FAFSA: The Free Application for Federal Student Aid is the application students use to apply for grants, work-study funds and loans. Some schools also use this application for scholarship qualifications or use additional forms.

Federal Family Educational Loan Program (FFELP): The FFELP includes subsidized Stafford Loans, unsubsidized Stafford Loans, and Parent Loans for Undergraduate Students (PLUS). Funds for these loans are provided by private lenders. The loans are guaranteed by guarantors and reinsured by the federal government ( this does not mean you don‘t have to pay them back only that the school is guaranteed payment). The student is the borrower of Stafford Loans, and the parent is the borrower (on behalf of the student) of PLUS loans.

Financial Aid Package: The total amount of financial aid that a school awards a student. Grants, work-study funds and loans are combined to help meet the student's financial/educational needs. Some aid programs have limited funds, so applying early is very, very important.

Forbearance: A period of time during which a borrower, who is willing but unable to make payments and who does not qualify for a deferment, is permitted to temporarily cease or reduce the amount of payments. Some forbearances are a right of eligible borrowers, while others are granted at the discretion of the lender. The borrower is always responsible for repayment of accrued interest charges. The borrower can pay only the interest or allow the interest to be added to the principal ( all other debt not including interest and fees) of the loan.

Grace Period: A specific period of time after the student leaves school or is enrolled less than half-time during which he or she is not required to make loan payments. This period is intended to provide the borrower with time to find employment and prepare to repay the loan. The grace period ends 6-12 months after it begins, depending on the interest rate at which the loan is distributed. The number of months allowed for the grace period is disclosed to the borrower at or before the time of the loan is awarded. Parental Loans for Undergraduate Students (PLUS), and Consolidated loans do not have grace periods.

Grad PLUS: [See PLUS Loan] Graduate/professional students may receive an in-school deferment on their PLUS loans until their status changes to less than half-time. The PLUS loan available for graduate/professional students is a fixed rate of 8.5%. The PLUS MPN addendum contains important information about the PLUS loan for graduate/professional students.

Graduated Repayment: Method of repayment in which the borrower's payments gradually increase because it is assumed borrower earnings will also increase. Generally payments increase after the first 24 months of repayment.

Guaranty Agencies: The guaranty agency (sometimes called the guarantor) oversees the student loan process - including approval of the loan
- guarantying repayment to if the borrower defaults (does not repay the loan)
- providing public information about student loans
- keeping permanent records of all loans made through it
- enforcing state and federal rules
- collection of defaulted loans.