A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
		A
		Accrued Interest The interest that accumulates on the unpaid principal balance of a loan.
		ACT American College Testing (ACT) publishes the ACT Assessment Test, also known as the ACT. Most universities require either the ACT or the SAT as part of an application for admission.
		Alternative Loans Same as Private Loans. Education loans from private lenders that are designed to help with costs not covered by federal loans, scholarships and grants. Credit guidelines apply in determining eligibility. SunTrust offers several private loans which help fill the financial aid gap.
		B
		Borrower The person who receives the loan and is responsible for repaying the loan.
		Borrower Benefits Programs Programs that recognize certain borrowers by offering a type of financial benefit, such as lowering their loans' interest rate, discounting fees, or allowing a free payment. These benefits are typically made if the borrower follows certain standards, such as making on-time payments or using automatic deduction services.
		C
		Capitalization This occurs when interest on your loan accrues and is periodically added to the principal. Capitalization increases your balance due. Interest is charged on the new balance, including both the principal and unpaid interest. This may increase your monthly payments on a loan. Capitalization is also called compounding.
		Co-borrower The person who signs for a loan, other than the borrower, who will assume responsibility for the loan if the borrower fails to repay it. Also called co-signer.
		Cost of Education (COE): The total cost to attend a school for a specified period of enrollment. This figure is determined by the school's financial aid office, and includes tuition, room and board, books, transportation, and other related expenses.
		Credit Reporting Agency An organization that compiles credit and personal information, which is then given to creditors. The information may include history of payment, credit accounts and balances, and employment information.
		Credit-Ready An applicant who does not have an established and active credit file at one of the three major credit agencies.
		Credit-Worthy An applicant who has an established and active credit history at one of three major credit reporting agencies, and does not show signs of delinquent or derogatory credit.
		D
		Default If you make no payments for 270 days and are not in your grace period, or if you otherwise fail to meet the terms and conditions of your loan, you're legally in default on your federal loan agreement. In this case, your lender can declare the entire amount you owe -- including interest -- as immediately due and payable. Defaulting on a loan has a negative impact on your credit rating. If a federal loan is defaulted, no other federal education loans can be obtained.
		Deferment Time frame in which you postpone repayment on your loan, under certain conditions, with permission from the lender.
		Delinquency A loan is considered delinquent if the lender has not received a borrower's full payment by the day after the payment due date.
		Dependent For someone to be considered a dependent, they must be age 23 or younger, and dependent on their parents for financial support.
		Disbursement Date The date a lender issues a check for a loan or transmits the funds to the school.
		E
		EFT (Electronic Funds Transfer) The process used to wire loan proceeds directly to a school.
		Entrance Counseling A meeting or session, either with the school's financial aid office or on-line, that a student attends before receiving their first federal loan. During entrance counseling, the borrower acknowledges that he or she understands all the terms and obligations of their education loans.
		Exit Counseling A meeting or session, either with the school's financial aid office or on-line, that a student attends before graduation or withdrawal. During exit counseling, students review all the terms, obligations and repayment options of their education loans.
		Expected Family Contribution (EFC) The amount a family is expected to pay toward college costs. This amount is determined by a need analysis formula established by the federal government.
		Extended Repayment Plan A repayment option for those who first borrowed on or after October 7, 1998, and who accumulate loans after that date that total more than $30,000. These borrowers may be able to extend their Standard or Graduated repayment plan up to a total of 25 years.
		F
		FAFSA The Free Application for Federal Student Aid (FAFSA). This federal application is used to determine eligibility for most forms of education-related financial aid including federal loans.
		Federal Family Education Loan Program (FFELP) A government program that includes the Federal Stafford Loans (Subsidized and Unsubsidized), Federal Perkins Loans, the Parent Loan for Undergraduate Students (PLUS), and Federal Consolidation Loans. The funds for these loans are provided by private lenders, like banks, and are guaranteed against default by the federal government.
		Federal Government The government plays a key role in student lending through the Federal Family Education Loan Program (FFELP). These loans are made by a private lender. The federal government insures the loan, in case the borrower fails to repay and the guarantor fails to collect from the borrower. In that case, the Federal Government makes efforts to collect from the borrower by withholding income tax refunds and other measures.
		Federal PLUS (Parent Loan for Undergraduate Students) Parents may be eligible for this loan if their child is a dependent student. The parents must meet all credit criteria, and the loan must be certified by the school. There is no deferment of payments while the child is in school, nor is there any grace period. Parents can borrow up to the cost of education, minus any financial aid received.
		Federal Subsidized Stafford Loan This loan is "subsidized" because the government pays the interest while the student is in school. The government also pays the interest during any deferment, and during the six-month grace period after a student has left school or dropped below half-time enrollment.
		Federal Unsubsidized Stafford Loan Because this loan is "unsubsidized," the borrower is responsible for paying the interest from the time he or she receives the money. Interest payments can be made as they come due. Or, interest can be postponed and allowed to accumulate while the student is in school, for the six-month grace period and during any deferment. If the interest payments are not made, the interest accrues and is periodically added to the principal of the loan at repayment. This is known as capitalization.
		Financial Aid Funds provided to a student or their family to help them pay for education. This can include grants, scholarships and work-study programs.
		Financial Aid Administrator (FAA) A college or university employee who administers financial aid. Also called Financial Aid Advisors, Financial Aid Counselors or Financial Aid Officers.
		Financial Aid Office The office at a college or university that assists students, determines a student's financial need and awards financial aid.
		Financial Aid Package The combination of all grants, scholarships, loans, and work-study employment from all sources (federal, state, institutional, and private) offered to a student for education funding.
		Financial Need The difference between the cost of attending a particular school and a family's or student's ability to pay for it. The ability to pay is measured through the needs analysis process.
		Fixed Interest A rate of interest that doesn't change during the term of a loan.
		Forbearance In some cases, a borrower can have their loan restructured, for example, months can be added to the term of repayment, or the amount of the monthly payments can be temporarily reduced or suspended. Forbearance is granted at the lender's discretion.
		Forgiveness Your obligation to repay all or part of a federal student loan can be canceled under certain conditions. These conditions can include total and permanent disability, death, or some military or government service.
		G
		Grace Period A specified period of time after the borrower graduates or leaves school during which he or she isn't required to make principal payments.
		Graduated Repayment Plan This type of plan begins with smaller payments, followed by a gradual increase in payments at specified intervals. Your interest rate and the repayment period remain the same, but you will probably pay more interest over the term of the loan.
		Grant A type of financial aid based on financial need that the student does not have to repay.
		Guaranty Agency The agency that makes sure borrowers are eligible for a particular federal loan program, and provides the insurance for those loans. If a borrower defaults on a loan, the guaranty agency pays the lender the amount owed and collects the balance directly from the borrower.
		Guarantee Fee An insurance premium deducted from the borrower's loan proceeds and paid to the guaranty agency to insure the loan.
		Guaranteed Student Loan (GSL) Now called the Stafford Loan. Federal loans that come in two forms, Subsidized and Unsubsidized. Subsidized loans are based on need, while Unsubsidized loans aren't. The interest on a Subsidized Stafford Loan is paid by the federal government while the student is in school.
		H
		Half-Time Most financial aid programs require that the student be enrolled at least half-time to be eligible for aid, and some require the student to be enrolled full-time. Typically, a student must be taking at least half of the course load of a full-time student to be considered half-time. Check with your school for their specific requirements.
		Holder An institution with legal title to a borrower's loan. The holder may be the original lender, a secondary market to which the loan has been sold, or, in the case of default, the guaranty agency.
		Home Equity Loan Loan secured by the equity in a borrower's home. In some cases, the interest on these loans may be tax-deductible. (Please consult a tax advisor concerning tax deductibility.)
		I
		Income-Sensitive Repayment Plan A type of loan repayment plan that ties the size of your monthly payment to your income level, with adjustments to your payment made annually. The payment must be large enough to cover interest charges. This plan also may increase the amount of interest you pay over the term of your loan.
		Independent To be considered independent, a student must meet one of the following criteria: age at least 24 years old as of January 1 of the academic year; married; a graduate or professional student; have a legal dependent other than a spouse; be a veteran of the US Armed Forces; or be an orphan or ward of the court (or was a ward of the court until age 18). A parent's refusal to support their child's education is not sufficient for the child to be declared independent.
		In-School Status The period during which a borrower is in school at least half-time.
		Interest A fee, usually a percentage of the loan amount, that is charged in exchange for lending the money. If the interest rate (the percentage) stays the same for the term of the loan, it's called a fixed rate. If it changes periodically, for example, each year, it's called a variable rate.
		Interest-Only Payment A payment that covers the interest owed on a loan, but not the principal owed.
		J
		No Definitions
		K
		No Definitions
		L
		Lender An organization (usually a bank, savings and loan, or credit union) that provides the funds for student loans.
		Lender Code A six-digit federal code used to identify the borrower's education loan lender.
		LIBOR LIBOR stands for the London InterBank Offered Rate and is a rate of interest at which banks borrow funds from each other in the London interbank market. This index rate is released to the market shortly after 11:00 a.m. each day London time.
		Loan Money that is borrowed for a specific reason (funding an education, buying a car or home, etc.), and that is repaid with interest.
		Loan Period An academic term or school year for which a loan is designated.
		M
		Master Promissory Note (MPN) The revised promissory note which the Department of Education has authorized to be used with Stafford loans. The MPN lets lenders use a single document instead of requiring borrowers to sign a new application/promissory note for additional advances. The MPN serves as a contract between a borrower and a lender, and it includes terms and conditions for repayment.
		Merit-Based Financial Aid Aid that considers academic, artistic, athletic or some other type of merit, as opposed to financial need.
		N
		Need The difference between the cost of attendance (COA) of a school and the expected family contribution (EFC). Need is determined by your school.
		Need-Based Financial Aid Aid that depends on your financial situation. Many government sources of financial aid are need-based.
		Needs Analysis The process used to determine the amount of a student's financial need, based on detailed family financial information. A needs analysis form is required before applying for most types of financial aid. The most common federal application used to determine eligibility for financial aid is the FAFSA.
		O
		Origination Fee The fee you pay to a lender to initiate your loan. With federal loans, a portion of this fee is paid to the government to offset administrative costs.
		P
		Packaging The process of putting a financial aid package together. Packaging is done by the financial aid office of the school you're attending. See Financial Aid Package.
		Parent Loans for Undergraduate Students (PLUS) Federal loans available to parents of dependent undergraduate students to help finance their child's education. Parents can borrow up to the full cost of education, minus financial aid received. Applicants must meet established credit criteria.
		Pell Grants One of the largest sources of grants, Pell Grants are distributed by the federal government to help students with financial need.
		PLUS Pre-Approval A service offered by SunTrust to parents who wish to take out a Parent Loan for Undergraduate Students. If parents are unsure about their credit history, they can undergo pre-approval to see if they meet credit criteria.
		Podcasts Audio and/or video files made available on the Internet for download. Users can choose to download these files using a personal computer or portable media player.
		Preliminary Scholastic Assessment Test (PSAT/NMSQT) A test taken during the high school sophomore or junior year as practice for the SAT. PSAT scores are used to select semi-finalists for the National Merit Scholarship program.
		Prepaid Tuition Plan A college savings plan that is guaranteed to rise in value at the same rate as college tuition.
		Prime Rate The rate of interest charged by banks to their best or most credit-worthy customers. The prime rate is used to calculate the interest rate on many private loans.
		Principal The original amount borrowed. Interest is charged on the outstanding principal balance.
		Private Loans Education loans from private lenders that are designed to help with costs not covered by federal loans, scholarships and grants. Also called Alternative Loans. Credit guidelines apply in determining eligibility. SunTrust offers several private loans which help fill the financial aid gap.
		Promissory Note A legal contract between a borrower and a lender that includes the terms and conditions for repayment.
		Q
		No Definitions
		R
		Repayment Period The period of time during which you repay the money borrowed and interest. SunTrust offers several types of repayment options for federal loans. These options include standard, graduated, income-sensitive and extended repayment.
		Repayment Schedule A document that discloses the monthly payment, interest rate, total repayment obligation, payment due dates, and term of the loan.
		S
		Satisfactory Academic Progress (SAP) The standard of academic performance required by the Higher Education Act in order to receive Stafford, PLUS or SLS loans. These standards are determined by a student's school.
		Scholarship A form of financial aid given to students to help pay for their education. (Scholarships are given for a student's outstanding achievement - academic, athletic, or creative.) Scholarships don't have to be repaid.
		Scholastic Assessment Test (SAT) The SAT (previously known as the Scholastic Aptitude Test) is administered by the Educational Testing Service (ETS). Most universities require either the ACT or the SAT as part of an application for admission.
		Secondary Market A company or organization that buys loans from lenders. If your loan is bought, it does not affect the original terms and conditions of your loan, but payment addresses and other details may change.
		Servicer A company contracted by a lender or holder to handle administrative aspects of the loan -- collection of payments, correspondence with borrowers, address changes, loan status updates and more. Quite often, all communication regarding a loan will be with the servicer.
		Simple Interest Interest that accrues daily based on the outstanding balance of the loan. When a payment is made toward the loan, the interest is applied before the principal.
		Stafford Loans Federal loans that come in two forms, Subsidized and Unsubsidized. Subsidized loans are based on need, while Unsubsidized loans aren't. The interest on a Subsidized Stafford Loan is paid by the federal government while the student is in school.
		Standard Repayment Plan Under this type of repayment plan, your monthly payment remains the same over the entire repayment period.
		Student Aid Report (SAR) A report that summarizes information included in the FAFSA. This form must be provided to your school's Financial Aid Office. The SAR will also indicate the amount of Pell Grant eligibility, if any, and the Expected Family Contribution (EFC).
		Subsidized Stafford Loan A loan on which interest is paid by the federal government while the student is in school at least half-time, or during grace and deferment periods. These loans are based on financial need.
		T
		Term The number of years (or months) in which the loan is to be repaid.
		Title IV Loans Title IV of the Higher Education Act of 1965 created several education loan programs that are now considered the Federal Family Education Loan Program (FFELP). These loans, also called Title IV Loans, include the Federal Stafford Loans (Subsidized and Unsubsidized), Federal Perkins Loans, the Parent Loan for Undergraduate Students (PLUS), and Federal Consolidation Loans.
		Treasury Bill A financial note issued by the federal government to finance government spending. Treasury bills are used to calculate the interest rates on Stafford and PLUS loans.
		U
		Unmet Need Due to budget constraints, loan limitations or other financial issues, a school's financial aid office may provide the student with less than he or she needs (as determined by the FAO). This gap is known as the unmet need.
		Unsubsidized Stafford Loan A loan on which interest is not paid by the federal government. Unsubsidized loans are not based on financial need and may be used to finance the expected family contribution (EFC).
		US Department of Education (ED or USDE) The government agency that administers several federal student financial aid programs, including the Federal Pell Grant, the Federal Work-Study Program, the Federal Perkins Loan, the Federal Stafford Loans, the Federal PLUS Loan, and the Federal Consolidation Loan.
		V
		Variable Interest An interest rate tied to a financial index that changes periodically (e.g. quarterly, annually etc.)
		W
		Work-Study This part of the federal Student Financial Assistance provides part-time employment for students who need income to help meet education costs.
		X
		No Definitions
		Y
		No Definitions
		Z
		No Definitions