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Financial Literacy - College funding
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A glossary of terms, calculators, work sheets and links to other useful sites to help you through the financing jungle.
Smart ways to pay for college

Glossary of college financing terms

29. Recurring debt -- Debt that occurs periodically, including such obligations as credit card payments, child support, car loans and others that will not be paid off within a relatively short period of time (six to 10 months).

30. Sallie Mae -- SLM Corporation, commonly known as Sallie Mae, is the nation's largest originator of federally insured student loans. Sallie Mae was originally created in 1972 as a government-sponsored entity (GSE) but terminated all ties to the federal government in 2004.

31. Scholarship -- A form of financial aid that does not need to be repaid, but often comes with certain conditions, such as maintaining a high grade point average or participating in sports, music or other activities.

32. Stafford loans -- Available to all families regardless of financial need, these loans come in two flavors: subsidized Staffords for students with financial need and unsubsidized Staffords for those without need. The government pays the interest during school and any other deferments on subsidized loans; on unsubsidized loans, interest accrues during school and other deferments.

33. Student aid report (SAR) -- Summarizes the information provided on the FAFSA and indicates the expected family contribution (EFC).

34. Student loan -- A student loan is financial aid that students must repay. When backed by a federal government guarantee, student loans carry lower interest rates than are typically available to consumers. Common federal loans include Stafford loans, Parent Loans for Undergraduate Students (PLUS) loans and Perkins loans.

35. Supplemental Educational Opportunity Grant (SEOG) -- Paid for by a combination of government and college funds, these awards are up to $4,000 per undergraduate year. Pell grant recipients receive highest priority for the grants.

36. Tuition reimbursement plan -- Offered as a perk by some employers to pay certain fees and expenses for employees to take college courses on their own time.

37. Uniform Gift to Minors Act (UGMA) -- A 1956 act to make gifts of money and securities to minors. The property held is considered an asset of the minor. The custodian of the account has control over the assets until the child reaches 18 or 21, depending on state law.

38. Uniform Transfer to Minors Act (UTMA) -- An extension of the Uniform Gifts to Minors Act set up by the states which allows tax-free transfers of up to $12,000 to be made to a minor without setting up a trust. An adult is appointed to manage the assets and make payments on behalf of the minors until they reach an appointed age between 18 and 25, depending on the state, at which time they gain control of the assets.

View glossary archive
-- Posted: Sept. 17, 2007
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