Glossary
| Term | Description |
|---|---|
| Pell Grants |
These are federal grants intended to help the most financially needy students. The maximum set by Congress for 2003-2003 is $4,000. |
| Perkins Loans |
This is a Federal financial aid program that consists or low-interest loans for undergraduates and graduate students with exceptional financial need. Loans are awarded by the school. |
| PLUS Loans |
These Federal loans allow parents to borrow money for their children's college education. |
| Postsecondary |
This term means "after high school" and refers to all programs for high school graduates, including programs at two-and four-year colleges and vocational and technical schools. |
| Principal |
This refers to the face value or the amount of money you place in a savings instrument on which interest is earned. |
| Proprietary |
This is a term used to describe postsecondary schools that are private and are legally permitted to make a profit. Most proprietary schools offer technical and vocational courses. |
| PSAT/NMSQT |
This stands for the Preliminary Scholastic Assessment Test/National Merit Scholarship Qualifying Test, a practice test that helps students prepare for the Scholastic Assessment Test (SAT I). The PSAT is usually administered to tenth or eleventh grade students. Although colleges do not see a student's PSATINMSQT score, a student who does very well on this test and who meets many other academic performance criteria may qualify for the National Merit Scholarship Program. |
| Return |
Return refers to the amount of money you earn through a financial investment or savings instrument. You earn money on investments and savings instruments through interest earnings or dividends. |
| Risk |
In reference to saving money or investing money, risk refers to the danger that the money you set aside in some kind of savings plan or investment could be worth less in the future. |
| ROTC |
This stands for Reserve Officers Training Corps program, which is a scholarship program wherein the military covers the cost of tuition, fees, and textbooks and also provides a monthly allowance. Scholarship recipients participate in summer training while in college and fulfill a service commitment after college. |
| SAT I |
This stands for the Scholastic Assessment Test, which is a test that measures a student's mathematical and verbal reasoning abilities. Many colleges in the East and West require students to take the SA T I and to submit their test scores when they apply for admission. Some colleges accept this test or the ACT. (See above for an explanation of the ACT.) Most students take the SAT I or the ACT during their junior or senior year of high school. |
| SAT II Subject Test |
SAT II Subject Tests are offered in many areas of study including English, mathematics, many sciences, history, and foreign languages. Some colleges require students to take one or more SAT II Tests when they apply for admission. |
| Savings Instrument |
Savings instrument refers to any kind of savings plan or mechanism you can use to save money over time. Examples of savings instruments are savings accounts, certificates of deposit (CDs), and money market accounts. |
| Scholarship |
A scholarship is a sum of money given to a student for the purposes of paying at least part of the cost of college. Scholarships can be awarded to students based on students' academic achievements or on many other factors. |
| SEOG (Supplemental Educational Opportunity Grant) |
This is a Federal award that helps undergraduates with exceptional financial need, and is awarded by the school. The SEOG does not have to be paid back. |
| Stafford Loans |
These are student loans offered by the Federal Government. There are two types of Stafford Loans – one need-based and another non-need-based. Under the Stafford Loan programs, students can borrow money to attend school and the Federal Government will guarantee the loan in case of default. Under the Stafford Loan programs, the combined loan limits are $2,625 for the first year, $3,500 for the second year, $5,500 for the third or more years. An undergraduate cannot borrow more than a total of $23,000. |
| Transcript |
This is a list of all the courses a student has taken with the grades that the student earned in each course. A college will often require a student to submit his or her high school transcript when the student when the student applies for admission to the college. |
| Tuition |
This is the amount of money that colleges charge for classroom and other instruction and use of some facilities such as libraries. Tuition can range from a few hundred dollars per year to more than $20,000. A few colleges do not charge any tuition. |
| William D. Ford Federal Direct Loans |
Under this new program, students may obtain Federal loans directly from their college or university with funds provided by the U.S. Department of Education instead of a bank or other lender. |
| Work-Study Programs |
These programs are offered by many colleges. They allow students to work part time during the school year as part of their financial aid package. The jobs are usually on campus and the money earned is used to pay for tuition or other college charges. |
