Are you a student, relying on student loans to get you through college or university? Or are you just applying for a student loan, looking forward to a higher education? The process of applying for any loan, let alone a student loan, can be confusing if you don’t understand the terms that are fired at you. The accounting sector sometimes forgets that you haven’t got your education yet – that’s why you’re applying for a student loan.

So we’ve compiled this list of student loan terms and definitions to give you an education before your education. You need to know, just like the rest of your studies, exactly what’s going on. So read on, and learn.

Accrued interest is the amount of interest, calculated daily, that’s accumulated on the unpaid balance of your loan.

Amortization is the process that reduces your loan balance by making monthly payments.

Assets refer to your financial worth, including your home, business, savings and checking account, bonds, stocks, trust funds, real estate, etc.

An award letter is issued by a college’s Financial Aid Office (FAO), listing all the financial assistance offered to a student.

A borrower is a person to whom a loan is given with the condition that he repay it. A promissory note is signed as a formal promise to repay the loan. Capitalization occurs when unpaid interest is added to the principal balance of the loan, thus increasing the amount of the loan, and increasing monthly payments.

A co-borrower, a second or additional party, may receive part of the loan proceeds and agrees to repay the loan.

A co-signer signs a promissory note, thus agreeing to pay the loan if the borrower defaults.

The cost of attendance is the total amount a student has to pay, determined by the college’s FAO, to attend school for one academic year. It may include tuition, room and board, books, supplies, transportation and personal expenses.

Credit-based loans are based on your credit worthiness as opposed to the Federal Stafford Loans and grants, which are determined by a need analysis process, based mostly on the cost of education. And then Don’t forget the Student Credit Card. Default occurs when you fail to pay your loan according to the terms on your promissory note.

Deferment refers to the period of time during your repayment in which you, after meeting certain criteria, aren’t required to make your regular monthly payments. If a payment isn’t received by the due date, it’s considered delinquent.

Direct lending schools are colleges or universities which have chosen to place all their students’ federally-insured student loans through the Federal Direct Lending Program.

A disbursement notification marks the successful completion of the loan application process. It informs you that your loan has been approved, and states when the money will be sent, as well as the amount of the loan, including any fees.

A disclosure statement informs the involved parties of the actual cost and terms of a loan, including the interest rate and any additional finance charges.

An emergency loan program provides for a student to get a short-term, low-interest loan, administered by the school’s FAO. An exit interview is a counseling session conducted with the school’s FAO before a student graduates or withdraws, to review the terms and obligations of a student loan.

The EFC refers to what a family is expected to pay toward the cost of the college loan. It’s determined by the FAFSA need analysis formula established by the federal government, and is found on the Student Aid Report (SAR). The FAFSA or, Free Application for Federal Student Aid, is a standard federal form that determines your eligibility for most types of financial aid. Your eligibility is determined by your income, asset, and tax information from you and/or your parents.

The FFEL program is authorized by the federal government in the Higher Education Act of 1965. The loans in this program are funded by lenders, and guaranteed by guaranty agencies; but they’re ultimately insured by the federal government.

Forbearance is temporary postponement of payments of the principal of a loan; interest only may be paid, or it may be added on to the end of the loan.

A financial aid package is the total amount of assistance available to the student, including all grants, scholarships, work-study and loans from school, state and federal programs, as listed in a college’s financial aid award letter.

Financial need is the difference between the total cost of attendance and the EFC.

The grace period is the amount of time before the principal loan repayment begins after a student graduates, leaves school or drops below half-time status. Payments don’t need to be paid during this time.

A guaranty agency is a state or non-profit organization, which insures student loans, pursuant to an agreement with the Secretary of Education under the Higher Education Act.

Interest is a fee charged to borrow money, usually expressed as a percentage of the outstanding amount, which accrues over the life of a loan. A late fee is charged by the lender if a student loan payment isn’t received with 15 days of the due date.

An MPN is an agreement the borrower signs that legally binds him to pay the loan, with interest, in periodic installments. Multiple disbursements are paid in more than one transaction.

An origination fee is charged by the federal government on FFEL loans to cover the cost of processing the loan.

The payoff balance refers to the total amount you’d owe if you paid off your entire loan, including the outstanding principal plus interest. The principal is the amount of the loan that has to be repaid; the interest is added to the principal and included in your payment and the Status refers to the condition of a student loan.

An SAR is sent to a student by the government 4-6 weeks after submitting an FAFAS. It lets the student know what he’s eligible for as far as the EFC and other financial federal student aid is concerned. The government pays the interest on a subsidized loan while the student is enrolled in school at least half-time and during grace periods and deferment.

With an unsubsidized loan, the borrower always has to pay the interest while he’s in school, or during deferment, forbearance and grace periods.

So there you have a comprehensive list of relevant terms. Student loans don’t have to be complicated. You have enough to learn once you start your studies. Make sure you understand these terms and you won’t have to worry when you apply for a student loan. Then, using that loan to get a good education, you can move out into the world and work towards your life goals.

A credit card is a convenient way to obtain credit. You can decide how much credit you want to use and then decide how much you want to repay each month. It is different from a debit card in that it does not remove money from the user’s account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user).

Under the Act, open-end credit accounts such as credit cards are governed by a strict set of federally mandated dispute settlement procedures. Disputes regarding fraudulent credit card charges, unexplained transactions, and charges for goods and services you didn’t accept or weren’t delivered as agreed are all covered. With interest rates having increased twice this year, it is worth customers making sure their credit cards are not costing more than they need to.

Interest rates can be fixed or “variable rate”-the APR may change from time to time. The rate may be tied to another interest rate, such as the prime rate or the Treasury bill rate. Some secured credit cards are only partially secured. The customer my be required to put an amount as security deposit and the credit card issuer provides a credit limit that may be two or three times the amount of the deposit

Today there is less cash in the average consumers pocket, and more plastic than ever before. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. The most common credit card size, known as ID-1, is 85.60. Citibank credit cards are some of the most popular credit cards in the world today.

Credit cards are also provide convenience, flexibility and the means to shop online. To maximize the benefits that credit cards can offer you, get as much information as you can. Visa is the number one credit card used by people around the world, and they offer exceptional convenience and reliability. Visa has unsurpassed acceptance in more than 150 countries, as well as at Internet merchants.

Many secured credit cards are only partially secured. The cardholder usually pays a certain amount of money and the credit card issuer provides a credit limit that may be two or three times the amount of the deposit. Nearly 700 million general-purpose credit cards are now in circulation in the U.S., according to the Nilson Report. The average American now has more than five credit cards, according to Celent Inc., a Boston-based research and consulting firm.

Many people assume that business and corporate credit cards are the same things. Obviously, the best credit cards are those with the best fees, and that offer the most rewards, like a gas credit card . Student credit cards are aimed at those with fair, bad or no history. These cards will help students improve damaged score or even build credit history from scratch.

A credit card is a delicate tool because it carries a level of responsibility and financial acumen that not all consumers have. Using a credit card enables you to pay off the debt within the next month or making several payments over several months or years until the debt is fully paid. It facilitates the purchase of goods and services on credit. They are are issued to you based on your income and information on your credit report.

Although most people know that debt can be a problem, one kind of debt is often overlooked: college credit card debt. College students with their first credit cards are in great danger of getting buried by debt. Leaving home and going to college can be a difficult and disorienting time, and many people start to pile on credit card debt. Students should understand how and why this happens so they don’t start their “real lives” under tons of debt.

College credit card debt starts mostly with your first credit card. The trend is encouraged by companies fighting for customer loyalty in early phase of your life and thus they make all efforts to get you your first credit card. For someone who’s is just 18 or 19 years old, that sounds like free money and that is the start of a college credit card debt.

Once students approach the age of 21, things change. At that magic age, students are suddenly able to (legally) drink, whether they are mature enough to handle it or not. They buy drinks at local bars and spring break destinations alike. They spend while they have little to no income, which increases their debt.

In the end, either the parents have to cough up the dough or the students end up having that sword of debt hanging over their heads as they prepare to leave college and enter the real world.

Contrary to what most people think, college card credit card debt can easily be controlled. Students need to be made aware of the nuances of a college credit card debt. With some general assistance in future planning, and simple discipline on the part of the student, it is entirely possible to prevent a young adult entering a professional life with the burden of heavy debts. It is important to know though, that ultimately, the responsibility of their actions, lies with the students.