Student Loans Vocab

Front

What is the loan term for federal student loans?

Back

10 years, with options for extended terms up to 25 years.

Front

What are loans made/funded by private lenders, such as banks and online lenders called?

Back

Private Student loans.

Front

What type of loan is distributed that is not based on financial need and accrues interest from the time it is disbursed?

Back

Unsubsidized loan.

Front

What is money borrowed to help pay for school costs with the expectation of repayment called?

Back

Student loan.

Front

Who can qualify for a private student loan?

Back

Students enrolled in eligible programs with good credit or a co-signer.

Front

What is a loan that is based on financial need and does not accrue interest while the student is in school?

Back

Subsidized loan.

Front

What is the maximum amount a student can borrow through federal student loans?

Back

It varies based on the student's year in school and dependency status.

Front

What is the difference between federal and private student loans?

Back

Federal loans are funded by the government and have fixed interest rates, while private loans are funded by private lenders and may have variable rates.

Front

What is a loan deferment?

Back

A temporary postponement of loan payments, often available for federal student loans.

Front

What is a loan forbearance?

Back

A temporary reduction or suspension of loan payments, typically granted for financial hardship.