|Glossary of college financing terms
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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.
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
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.
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
||-- Posted: Sept. 17, 2007