Financial Aid Terms, Graduate School Glossary

24/7 Application Processing
Customer service that is offered seven days a week, twenty-four hours a day. Graduate School Loans offers this feature to our borrowers.
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Academic Year
The amount of time, defined by a school, within which a student has to accomplish his or her academic work.
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ACT
A standardized multiple-choice test that is given to high school students. Some colleges and universities require the ACT as an entrance exam. The ACT measures a student's academic aptitude in English, math, reading, and science.
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Accrual Date
The time that a loan's interest begins to accrue.
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Accured Interest
Unpaid interest that collects on the principal balance of a loan is called accrued interest. Some loans such as the Subsidized Stafford and Perkins Loans let the student defer repayment of principal and interest while still in school. If you are eligible for federal interest subsidy, the interest may be paid by the federal government during this period. In case your loan does not qualify for the federal interest subsidy, or if your loan is in forbearance, the unpaid interest amount that accrues while you are not making payments will be added to your loan balance. To limit the growth of your loan balance, you can make some payments toward the accrued interest even when they are not required.
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Additional Education Borrowing
Borrowing more than one loan. You may reconsolidate your previously-consolidated loans with Graduate School Loans if you have additional education borrowing.
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Adjusted Available Income
The income that is left after taxes and basic living allowances has been deducted.
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Advanced Placement
A high school program that allows students to take college classes while they are still in high school. At the end of the classes, students take an exam that allows them to receive college credits for their score on the exam.
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Alternative Loan
Also known as a private loan, this is a loan that is given through private institutions that are not backed by the federal government. They offer relaxed terms, competitive rates, simplified procedures, and a prompt pre-approval credit decision. Credit checks are mandatory to the borrower of alternative/private student loans.
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Amortization
Repayment of a loan in a series of installments over a period of time; for example, monthly payments of principal and interest for the term of the loan.
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Annual Percentage Rate
Measures the total cost of interest that the borrower will pay on the loan each year.
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AP
Refer to "Advanced Placement"
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APR
Refer to "Annual Percentage Rate."
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Assets
Items owned by an individual that can have a cash value. This includes bonds, real estate, stocks, business equipment, etc. When a student or parent is filling out the Expected Family Contribution on the FAFSA, it asks that all assets be considered in the calculation.
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Asset Protection Allowance
A formula used by the U.S. Department of Education and financial aid offices to determine which assets of a student's parents should be excluded by them while calculating the Expected Family Contribution.
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Assistantship
Employment for college students which usually entails participating in departmental research assistance or student teaching.
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Associate Degree
A two-year college degree.
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Auto Debit
A program offered through Graduate School Loans that allows borrowers to make their payments by having them deducted automatically from checking or savings accounts each month. When borrowers take advantage of this benefit, they receive an immediate 0.25% interest rate reduction.
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Automated Debit Payment
Refer to "Auto Debit"
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Award Letter
Letters sent to students from colleges that inform the students as to the amount of financial aid that they have been awarded.
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Bachelors Degree
A four-year college degree.
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Bar Loan
Loan that provides funds to be used for expenses related to taking the bar exam.
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Base Rate
The interest rate prior to any borrower benefits or incentives.
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Borrower
The person who signed the promissory note and is legally obligated to repay the loan.
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Borrower Benefits
These are benefits that lenders offer borrowers, generally as payment incentives, in order to reduce the borrower's interest rate and save his/her money. A .25% rate reduction is currently offered by Graduate School Loans if you use auto-debit to make payments. The 1% rate is reduced even farther after 36 consecutive on-time full payments (principal and interest) are made.
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Bursar's Office
An office at a college that is responsible for collections and billing issues.
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Campus-based Aid
Financial aid that is given to a student from their college, but is partially funded from government programs. The colleges determine which students will receive the aid from these programs. They include Perkins Loans, work-study, Pell Grants, and Supplemental Education Opportunity Grants (SEOG).
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Cancellation
In terms of consolidation, cancellation terminates the consolidation process, keeping the borrower's multiple loans as they were. In regards to loans, cancellation annuls the obligations of the borrower to repay a loan. This only happens in extreme situations.
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Capitalization
When unpaid interest is added to the loan principal, it is called capitalization. In this case, the borrower pays interest on the loan principal as well as on the outstanding unpaid interest.
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Citizenship
Many loans require that you have U.S. Citizenship or Permanent Residency, before you may borrow. This includes being a: U.S. Citizen U.S. National U.S. Permanent Resident with an I-151, I-155, or a I-551C
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COA
Refer to "Cost of Attendance"
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COE
Refer to "Cost of Education"
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Collective Bargaining
Negotiation between students and their colleges or lenders to determine the amount of financial aid that they will receive.
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College Financial Aid
All grants, scholarships, loans, and work-study programs given to students to cover their tuition fees and living expenses for college are considered financial aid. Graduate School Loans helps you to better understand the college financial aid process and offers you complete solutions to your college financial aid needs.
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College Funding
All monies distributed are to be used to help with college costs, including tuition, board and lodgings, books, transportation, and other expenses. Graduate School Loans helps you in understanding the college funding process and offers you solutions that best suit your needs-whether you are student financing your own studies or a parent supporting your child's education.
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College Loan
All monies distributed are to be used to help with college costs, including tuition, board and lodgings, books, transportation, and other expenses. Graduate School Loans gives you a complete solution to college loans. We give Federal Family Education Loans as well as a variety of private loans which cover any of the college financial needs that you may have - whether you are student financing your own studies or a parent supporting your child's education.
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Combination Billing
This repayment plan combines all of your loans into one payment and a single statement each month. However, the terms of the loans, interest rates and payment installments do not change.
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Commercial Lender
For-profit institutions such as banks, or credit unions that give out loans.
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Compound Interest
Refer to "Capitalization"
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Consolidation
Merges multiple loans into a single loan, frequently with a lower monthly payment and a longer payback period. With Graduate School Loans's federal loan consolidation program, you can effectively merge either all or some of your outstanding college loans into a single new loan, even if your present loans are held by more than one lender or are of different types.
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Consolidation Loan
Refer to "Consolidation"
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Cosigner
A cosigner is a signer in addition to the principal borrower who is jointly responsible for the repayment of loan(s); usually necessary when additional security is needed to obtain a loan.
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Cosigner Release
Allows cosigners to be released of his or her obligations to the loan.
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Cost of Education
Cost of Education is the net annual cost of attending a particular school. It includes tuition fees, books, boarding and lodging, food, transportation and personal expenses.
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Cost of Attendance
The total cost associated with attending college. It includes tuition fees, books, room and board, supplies, transportation, and other personal expenses. A student's residency or marital status also helps to determine the Cost of Attendance.
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Credit Check
The report that looks at a potential borrower's credit history and determines his or her credit rating.
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Credit-Based
Implies that a loan lender takes into consideration a potential borrower's credit, prior to lending. Private loans and private consolidations are credit-based.
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Credit Rating
Measures the level of risk for lenders to lend money, using a borrower's previous loan histories, etc. A good credit rating indicates that a borrower is likely to repay the amount that he or she borrows. A poor credit rating shows that there is a higher level of risk associated with lending money to the borrower, due to the increased possibility that the borrower may default on their loan repayment.
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Credit Score
Refer to "Credit Rating"
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Credit Sensitive
Implies that a loan may require a credit check prior to lending to a potential borrower.
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CSS Profile
Also known as the College Scholarship Service this is an application that can be required by some private colleges and universities that helps to determine a student's eligibility for private financial aid.
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Current Balance
The amount that a borrower owes on his or her loans at a specific point of time. This includes principal and interest amounts.
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Current Lender
The existing institution that lends money to a borrower.
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Custodial Parent
When a student's parents are divorced or separated, the custodial parent is the one whom the student has lived with for the last 12 months.
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Debt Consolidation
Also termed consolidation loan, means the replacement of multiple loans with a single loan which may carry a lower monthly installment and a longer payback period. With our federal loan consolidation program, you can merge all or some of your outstanding loans into one, even if they are held by more than one lender, or are of different types.
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Debt Consolidation Also termed as loan consolidation, it is the replacement of multiple loans with a single loan which may carry a lower monthly installment and a longer payback period. With our federal loan consolidation program, you can merge all or some of your outstanding loans into one, even if they are held by more than one lender, or are of different types. ^ Top Default Status for loans that are not repaid in accordance with the repayment terms on the promissory note. ^ Top Deferment The postponement of loan payments for a given period of time. Deferment can be granted under any one of the following conditions: Enrollment in a higher program like a graduate or fellowship program Half-time study Inability to procure a full-time job Admission to an approved rehabilitation counseling program Any other financial hardships ^ Top Deferment Rate Refers to the rate at which some loans are given while they are in deferment status. ^ Top Delinquency A loan that is 30 to 60 days past due with no payments being made. This can result in default. ^ Top Dependency Status For financial aid purposes, the status of a student who is dependent upon his or her parents for financial support. ^ Top Dependent Refers to "Dependent Student" ^ Top Dependent Student A student who, for federal financial aid purposes, is dependent upon his or her parents for support. He/she must provide parental information on the FAFSA. ^ Top Direct Lender Refer to "William D. Ford Federal Direct Student Loan Program." ^ Top Direct Loans Loans given through the William D. Ford Federal Direct Student Loan Program from The Department of Education. Refer "William D. Ford Federal Direct Student Loan Program." ^ Top Direct Loan Program Refer to "William D. Ford Federal Direct Student Loan Program." ^ Top Disbursement The payment of funds, in this case, to a school on behalf of a student to pay education expenses. ^ Top Disclosure Statement A statement of the total cost of your loan, which includes the principal as well as the interest. ^ Top DOE Refer to "William D. Ford Federal Direct Student Loan Program." ^ Top Education Financing Includes all scholarships, grants, loans, and work-study programs offered to a student to cover his or her tuition fees as well as college living expenses. ^ Top Educational Loan Used to meet the cost of college- tuition, boarding and lodging, transportation, and other expenses. ^ Top EFC Refer to "Expected Family Contribution" ^ Top EFT Refer to "Electronic Funds Transfer" ^ Top Electronic Funds Transfer An automated electronic transfer of funds from the bank or the lender. ^ Top Eligible Non-Citizen A U.S. Permanent Resident with an I-151, I-155, or I-551C. This is required for a borrower to borrow federal student loans. ^ Top Eligible Program A field of study that leads to a degree or certificate and also meets the U.S. Department of Education's requirements. ^ Top Entrance Counseling Mandatory counseling for students before receiving a student loan; covers how to manage educational expenses and understand loan responsibilities. ^ Top Enrollment Status A student's status that shows whether a student attends school part-time, half-time or full-time. A student must have at least an enrollment status of half-time to be eligible for most financial aid. In order to be considered full-time, a student must carry a minimum of 12 credit hours. To be considered half-time, a student must carry a minimum of 6 credit hours. ^ Top E-sign Refer to "E-signature" ^ Top E-signature Also known as electronic signature, this is a binding contract that allows borrowers to complete an application online, rather than "wet signing" the physical application. Graduate School Loans offers this feature to our borrowers to help make the application process quick and simple. ^ Top Exit Counseling Required counseling before graduating or leaving college; explains students' rights and responsibilities as a Direct Loan borrower. ^ Top Expected Family Contribution The amount of money your family is expected to contribute to your college education for one year. It is not just your parent's contribution; you and your parents share the responsibility to paying for college. ^ Top Expected Graduation Date The day that a borrower anticipates completing his or her schooling. ^ Top FAFSA Refer to "Free Application for Federal Student Aid" ^ Top FFELP Refer to "Federal Family Education Lending Program" ^ Top Federal Consolidation Refer to "Federal Student Loan Consolidation" ^ Top Federal Consolidation Loan Refer to "Federal Student Loan Consolidation" ^ Top Federal Family Education Lending Program A program that allows private lenders to provide federal loans to students that are backed by the federal government. FFELP loans are the largest federal source of financial aid for college. It is made up of the following parts: Stafford Loan Subsidized Stafford loans are available to students who demonstrate financial need. Unsubsidized Stafford loans are available to students regardless of their financial need. PLUS loans Parents can borrow up to the total cost of their children's undergraduate education, less financial aid from other sources. Federal Consolidation Loans Borrowers can consolidate their federal education loans into one loan with a single monthly payment and, depending on their outstanding loan balance, extend their repayment period. ^ Top Federal Financial Aid All federal aid including: scholarships, grants, loans, and work-study, given to students to meet their cost of education and living expenses. ^ Top Federal Loan Refer to "Federal Student Loan" ^ Top Federal Loan Consolidation Refer to "Federal Student Loan Consolidation" ^ Top Federal Graduate PLUS Loan Refer to "Graduate PLUS Loan" ^ Top Federal Grants Refer to "Grants" ^ Top Federal Perkins Loan Refer to "Perkins Loan." ^ Top Federal PLUS Loan Refer to "PLUS Loan" ^ Top Federal Stafford Loan Refer to "Stafford Loan" ^ Top Federal Student Aid Student financial aid provided through the federal government. Federal student aid can be in the form of grants, loans, and work-study aid. ^ Top Federal Student Loan Loans given to college students and their parents that are backed by the federal government. These are offered through the Federal Family Education Loan Program (FFELP). ^ Top Federal Student Loan Consolidation Merges multiple federal student loans into one, easy-to-manage loan. With Graduate School Loans's federal loan consolidation program, you can effectively merge either all or some of your outstanding college loans into a single new loan, even if your present loans are held by more than one lender or are of different types. ^ Top Federal Work-Study Refer to "Work-Study Program" ^ Top Financial Aid A general term that includes all types of money, loans, and work-study programs offered to a student to help pay tuition costs and living expenses. ^ Top Financial Aid Administrator Refer to Financial Aid Officer ^ Top Financial Aid Officer Responsible for advising and counseling students regarding financial aid, and overseeing their financial aid packages. ^ Top Financial Aid Package The total amount of financial aid that a student receives. This includes both federal and private funding. ^ Top Financial Need The Cost of Attendance minus the Expected Family Contribution. ^ Top Fixed Interest Rate An interest rate the borrower locks into at the origination of the loan which does not change during the term of the loan. ^ Top Forbearance Allows borrowers to temporarily suspend payments or make a reduced payment amount, do to inability to make monthly payments. Interest continues to accrue during any period of forbearance. ^ Top Forgiveness Programs Also known as student loan repayment programs, these programs relieve students and graduates from a portion or all of their student loans in exchange for working for a specified period of time. Forgiveness programs can be provided by the federal government, state government, military, and other various organizations and agencies across the country. ^ Top Free Application for Federal Student Aid The official application students must use to apply for federal aid. ^ Top Full Deferment A status in which the borrower is not obligated to pay either interest or principal amount. This status is available when the student is in an "in-school status." ^ Top Grace Period A specified period of time after a student leaves school or drops below half-time status during which he or she is not required to make payments on either principle or interest. The grace period is typically six to nine months, depending on the type of loan. ^ Top Graduate PLUS Loan A federal loan for graduate and professional students. This loan is another version of the PLUS loans for parents of undergraduate students. The Graduate PLUS Loan can pay a borrower the total COA, minus any other financial aid received. It is however, credit-based. ^ Top Graduate Program University programs for students who have completed their undergraduate or bachelor's degrees. ^ Top Graduate Student A student enrolled in a graduate program. ^ Top Graduated Repayment Repayment terms calling for gradual increase in the payments on a closed-end obligation. ^ Top Grants Monetary federal financial aid that does not require repayment. Grants are need-based financial aid. ^ Top Guarantee Fee A fee paid to the guaranty agency to insure the loan. The amount of the fee is deducted from the dollar amount of the loan. ^ Top Guarantor See "Guaranty Agency" ^ Top Guaranty Agency An organization that insures student loans for banks and administers the student loan insurance program for the federal government. ^ Top Government Student Loan Student loans provided through the federal government. ^ Top Half-Time Enrollment A student's school enrollment status when the student is taking at least 6 credit hours. Most financial aid requires that a student be enrolled at least half time to qualify. ^ Top Home Equity The principal on a home minus the current market value. ^ Top HOPE Tax Credit A tax credit subtracted directly from the tax owed, instead of being subtracted from taxable income like a tax deduction. You cannot get a refund for the Hope Credit if you do not pay taxes. ^ Top Income Verification Process to confirm one's annual wages. Some private student loans require income verification. ^ Top Income-Sensitive Repayment Method of repayment in which the amount of monthly payments is based on the borrower's income. Payments must cover at least the interest, which accrues between payments. ^ Top In-School Interest Rate The rate at which interest accrues when a student is in at least a half-time enrollment status. This rate is usually lower than when the loan is in its repayment status. ^ Top Independent Status The status of a student who is: 24 years or older, is a graduate or professional student, is married, has legal documents, is an orphan or ward of the court; or is a veteran of the U.S. Armed Forces. ^ Top Interest The price paid by a borrower for the use of a lender's money. The original amount lent is called the principal, and the percentage of the principal which must be paid annually as interest is called the interest rate. ^ Top Interest Period The amount of time that interest accrues on a loan. ^ Top Interest Rate The percentage of the principal which must be paid annually by a borrower for its use. ^ Top Interest Rate Reduction When the overall interest rate of a loan or consolidation is lowered. Graduate School Loans offers interest rate reductions of up to 1.25%. ^ Top Independent Student Someone who is one of the following: 24 years of age or older; an orphan; a ward of the court; a veteran of the U.S. Armed Forces; is married; has a child; is a graduate or professional student; or has serious family circumstances. ^ Top Interest-Only Payment Payment that covers only accrued interest that is owed on a loan and none of the principal balance. ^ Top Internship A work-related learning experience for individuals who wish to develop hands on-work experience in a certain occupational field. ^ Top Lender An institution, such as banks and credit unions, that lends money. ^ Top LIBOR Stands for London Interbank Offered Rate. This is a financial index that some private lenders use to determine the interest rates on their private loans. ^ Top Lifetime Learning Tax Credit A federal income tax credit of as much as $1,000 per household annually; available to eligible taxpayers based on "out-of-pocket" tuition and fee expenditures, according to income eligibility guidelines. ^ Top Line of Credit An additional amount of credit with a prearranged limit. ^ Top Loan Lending money to a borrower for a specific amount of time, with the understanding that the borrower will repay the money lent. ^ Top Loan Counselor Refer to "Loan Specialist" ^ Top Loan Holder The agency or company that "owns" the loan the borrower is or will be repaying. It should be noted that because some lenders sell their loans to other companies, the initial lender and the loan holder may not be the same company. ^ Top Loan Principal The initial amount of money borrowed, given by the lender as a loan. ^ Top Loan Specialist A Graduate School Loans professional who helps borrowers consolidate their student loans into one easy-to-manage loan. When a borrower consolidates with Graduate School Loans, he or she will have a loan specialist assigned specifically to him or her. The loan specialist will then be the borrower's main point of contact when he or she has questions or concerns about his or her consolidation or loans. ^ Top Loan Type The kind of loan that is borrowed. Because loans vary, borrowers may choose one of the several federal loans or perhaps a private loan. ^ Top Loan Verification Certificate An official document that verifies all of the borrower's federal student loans with a specific lender/servicer. ^ Top London Interbank Offer Rate Also, known as LIBOR, this is a financial index that some private lenders use to determine the interest rates on their private loans. ^ Top LVC Refer to Loan Verification Certificate ^ Top Master Promissory Note A document that a borrower must sign when borrowing a loan. This outlines the terms of the loan. ^ Top Masters Degree A degree that is usually awarded to students who complete two additional years of schooling after they earn their Bachelor's degrees. ^ Top Marketing Company A company that acts as a middle man by marketing loans to potential borrowers and then finds companies to sell loans to borrowers. Graduate School Loans is NOT a marketing company, but a true lender! This ensures that our borrowers' loans are handled by experts and not just marketers. ^ Top Maturity Date The date in which a loan reaches its maximum payment period. At this time the loan must be paid in full. ^ Top Merit-based Aid Financial aid that is awarded to students based on merit, such as good grades, leadership, community service, etc. Many scholarships are merit-based aid. ^ Top Minimum Monthly Payment The least amount that can be paid each month to repay a borrower's loans. Graduate School Loans offers several flexible repayment options that can help borrowers who want to pay the minimum monthly payment on their loans. ^ Top Monthly Payment The amount that a borrower must pay each month as repayment of his or her loan(s). ^ Top MPN Refer to "Master Promissory Note" ^ Top National Student Loan Data System A database through the U.S. Department of Education. NSLDS provides lenders with information on a borrower's loans that is received from schools, agencies, and other federal programs. ^ Top Need The Cost of Attendance minus a student's Expected Family Contribution. ^ Top Need-Based Aid Aid that is given to students based on their financial need. ^ Top Need-blind Admissions A policy in which a school's admissions department does not take into consideration a student's inability to pay for their schooling when deciding on his or her acceptance into the school. ^ Top Needs Analysis An amount determined by FAFSA that shows the amount that a student's family can afford to contribute towards the student's schooling. ^ Top NSLDS Refer to "National Student Loan Data System." ^ Top Non-Citizen A person who is not a United States citizen. ^ Top Non-portable Funding Financial aid that is specific to a certain college or university. This means that it cannot be transferred to another college. The student will lose the aid if he or she chooses to transfer. ^ Top Online Application A feature on Graduate School Loans that allows our potential borrowers to complete their entire application online with our convenient e-signature option. ^ Top Originator The initial financial institution or company that begins a loan before reselling them. ^ Top Origination Fee A fee that the borrower must pay to the lender to cover administrative fees on a loan. ^ Top Parental Contribution The amount that a student's parent(s) are able to contribute to the student's schooling costs. ^ Top Payment Incentives Presently, a 0.25% reduction in interest rates is offered by Graduate School Loans for using auto-debit and an additional 1.0% interest rate reduction is given after 36 consecutive full payments have been made on time. ^ Top Payment Schedule The schedule of a borrower which lists the monthly installment, interest rate, total repayment obligation, and the length of time for the repayment. ^ Top Pell Grant Monetary financial aid that does not need to be repaid. Awarded through the government or one's school. Pell grants are awarded solely on demonstrated financial need to every eligible undergraduate student who hasn't already earned a bachelor's or professional degree. The amount of the Pell grant will depend on financial need, college costs, and whether enrollment is full-time or part-time. ^ Top Perkins Loan A federal student loan that has one of the lowest interest rates. Perkins Loans are awarded to students with exceptional financial need. The student must have applied for a Pell Grant to be eligible. The interest on the Perkins Loan is subsidized while the student is in school. ^ Top PLUS Loan The Parent Loans for Undergraduate Students are available to parents of dependent students, regardless of financial need. Parents are responsible for interest that accrues during any period. ^ Top Podcast Audio interviews, offered by Graduate School Loans's website, that provide listeners with important information pertaining to the student loan industry and student loan consolidations. ^ Top Portable Funding Financial aid that is not specific to a certain college or university. This allows it to be transferred to another college, should the student transfer. ^ Top Prepayment Penalties Fees that are incurred when a borrower repays his or her loan prior to the length of the loan. Graduate School Loans's consolidations programs do NOT have prepayment penalties. ^ Top Prepaid Tuition Plan Savings plan for future students that adjust to accommodate the rising cost of college tuition. This ensures that the savings will be adequate when he or she enters college. ^ Top Prepayment Any amount that a borrower pays on a loan before it is required as per the terms of the promissory note. There is never a prepayment penalty on Graduate School Loans's federal or private student loan consolidations. ^ Top Prime Refer to "Prime Rate" ^ Top Prime Rate The lowest interest rate on loans that is offered to preferred borrowers. ^ Top Principal The amount of money lent to a borrower, prior to interest. ^ Top Private Certified Loan A private loan that requires certification from a school official before it can be disbursed. The certification from the school verifies that the student is not borrowing in excess of the COA, minus any other financial aid received. ^ Top Private Educational Loan Refer to "Private Student Loan" ^ Top Private Loan Refer to "Private Student Loan" ^ Top Private Loan Consolidation A process that merges multiple loans into a single loan, frequently with a lower monthly payment and a longer payback period. This allows for a single, monthly bill that is made to just one lender. ^ Top Private Student Loan A student loan that is given through private institutions that are not backed by the federal government. They offer relaxed terms, competitive rates, simplified procedures, and a prompt pre-approval credit decision. Credit checks are mandatory to a borrower of private student loan. ^ Top Private Uncertified Loan A private student loan that does not require certification from a school official to be disbursed. ^ Top Promissory Note A legally binding contract between a lender and a borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid. ^ Top PSAT A preliminary test given to students to prepare for the SAT. ^ Top Rate Index A published rate such as the Prime Rate, LIBOR, or Treasury Rate that is a variable in calculating the interest rates for student loans. ^ Top Renewable Scholarships Financial aid that is awarded to students for more than a single year. ^ Top Repayment The loan status that requires borrowers to make monthly payments on the loan. ^ Top Repayment Fee A fee that is added to some loans when the loan enters into repayment status. ^ Top Repayment Length The allotted time within which a borrower has to repay his or her loan or consolidation loan. Graduate School Loans has extended repayment options that allow a borrower to extend his or her repayment length up to 30 years. ^ Top Repayment Options Allows borrowers to choose a repayment plan that best suites his or her financial situation. Graduate School Loans provides the following repayment options on our federal student loan consolidations: Equal Payments This is the standard option in which both the interest and principal will be paid equally over the life of the loan. Your monthly payment amounts will not change over the life of the loan. Select2/Graduated Payments With this option, you will be allowed to make interest-only payments for the first two years of repayment. After two years, the payments will increase to include equal installments of both the interest and principal for the remaining term of the loan. Select 5/Graduated Payments This option allows you to make interest-only payments for the first two years of repayment. During the third through fifth years of the loan, the payments will increase to include only a portion of the principal with the interest. Upon the sixth year, your payments will once again increase to include both the principal and interest equally throughout the remaining term of the loan. Income-Sensitive Payments This option provides for payments to be adjusted annually, based on your expected total monthly gross income from employment and all other sources. Extended Equal Payments This option allows up to a 25-year repayment term for loan balances between $30,000 and $40,000 of equal payments Extended Select 2/ Payments This option allows up to a 25-year repayment term for loan balances between $30,000 and $40,000 with the Select 2/Graduated Payment Plan. Extended Select 5/ Payments This option allows up to a 25-year repayment term for loan balances between $30,000 and $40,000 with the Select 5/Graduated Payment Plan. Graduate School Loans offers the following repayment options on our private student loan consolidations: Equal Payments This is the standard option in which both the interest and principal will be paid equally over the life of the loan. Your monthly payment amounts will not change over the life of the loan. Select 2/ Graduated Payments With this option, you will be allowed to make interest-only payments for the first two years of repayment. After 2 years, the payments will increase to include equal installments of both the interest and principal for the remaining term of the loan. Select 5/Graduated Payments This option allows you to make interest-only payments for the first 2 years of repayment. During the third through fifth years of the loan, the payments will increase to include only a portion of the principal with the interest. Upon the sixth year, your payments will once again increase to include both the principal and interest equally throughout the remainder of the loan. ^ Top Repayment Rate Refers to the rate at which some loans are given while in repayment status. ^ Top Repayment Schedule The schedule of a borrower which lists the monthly installment, interest rate, total repayment obligation, and the length of time for the repayment. ^ Top Repayment Terms The specified terms for repayment. This may include the monthly payment due date, and interest rate. ^ Top Research Assistantship Positions administered by colleges that provide students with monetary aid in exchange for assisting professors with research. ^ Top Residency Loan Loan that provides funds to be used for expenses related to working in a residency program. ^ Top SAR Refer to "Student Aid Report" ^ Top Satisfactory Academic Progress Required by many federal aid programs, satisfactory academic progress is demonstrated when a student maintains a specified GPA or better while in school. ^ Top SAT A standardized multiple-choice test that is given to high school students, and is required as an entrance exam to some colleges and universities. The SAT measures a student's academic aptitude in math, and verbal reasoning. ^ Top Scholarship Monetary financial aid provided to a student that does not need to be repaid. Scholarships can be awarded through colleges, organizations and companies. ^ Top School Loan A loan which includes transportation, room and board, books and additional expenses. ^ Top Secondary Market A market that provides for the purchase or sale of loans thereby providing the original lender with additional monies to make additional loans. ^ Top Secured Loan A loan that is guaranteed by the borrower by adding collateral. In case the borrower defaults on the loan, the lender may seize the collateral on the loan. ^ Top SEOG Refer to "Supplemental Educational Opportunity Grant" ^ Top Servicer An agency or company paid by the lender to oversee the status of the loan, disburse funds, receive payments, and take care of customer service and other related issues. ^ Top Simple Interest Interest that accrues only on the principal of a loan. ^ Top Stafford Loan A federally-guaranteed loan program that allows students to borrow funds from lenders. Stafford loans allow the student to defer payments while he/she is in school. These loans also have subsidized options for those who qualify. ^ Top Standard Repayment A repayment schedule where the borrower pays the same amount for each payment for the entire repayment period. ^ Top State Student Incentive Grants Funds provided as financial aid jointly by the federal government and the participating state governments for state residents. ^ Top Stipend Monetary compensation awarded to students as part of a fellowship, assistantship, scholarship, etc. ^ Top Student Aid Report A document that a student receives after his or her FAFSA is processed. The SAR lists all of the answers provided on the FAFSA. ^ Top Student Financial Aid Funds awarded to a student to help meet post-secondary educational expenses. These funds are awarded on the basis of financial need and include scholarships, grants, loans, and employment. ^ Top Student Loan A loan that is borrowed by students or parents to meet the cost of college- tuition, boarding and lodging, transportation, and other expenses associated with the cost of attendance. ^ Top Student Status Refers to whether a student is independent or dependent, as well as the student's status in regards to his or her loan: i.e. in school, in grace period, in deferment or in repayment. ^ Top Subsidized Loan A type of loan that allows the borrower to avoid accruing interest while in school, in their grace period or in deferment, due to the government paying the interest that accrues at this time. Subsidized loans are need-based. ^ Top Supplemental Educational Opportunity Grant Also known as SEOG or FSEOG, this grant is reserved for college students with the greatest need for financial aid to attend school. Colleges receive an annual allocation from the federal government for SEOG and, within certain guidelines, develop an awarding policy for this fund. ^ Top Teaching Assistantship Also known as a T.A., these are positions administered by colleges that provide students with monetary aid in exchange for assisting professors with class work. ^ Top Term of a Loan The time allotted for a loan to be repaid. ^ Top TERI The Education Resources Institute, a non-profit, private institution. ^ Top TERI-Approved Colleges or universities that have met the requirements set by The Education Resources Institute. ^ Top Title IV Programs Federal aid programs implemented from Title IV of the Higher Education Act. ^ Top True Lender A company or institution that is certified to handle loans or consolidations within their business, from start to finish. A true lender is NOT a marketing company, who merely markets to borrowers. Graduate School Loans is a true lender! ^ Top Tuition The cost of enrollment at a college or university. ^ Top Undergraduate Student A student who is pursuing a four-year Bachelor's degree. ^ Top Unmet Need The need to fund a student's schooling that is not met by scholarships, grants, loans, etc. ^ Top Unsecured Loan A loan that does entail having borrowers offer collateral to the lenders. ^ Top Unsubsidized Loan A type of loan in which the borrower accrues interest throughout the life of their loan. With unsubsidized loans, the borrower is fully responsible to pay all of the interest that accumulates. ^ Top Variable Interest Rate An interest rate that changes based on an index, such as the prime rate. ^ Top Variable Rate Refer to "Variable Interest Rate" ^ Top Variable Loan A loan that has a variable interest rate. ^ Top Verification Documents that confirm the accuracy of a borrower's information. Verification is necessary for most types of financial aid. ^ Top Weighted average Used in consolidation, the weighted average takes into account the total balance of a borrower's loans, as well as their interest rates. ^ Top Weighted GPA A student's grade point average takes into account the number of credits on the basis of which a student is enrolled. William D. Ford Direct Loan Program Also known as DOE, DL or Direct Loan Program, this program lends federal student loans through The Department of Education, instead of private institutions. ^ Top Work-Study Program A financial aid program in which students work while they attend school. Usually work-study is part of students' financial aid "package." The work may be related to students' course of study, or credited toward payment of tuition, or simply a job to help pay expenses. Work-Study is a need-based program. ^ Top

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The Career Resources column is presented by EmploymentCrossing, America's leading job search site dedicated to getting people jobs.

IRS Reminds Students of "Tax-Advantaged Education Expenses"
By Surajit Sen Sharma

On September 11th, the IRS news release "Back-to-School Tax Breaks Help Teachers Pay Classroom Costs; Aid Parents, Students With College Tuition" stressed the importance of saving receipts and maintaining expense records to take full advantage of deductions on educational expenses and credits available on federal income tax returns for 2007.

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