Our student loan glossary serves to explain various acronyms and terms relevant to loan forgiveness, types of student loans, and much more.
Your financial aid package through your school will more than likely include student loans. You’ll need to have an understanding of the types offered to you. You either have private or federal loans. Private loans are ones that are non-federal loans through a credit union, school, state agency or bank.
Consumer Financial Protection Bureau is an agency in charge of services and products offered to consumers.
A PLUS loan is one through the federal loan program for professional or graduate degree students and parents of the undergraduate student. The Direct PLUS Loans are through the U.S. Department of Education and are available to students of schools partaking in the Direct Loan Program.
DOE is a term job hunters may see. This means “Depends on experience” and is in regards to wages and how the pay is dependent on the amount and quality of experience.
This is an institution that is unaccredited and gives out academic degrees that aren’t legitimate for a fee. They’re also known as diploma mills or a degree mill. These places may state they will consider work history or may require a thesis or evaluation in order to look authentic. These schools have low admission standards and low job placement rates. Legal issues can arise when the qualification is used on a resume whether the student knew the degree was legitimate or not.
The FFEL includes four different types of loans including Stafford Loans, Federal PLUS Loans, Federal Consolidation Loans and Unsubsidized Stafford Loans. All new loans are under the Direct Loan program rather than this one.
This particular program, known as the U.S. Federal Financial Institution Regulatory Agencies Group, is comprised of the National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of the Controller of the Currency (OCC), the Board of Governors of the Federal Reserve (FRB) and Office of Thrift Supervisors (OTS). The Group began on March 10, 1979 as a result of the title X of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (FIRA), Public Law 95-630. This group formed to protect students, so they were given uniform standard and principles. This was so the FRB, FDIC, NCUA, OTS and the OCC were on the same level. Karen Kelbly is representing the group. She’s the chief accountant of the NCUA.
Federal grants are a form of economic aid provided by the government. They come from the general federal revenue.
The William D. Ford Federal Direct Loan Program, just known as the Direct Loan Program, offers loan forgiveness to those who qualify. In order to receive this, a person must have made 120 qualifying payments while he or she is a full-time employee at a public service position.
Any scholarship or grants, paid employment or loan is classified as financial aid. Basically, anything that helps a student with college expenses is considered financial aid. It can come from state agency, the federal government, foundations, high schools, colleges or corporations.
A for-profit university is in regards to any higher education institute that’s operated by a private business looking to make a profit. An educational management organization (EMO) is one type of for-profit university. An EMO includes both primary and secondary institutions, and they tend to work with charter schools or districts and use public funds.
Your FSA ID is the electronic password you use to access your federal student aid online.
Debt collectors are responsible for calling those who owe money in order to try to collect it or make arrangements to pay it. However, threatening or harassing is considered illegal debt collection.
The main law that governs the administration of federal student loan and other financial aid programs is known as the Higher Education Act (HEA). This law was established in 1965 and was turned into a law by President Lyndon B. Johnson.
Federal loans tend to cost less than private loans. The rules for paying back private loans tend to be stricter. Private loans differ in terms of deferment, forbearance, and repayment than Stafford loans. If a private loan is variable, it’s subject to change at any time during a year.
Grade inflation is when students get grades that are progressively higher for work that normally would have received a lower grade. It occurs most often in the U.S.
A GPA, also referred to as your grade point average, is a measurement of your academic achievements using a credit value system based on your grades.
The Higher Education Act’s (HEA) section 487 makes it illegal for a university to provide incentive compensation for the number of students they enroll or the amount of Title IV Higher Education Act program funds they receive.
The agency under the federal government that administrates and develops the policy for federal assistance for education is the U.S. Department of Education. The president uses this organization to execute education policies for the entire nation. It also initiates laws establishing by congress.
The Federal Reserve encourages monetary policy that mandates price stability and maximum employment. This particular committee is the ones who decide when to remove excess funds used to help during a financial crisis once the crisis is over.
The loan servicer is a company that takes care of billing and other services of a student loan. The bills sent out from the U.S. Department of Education come from various student loan servicers.
A predatory lender is one that uses abusive or unfair loan terms when a borrower takes out a loan. Predatory lenders use coercive, deceptive, unscrupulous or exploitative actions for a loan that a borrower doesn’t want, can’t afford or doesn’t need.