Trying to apply for student loans can be quite the process. You are going to see a lot of different terms that you may not recognize. To help you out along the way, here are some common student loans terms you need to know and their definitions.
Consolidation – This is a process where you take your student loans and combine them into one loan. It can reduce interest rates and payment.
Financial Award Letter – A special notice that comes from the federal student aid office to let you know which programs and amounts you are going to be given for your college education.
Default – Default is when you fail to pay a student loan on the terms that you already agreed to. There can be some severe consequences if this occurs.
Deferment – This is the period of time when you don’t have to make payments. Usually you can defer payments on student loans until 6 months after you stop going to college full time.
Cost of Attendance – This refers to the total amount that is estimated that the entire attendance to college will end up costing.
Federal Work Study – In addition to loans, federal work study is a program that is funded by the government that allows students to work on campus to make money to go towards their education and expensive.
FAFSA – This is the Free Application for Federal Student Aid. You must fill this out to be eligible for any of the financial aid programs on a federal level.
Subsidized Loans – The interest that accrues on these types of loans are paid by the government while the student is in college at least half time or more.
Unsubsidized Loans – The interest will accrue on these loans and the borrower has to pay on the interest, even when they are going to college. Payments can be made or the interest can be allowed to accrue and then can be put on the balance of the loan.
Myloer is a hobby writer who usually updates his blogs every day and writes about all kinds of topics. His latest project is about tuition credit and you can also read his articles about graduate student loans by following the links.
