Direct Consolidation Loan

STUDENT LOAN CONSOLIDATION GLOSSARY

A

Academic merit

Proven ability or accomplishment at college/university.

Accumulated interest

The collected interest.

Application

A request, as for assistance, employment, or admission to a school.

Assets

Anything of monetary value that is owned by a person; Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).

Award letter

Information about what type of financial aid you qualify for, and the amount of money you can receive by scholarships, grants, federal or private loans or working-study programs (if you have applied for a work-study program), including a possible combination of all types of financial aid.

B

Balance

Equal debit and credit: a position where the amounts on the debit and credit sides of an account are equal and cancel each other out.

Bank

A business that keeps money for individuals or companies, exchanges currencies, makes loans, and offers other financial services.

Bankrupt

A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.

Borrower

Receive money as loan: to arrange to be given money by somebody or by a bank or other financial institution for a fixed period of time. The money is normally paid back in instalments, with interest.