Financial Literacy

Prime Rate

The rate at which credit card companies charge their more trustworthy customers

Bankruptcy

The state of being bankrupt or having no value.

Loan

You are borrowing something from someone that you have to payback.

0% Introductory APR (Credit)

A 0 percent introductory purchase APR means you won't be charged interest on your purchases for a certain period of time as determined by your credit card company.

PELL GRANT

A Pell Grant is money the government provides for students who need it to pay for college. Grants, unlike loans, do not have to be repaid

Introductory Offers

A Short offer or discount to get new customers

Mastery Promissory Note (MPN)

A binding legal document that you must sign when you get a federal student loan, makes you promise to pay back your loan.

Checking Account

A checking account is a deposit account held at a financial institution that allows withdrawals and deposits.

Credit Card Reform Act

A law that requires credit card companies to be transparent

Direct Subsidized Loan

A loan based on financial need for which the federal government generally pays the interest that accrues while the borrower is in an in-school, grace, or deferment status.

Direct Unsubsidized Loans

A loan for which the borrower is fully responsible for paying the interest regardless of the loan status.

Student Loan Deferment

A postponement of payment on a loan.

Federal vs Private Student Loans

Federal student loans have more benefits than a private student loan. Private student loans often are at banks/institutions.

FAFSA Form

Free Application for Federal Student Aid determines the amount of family contribution and student need

Minimum Monthly Payment

Making the monthly minimum payment on time is the least a consumer needs to do to avoid late fees and to have a good repayment history on his credit report.

Credit

Money that you do NOT have; you are basically borrowing it, and need to pay it back

Mortgage

Monthly house payment

Early Mortgage Payoff

Paying just a little extra each month has a huge end effect

Loan Principal

How much i owe on the loan- this does not include interest

Balance Transfer

It's an offer from a company to transfer your debt to another card

Loan Entrance Counseling

A mandatory information session, which takes place before you receive your first federal student loan; entrance counseling explains your responsibilities and rights as a student borrower.

Credit Score

A number assigned to a person that indicates to lenders their capacity to repay a loan. Your adult gpa, ranges approximately from 300-850

Variable Rate

A variable interest rate is an interest rate on a loan or security that fluctuates over time

Amortization

Amortization is the process of paying off a balance over time with regular, equal payments(loan and principal).

Savings Account

An account that when money is deposited in earns interest.

APR

An annual percentage rate is the annual rate charged for borrowing or earned through an investment, and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.

Bank Deposit

Bank deposits consist of money placed into banking institutions for safekeeping.

Amortization Calculator

Being able to calculate how much i will really pay for the "THING" in the long run.

Debit Card

a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase

Fixed Rate

a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan.

Balance transfer Offer

simply, it means moving the outstanding debt from one piece of plastic to another card, usually a new one

Interest Rate

the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.