Assignment 4 - College Grants and Loans

Unsubsidized

A loan that will charge you interest from the start

Subsidized

A loan where you will not be charged any interest before you begin repayment

Interest

A percentage of the amount loaned which is a charge for the use of the money

Grace period

A time when there is no obligation to repay your loan

Federal Pell Grant

Assistance from the government which is not to be repaid

Genuine student loans

FFEL Stafford Loan, USA Student Loan, Pickett and Hatcher Educational Loan

Default

Failure to fulfill a financial obligation

Financial aid

Financial assistance for the potential college student

Federal student aid

Government financial help; it may be in the form of a grant or a loan

Deferment

Official permission to postpone the payments of a loan

Expected Family Contribution

The assumed amount that the family will contribute to the student's college tuition

Capitalized

The interest is added to the principal amount of your loan