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- 401(k) Plan
- A tax-deferred retirement savings plan offered through one's employer. College expenses are one of several kinds of financial hardship that may enable a person to withdraw money from a 401(k) plan before retirement. A 401(k) plan is a costly source to use, since income taxes will be owed and penalties (for withdrawals before age 59 ½) may apply. Loans from a 401(k) are another alternative. Loans from a 401(k) need to be paid back within five years, and if the employee leaves the company, the loan must be paid back immediately.
- 529 Plans
- Created under Section 529 of the Internal Revenue Code, 529 Plans are tax-advantaged education savings vehicles sponsored by individual states. 529 Plans come in two forms: prepaid tuition programs and college savings programs.
529 college savings programs are offered by nearly every state. Both residents and non-residents may invest in a state�s plan. Sometimes state residents have additional tax advantages in their own plan. The state typically hires an investment firm as its program manager. Money invested in a 529 Plan grows tax-free and under current tax law may be withdrawn federally tax-free to meet college expenses. (The law enabling tax-free withdrawals is scheduled to expire at the end of 2010 unless extended by Congress.)
Many states also offer 529 prepaid tuition plans. These plans are typically restricted to the publicly-funded colleges in the state that sponsors them. Unlike college savings plans, prepaid tuition plans enable the participant to know how much of his future cost is covered by the contributions he has made to the plan.
A final plan to know about is the Independent 529 Plan. This is a prepaid tuition plan sponsored by a nation-wide group of over 250 private colleges.
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- ACT Assessment
- One of two widely used standardized tests by which colleges evaluate prospective students. This test, administered by ACT, Inc., is designed to measure high school students' general educational development and their ability to do college-level work. Pronounced "AY-SEE-TEE."
- Adjusted available income
- The subtotal of a family's household resources on which the student's need for financial aid is based. Adjusted available income includes a share of the family's assets (savings and investments) as well as its income.
- AP Advanced Placement�
- A program that provides college level courses to high school students, who receive college credit for their work if they score well on a standardized AP exam. Many colleges look favorably on applicants who have taken AP courses.
- Assets
- Things of value, such as savings, investments, retirement accounts, real estate, automobiles, and jewelry, are all examples of assets. For financial aid purposes, financial assets, businesses, and real estate are counted most heavily.
- Asset protection allowance
- That part of parents' savings and investments that is not counted when the ability to pay for college is assessed for financial aid. The allowance increases each year with the age of the older parent.
- Athletic scholarship
- A scholarship awarded to students who will play on a competitive sports team at college. Eligibility for athletic scholarships and recruitment of student athletes is closely monitored by the National Collegiate Athletic Association (NCAA).
- Award letter
- Official notice of the amount and kind of financial aid the student has received from a college.
- Award year
- The year for which the student is awarded financial aid. Award year is contrasted with base year, which is usually the tax year preceding the award year. The amount of the award is based on financial information from the base year.
- Base year
- The calendar year before the academic year for which financial aid is requested; the year upon which the Expected Family Contribution is based. Financial facts from the family's base year are combined with the Cost of Attendance for the "award year" to determine the student's Need. In effect, there is a one-year offset between the family's income and savings and the student's financial aid.
Financial aid officers may take into account the family's financial expectations for the award year, but they are not required to do so.
- Bonds
- Investments that are debt instruments issued by governments or corporations. The owner of the bond has loaned money to the issuer and receives regular interest payments until the bond matures or comes due. Many investors own bonds via mutual funds.
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- Campus-based aid
- Three financial aid programs that are publicly funded but administered by individual colleges: the Federal Supplemental Educational Opportunity Grant Program, the Federal Work-Study Program, and the Federal Perkins Loan Program. Participating schools receive an allotment of funds for each program and decide, within federal eligibility guidelines, how to divide the funds among qualifying students.
- Capital gain
- Financial gain that results when an owner sells an asset for a higher price than he paid for it. Under current law, long-term capital gains are typically taxed at a lower rate than earned income or other investment income. Capital gains may also be passed through to shareholders by mutual funds. Using a tax-advantaged savings vehicle like a 529 Plan or Coverdell account can mean that capital gain taxes will not be owed at all on money invested for college.
- Cash equivalents
- Interest-paying accounts and investments that feature very low risk and easy conversion into cash (liquidity). Savings accounts, money market funds, and certificates of deposit are all cash equivalents.
- Common Application
- A college application form that over 250 colleges have agreed to accept instead of their own application form. The Common App is available on-line or on paper. Students like the form because in one sitting they can apply to several colleges.
- Community college
- A two-year college offering both vocational and academic programs, many leading to an Associate of Arts or Associate of Science degree. Many community colleges facilitate transferring to a four-year school. Community colleges are state, county or city-funded.
- Commuter
- A student who lives at home or with other students off campus rather than in campus housing. Going to school locally and living at home is one way to save money on college costs.
- Compound interest
- Interest paid on the prior periods' interest as well as on the original deposit. In contrast, simple interest is paid only on the initial deposit.
- Comprehensive university
- A post-secondary school that offers liberal arts, science, technology and professional programs of study to graduate students and undergraduates alike.
- Consolidation (of college loans)
- Combining education loans taken out at different times into a single loan when education is complete. Consolidation may be more or less expensive than continuing to repay the original loans. Some people find it simpler to repay one loan than to keep track of multiple payment schedules.
- Cost of attendance
- The stated cost of full-time study at a specific college for one academic year, made up of tuition and fees, room and board, and estimates for books and supplies, personal expenses, and transportation. Tuition and fees, as well as room and board, are fixed costs billed to the student or parents at the beginning of each semester. All other costs of attendance are pay-as-you-go.
- Coverdell Education Savings Account
- A donor can put up to $2,000 in a Coverdell Education Savings Account per year, per beneficiary. The maximum contribution amount is gradually reduced as certain income thresholds are reached.
Taxpayers with adjusted gross incomes from $190,000 to $220,000 (joint returns) or $95,000 to $110,000 (other returns) cannot fully fund a Coverdell account. At and over the upper income range, they cannot use this vehicle at all.
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- CPI Consumer Price Index
- A widely-used measure of the rate of increase of the cost of a market-basket of ordinary goods and services. Inflation measured by the CPI is often contrasted with Education Inflation, which has been substantially higher over recent years.
- CSS/Financial Aid PROFILE�
- Application form many institutions use to determine need for private, non-federal financial aid. The student's PROFILE includes all, and only, the questions that the student's chosen schools require. The PROFILE is a fee-based service.
Some schools require their own financial aid application form instead of the PROFILE, and some require only the FAFSA (Free Application for Federal Student Aid).
- Custodial account
- A savings or investment account owned by the student but controlled by an adult trustee (custodian) until the student reaches legal age, 18 in most states. Funds in a custodial account must be used for the benefit of the student.
- Custodial parent
- Of divorced parents, in the context of financial aid, the parent with whom the student has lived the most during the base year. If the student lived equally with both parents, the custodial parent is the one who provided more of the student's support. If either divorced parent has remarried, both the parent and the step-parent's income must be considered in assessing need for financial aid.
- Debt-to-income ratio
- Ratio of a family's monthly debt payments to monthly income, used as a measure of how much the family can afford to borrow. Typically, lenders want borrowers to have a ratio of 35% or less; that is, no more than 35% of the borrowers' monthly income goes to pay off loans. Lenders may consider rent as if it were "debt" for this purpose.
- Default (on college loans)
- Failure to make scheduled payments on federal student loans. It is better to work with lenders to develop a feasible repayment schedule or an authorized suspension of payments than to default on these loans.
- Deferral (of college loans)
- A period of time when the student is not required to make payments on his or her student loan. Most student loans provide for deferral while the student is attending school and for a fixed period after graduation and leaving school. Repayment must begin when the deferral period is over.
- Dependent student
- A student whose financial need is determined in reference to both the student's and the parents' financial resources. A student is deemed dependent if he or she is unmarried, has no children, is not a veteran of the armed services, is under age 24, and is an undergraduate.
- Direct charges
- Charges billed to the parents by the institution the student attends. Tuition, fees, and room and board charges for residential students are direct charges, while the student's books, supplies, transportation and personal expenses are paid out of pocket or billed as incurred.
- Discount (Cost of college)
- One way of thinking about the relationship of financial aid to the published cost of college. Some people think of their financial aid award as a discount, and others argue that the "published price" of college is an artificial concept.
- Donor
- The person who puts money into a Coverdell Education Savings Account or 529 Plan for a prospective student, who is the beneficiary.
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- Early Action
- A system that offers students who complete their applications before an early deadline earlier action on their applications. Unlike Early Decision, Early Action is not an exclusive arrangement - a student can apply to many schools.
- Early Admission
- A program that allows highly qualified high school juniors to skip the senior year, enrolling instead in college. The term is also frequently used to refer collectively to Early Action and Early Decision programs.
- Early Decision
- A system whereby a student applies to one school, with the understanding that if admitted, she will attend that school. In exchange, the school makes an admissions decision by December 1, rather than in the spring. Once an option used only by a few, applying for Early Decision has become more common.
- Education Savings Account
- A short name for the Coverdell Education Savings Account.
- Education inflation
- The rate at which the cost of college has increased over recent history. While the cost of living in general has increased 28% over the past 10 years, the cost of a private 4-year college education has increased 74%. The cost of a public college has increased even more.
- EFC Expected Family Contribution
- The student's EFC is the amount he and his family are expected to pay for college in a specific year. Federal financial aid may be offered to cover costs that exceed his EFC (his need). The student's EFC is calculated from information submitted annually on the FAFSA (Free Application for Federal Student Aid).
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- FAFSA
- The Free Application for Federal Student Aid, which families submit annually in order to determine the student's Expected Family Contribution to education costs. The FAFSA can be filled out on-line or in paper. As the name implies, it costs nothing to file the FAFSA and have the results sent to colleges where the student seeks financial aid.
- Family of funds
- A group of mutual funds from the same fund company, each representing a different asset type or investment style. A family of funds enables the investor to make investment changes without changing mutual fund companies.
- FDSLP Federal Direct Student Loan Program
- One kind of federally-authorized education loan. Instead of borrowing from a financial institution, the student borrows directly from the government. All loans available through this program are also available as Federal Family Education Loans, but repayment options differ. Students whose schools participate in the Direct Loan program can borrow through this program.
- Federal Methodology
- The formula authorized by the Higher Education Act for determining a student's Expected Family Contribution. All federal financial aid is based on this needs analysis.
- Fees (on the college bill)
- Fixed costs aside from room, board and tuition that a college puts on a student's bill. Typical fees might be a health center fee, telecommunications fee, or activity fee. Some fees vary with the program of study, but most are charged across the board to all students.
- FFELP Federal Family Education Loan Program
- A group of federally-authorized education loan programs for which the lender is a bank, credit union, or other commercial funding lender. These include government-subsidized loans for students and unsubsidized loans for both students and parents. Applying for the student loans begins with completion of the FAFSA.
- Financial aid administrator
- The college official who administers financial aid funds.
- Financial aid office
- The college staff who are responsible for administering financial aid programs.
- Financial aid package
- The offer of financial aid a student receives from a college. It is called a package because it often contains scholarships plus two forms of self-help aid - subsidized employment through the Federal Work-Study program and loans.
- Financial need
- The amount that remains when a family's Expected Family Contribution is subtracted from the Cost of Attendance at a college.
- Fixed charges
- Same as direct charges; the part of the Cost of Attendance that is determined by the college on a yearly basis and billed to the family. Students also have indirect expenses that cannot be billed in advance - books, supplies, personal necessities, and transportation.
- Forbearance
- Legal permission to suspend payments on a federal student loan. Forbearance may be granted in the case of financial hardship.
- Free Application for Federal Student Aid
- See FAFSA.
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- Gift aid
- Another name for a scholarship; financial aid that does not have to be worked for or repaid.
- Grace period
- The period during which the student, no longer in school full time, is not yet required to make payments on a federal student loan. The grace period is usually six months and begins when the student graduates, leaves school, or drops below half-time status.
- Grant
- Another name for a scholarship, a form of financial aid that does not have to be repaid. Colleges, businesses, non-profit organizations, and communities all may have grant programs.
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- Hope Scholarship Credit
- A tax credit of up to $1,650 available on a per-student basis for expenditures on tuition, fees, and other qualified expenses incurred during the first two years of college or postsecondary education. The credit is available to married taxpayers with modified adjusted gross incomes (MAGI) under $110,000 and single taxpayers with MAGI under $55,000. Income phase outs begin at lower MAGI levels and other qualifying conditions may apply.
- Independent student
- A student whose eligibility for federal financial aid does not depend on his or her parents' resources. Students who are married, have children, are veterans of the armed services, are graduate students, or are over age 23 are independent students.
- In-state tuition
- The lower tuition that public colleges (supported by state tax money) charge to state residents. Students from out of state pay more. Rules vary from state to state as to how an out-of-state student becomes a legal resident to qualify for the lower tuition.
- Institutional aid
- Financial aid funds from the college's own budget, in contrast to funds that come from federal and state financial aid programs. Colleges have complete control over their use of institutional aid, while federal and state aid are governed by law.
- Institutional Methodology
- An additional formula for determining the family's ability to pay for college. Colleges use the results of the Federal Methodology to award federal financial aid but may use the Institutional Methodology to determine how to award institutional aid. The Institutional Methodology usually produces a higher Expected Family Contribution than does the Federal Methodology.
- Interest
- What banks and bond issuers pay a depositor for the use of his money. Generally, the safer the deposit or investment, the lower the interest. A savings account may pay 1 or 2% interest, while a high-risk corporate bond (a junk bond) may pay 8 or 9% or more. Most bank deposits pay interest daily or monthly, while bonds pay interest twice a year.
- IRA Individual Retirement Account
- A personal savings plan for retirement. Earnings grow in the account without any tax liability until the owner withdraws them. Under some circumstances, contributions to the account are tax-deductible. Money can be withdrawn without penalty to meet qualified education expenses. A Roth IRA has different rules that may make it a better choice if savings are intended for education or retirement.
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- Kiddie tax
- The provision in federal income tax law that states that investment income over a certain dollar amount belonging to a child under age 18 will be taxed at the parent's tax rate. For convenience, the Kiddie Tax income can be reported on the parents' return. For tax year 2006, the Kiddie Tax began at $1,700 of investment income.
- Liberal arts college
- A college with programs largely in the humanities, social sciences and pure science; in contrast to schools that focus on applied science, engineering or career-oriented disciplines such as business. In addition, a liberal arts college is largely devoted to educating undergraduates rather than conducting graduate level research.
- Lifetime Learning Credit
- A tax credit available to families with modified adjusted gross incomes (MAGI) under $110,000 (married filing jointly) or $55,000 (single tax payers). The maximum tax credit equals 20% of the first $10,000 of qualifying expenses. It is available for all years of postsecondary education and can be used for courses that improved job skill as well as for degree programs.
- Loan default
- See Default.
- Loan discount
- A slight interest rate reduction offered on some student loans as a reward for making an agreed-upon number of payments on time. Loan discounts can save the borrower a modest amount over the lifetime of a loan.
- Loan repayment schedule
- The pattern of repayments required on a loan. Monthly payments are standard.
- Loan repayment term
- The length of time the borrower may take to repay a loan. Generally, longer repayment terms mean lower payments but higher total costs; shorter terms lower the total interest charged, though the monthly payments are higher.
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- Merit-based aid
- Financial aid offered in recognition of a student's talents, achievements, or academic promise. A student may get merit-based aid even in the absence of financial need.
- Mutual funds
- A form of investment managed by a company that pools money from numerous shareholders and buys stocks, bonds and other types of securities. Each investor owns shares in the fund representing a percentage of all the assets the fund holds. Most funds are "open-ended," meaning they stand ready to buy back their shares on demand.
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- Need-based aid
- In contrast to merit-based aid, financial aid that is awarded to meet need as defined by the Federal or Institutional Methodologies. To receive need-based aid, a family files one or more annual disclosures of their financial condition, such as the FAFSA (Free Application for Student Aid).
- Needs analysis
- The process of determining a student's need for financial aid for college. Both the Federal Methodology and the Institutional Methodology are forms of needs analysis.
- Non-fixed costs
- Another name for indirect costs, those costs of college that are dependent on the student's decisions to buy rather than predetermined and billed by the institution. Books, supplies, personal expenses, and transportation are typical non-fixed costs.
- Open admissions
- Admission to a college or university that is not competitively based on academic achievement. Any high school graduate or GED-holder who wants to enroll can do so. Many community colleges have open admissions.
- Out-of-state tuition
- Tuition charged at a public college or university to students whose legal residence is not that state; it is higher than in-state tuition.
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- Parent loan
- An education loan made to parents. There is one federal parent loan program (PLUS) and a multitude of private ones. Private financial institutions and state education financing agencies compete for parent education loan business, which keeps rates and terms attractive.
- Pell grants
- A federally-funded grant program for low-income undergraduates. Pell grants range from $400 to a maximum of $5,000 (for 2006-2007), often enough to cover in-state tuition at a public institution. Schools receive enough Pell grant funds to award grants to all eligible students.
- Perkins loan
- A federally-funded campus-based loan program for undergraduate students with exceptional need. The interest rate is a low 5%, and the school determines whether a student will receive a Perkins loan.
- PLUS Parent Loan for Undergraduate Students
- A loan program, open to parents with good credit histories, for the purpose of paying the undergraduate education expenses of a dependent student. Parents can borrow up to the cost of attendance, on a year by year basis, minus any other financial aid the student receives. The interest rate on a PLUS loan disbursed after June 30, 2006 is fixed at 8.5%. PLUS loans first disbursed before July 1, 2006 are variable, adjusted annually, and capped by law at 9%.
- Prepaid tuition plan
- A state-specific college savings plan guaranteeing the deposited funds will grow at the rate of increase in college costs at public institutions in that state. Exact terms vary from state to state. Many of the prepaid tuition plans are 529 plans. There are no federal income taxes on the increase in value of a prepaid 529 plan. Often the plans are exempt from state income taxes.
One advantage of the prepaid plans is that at the time or purchase, the buyer knows how much of the future education cost will be covered by his purchase. One disadvantage is that if the student does not attend a participating college, the buyer may forfeit some of the guaranteed return, although the buyer always gets back the money invested.
- Private college
- In contrast to a public college, an institution whose primary funding (beyond student payments) comes from the charitable gifts of alumnae and friends, rather than from tax revenues.
- Private loan
- An education loan program that is not sponsored or guaranteed by the federal or state government.
- PSAT or Preliminary SAT
- A standardized test of academic achievement that college-bound students typically take in the second or third year of high school. High scores on the PSAT prequalify students for the National Merit Scholarship and other academic award programs.
- Public college
- In contrast to a private college, an institution whose primary funding (beyond student payments) comes from the state or local tax revenues, rather than from the charitable gifts of alumnae and friends of the institution.
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- Reauthorization
- The process by which Congress periodically revises the Higher Education Act, including the rules governing federal financial aid.
- Residential college
- A college where most students live on campus, in contrast to a college where most students live at home or elsewhere in the community.
- Room and board
- College charge for housing and food services.
- ROTC Reserve Officers' Training Corps
- Military training program coordinated with undergraduate education. Individual ROTC commands (units) serve one or more campuses. ROTC graduates are eligible to enter the armed services as officers and graduates who have accepted ROTC scholarship funds may be obligated to do so.
- Roth IRA
- A kind of Individual Retirement Account. The contributor saves no taxes on the contributions she makes to a Roth IRA, but qualifying withdrawals are federal tax-free. Roth IRAs may be more convenient if the investor is not sure whether she will need the money for education or for retirement and if the account owner will be age 59 ½ or older when the funds are needed.
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- SAT Reasoning Test
- A standardized test of critical thinking skills and readiness for college level work that is required by many colleges as part of the admissions process. Colleges use the scores to compare prospective students with each other and also with students who have attended the school. The SAT Reasoning Test has three parts: Writing, Critical Reading, and Mathematics.
- SAT Subject Tests
- A set of standardized tests (formerly called SAT II: Subject Tests) in specific subjects that are required or strongly recommended by many colleges as part of the admissions process. The tests are one-hour multiple choice tests, and typically a student will take three. Some colleges specify the Subject Tests they require for admission or placement and others allow participants to choose which tests to take.
- Savings account
- A deposit account at a bank or credit union. Considered the safest form of savings and investment, savings accounts also pay low interest in comparison to other cash equivalent investments.
- Savings bonds
- Series E bonds, a kind of U.S. government bond issued in low denominations for easy purchase. An investor buys savings bonds at a 50% discount, conveniently through a local savings bank or from the U.S. Treasury on the Internet. At maturity the bond is worth its face value, and taxes are due on the increase in value.
There are tax advantages to buying savings bonds for future education costs, but the regulations are complex. Get more information before committing to this strategy.
- Scholarship
- A grant; that is, a form of financial aid that does not have to be repaid.
- Selective Service
- The obligation to register with the government so that one's availability for military service is recorded with the Selective Service System. Young men who are U.S. citizens must register for Selective Service when they turn 18. Federal financial aid is not available to students who have not registered.
- Selectivity
- Viewed by some as a measure of college quality, selectivity is based on the number of applicants accepted out of the number that apply. Selectivity ratings are developed by college rating services from statistics the colleges supply. Selectivity ratings should be considered in the context of yield - the number of admitted students who choose to enroll.
- Self-help aid
- Financial aid that requires a student's commitment to earn the aid (Federal Work-Study Program) or repay a loan (Federal Perkins Loan Program and other student loans). Self-help aid stands in contrast to gift aid, which the student does not have to earn or repay.
- SEOG Supplemental Education Opportunity Grant
- A campus-based federal grant program for students with the most financial need. Colleges administer SEOG funds and give priority to students who also received Pell grants. Unlike Pell grants, however, there is no guarantee the college will receive as much SEOG money as it could award to qualified students.
- Simplified needs test
- In the context of financial aid, a shorter form of Needs Analysis that is applied if both the student and the parents (1) have Adjusted Gross Income of less than $50,000 and (2) qualify to file IRS Form 1040-A or 1040-EZ or do not need to file.
- Stafford Loan
- The Federal government's major form of self-help aid for undergraduate students. First-year students can borrow $2,625, second year students $3,500, and students completing college, $5,500 a year.
A student with financial need may be offered a Subsidized Stafford loan, on which the government pays interest until the student finishes school. Other students may be authorized for an Unsubsidized Stafford loan, on which the student is responsible for interest from the beginning of the loan period.
- Tests of achievement
- Tests of achievement or aptitude designed by a central authority that users of test results recognize as legitimate. For college admissions, the ACT Assessment and the College Board's SAT and AP tests are the most widely recognized.
- Stocks
- A form of investment that represents an ownership interest in a company. Investors profit either through dividends or through capital gain, when they sell their stocks at a higher price than they paid for them. Many investors own stocks through mutual funds.
- Student Aid Report (SAR)
- Notification form that results from submitting the FAFSA to establish a student's need for federal financial aid. The SAR reproduces the information submitted on the FAFSA, tells the student what her EFC is, and describes actions the student may take. The SAR is also sent to the schools the student identified on the FAFSA.
- Student contribution
- In the Federal Methodology calculation, the share of the EFC that is based on the student's financial information, in contrast to the share that is based on parent financial information.
- Student loan
- A loan to pay for higher education. Student loans usually have lower interest rates and better repayment terms than conventional unsecured loans. The Federal government is a major provider of student loans, but states and private lenders are also sources.
Unlike parent loans for education, student loans usually provide that repayment does not begin until the student has been out of school for six months. The loan must be repaid whether or not the student completes his education.
- Subsidized loan
- A student loan on which the Federal government pays the interest while the student is in school. It's important to know whether the student's loan is subsidized or unsubsidized. If the loan is not subsidized, the interest accrued while the student is in school is added to the amount borrowed, unless the interest is paid while the student is still in school.
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- Tax-deferred state savings plan
- See 529 Plan.
- Tuition
- Payment for instruction, in contrast to other fixed costs of college such as fees and room & board. People often use the word to refer to the whole fixed portion of the cost of college.
- Tuition payment plan
- A plan that permits parents to pay the fixed costs of a year of college in equal monthly installments. An enrollment fee is typically charged.
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- UGMA Uniform Gift to Minors Account
- An older name for the kind of custodial account now called a UTMA or Uniform Trust for Minors Account
- Undergraduate
- A student who is working toward the first-level post-secondary degree, usually the BA (Bachelor of Arts) or BS (Bachelor of Science) degrees.
- Unmet need
- In the financial aid process, the difference between the family's need and the financial aid they receive.
- Unsubsidized loan
- A student loan on which the borrower is responsible for interest from the time the loan is made. The interest accrues while the student is in school and is added to the amount borrowed.
- UTMA Uniform Trust for Minors Account
- A custodial account established for a child and managed by her parent, grandparent or other custodian. Earnings on investments titled as UGMA or UTMA accounts are taxed at the parents' rate, until the child is 18, and then at the child's tax rate.
Until the child reaches the age of majority (age 18 in most states), the custodian controls the account and can only spend the money for the benefit of the child. At the age of 18, the child owns the account.
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- Wait list
- Rather than deny the student admission from the start, a college may put him or her on a wait list. If the college does not fill all spaces from its first round of acceptances, it will offer admission to some of the students on the wait list.
- Work Study Program
- A federal financial aid program that funds paid employment on campus and in local non-profit institutions. The government provides most of the funding for Work Study wages, while the college organizes and disseminates information about qualifying positions. The student must apply for and work in a Work-Study job in order to receive the aid.
- Yield (on an investment)
- One of the two parts of the total return an investor receives, the yield refers to the dividends or interest the investor earns in the time period in question. Capital gain is the other component of total return.
- Yield (college admissions)
- The number of students who enroll in a college, in relation to the number to whom the college offers admission.
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Copyright ©2006 Archimedes Systems, Inc.
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