

Federal Direct PLUS Loan

• A federal loan available to graduate students or parents of dependent undergraduates to help pay for educational expenses.

• A type of loan specifically for undergraduate students only.

• A loan that requires a credit check and is available to anyone regardless of education level.

• A federal grant that does not need to be repaid.

Consolidation Loan

• A loan that combines multiple federal student loans into one loan, simplifying repayment.

• A type of loan used for purchasing a home.

• A loan that is only available for private education expenses.

• A short-term loan with high interest rates.

Need-Based Aid

• Financial aid given based on a student’s financial situation, typically determined through the FAFSA.

• Financial aid that is available to all students regardless of their financial situation.

• Scholarships awarded based on academic merit and achievements.

• Loans that must be repaid regardless of financial need.

Subsidy

• Financial support provided by the government to reduce the cost of something, such as interest on a loan.

• A tax imposed on goods and services to generate revenue for the government.

• A loan provided by the government with no interest attached.

• A grant given to individuals for personal expenses.

Default

• The act of repaying a loan ahead of schedule.

• The failure to repay a loan according to the terms agreed upon in the promissory note.

• A type of loan that has no interest.

• A legal term for a loan that is fully paid off.

Repayment Term

• The total amount of interest paid over the life of the loan.

• The period over which a loan must be repaid, typically expressed in months or years.

• The initial amount borrowed from the lender.

• The fees associated with processing a loan application.

Income-Driven Repayment Plan

• A repayment plan for federal student loans where monthly payments are based on the borrower’s income and family size.

• A fixed repayment plan that requires equal monthly payments regardless of income.

• A plan that allows borrowers to defer payments until they find a job.

• A repayment plan that offers a discount for early payment.

Merit-Based Aid

• Financial aid awarded based on academic, artistic, athletic, or other achievements, rather than financial need.

• Financial aid awarded solely based on financial need.

• A type of loan that must be repaid after graduation.

• Scholarships that are available only to international students.

Entrance Counseling

• A mandatory information session for students who are taking out federal student loans, explaining the terms of the loan and their rights and responsibilities.

• An optional workshop for students to learn about budgeting and financial planning.

• A meeting with a financial advisor to discuss personal savings strategies.

• A seminar on the benefits of private student loans over federal loans.