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Financial Literacy: Various Financial Terms 3

Terms

Application

an appeal or request for college admission or employment

She completed an application form for graduate school at the local college.

Deferred

to be suspended until a future time

Repayment of his student loan was deferred while he was attending medical school.

Educational Tax Credit

income tax credit allowed for school expenses such as academic costs and tuition

His parents were able to get an educational tax credit while he was attending college.

Financial Aid

Money such as scholarships, loans or work-study earnings used to support educational needs.

Financial aid applications can require many hours to complete.

Fixed Interest

a loan rate that does not change during the loan period

Many people choose fixed interest loans so they can budget for the amount they have to pay back each month.

Grant

a sum of money given by a government or non-profit organization to fund educational study usually not requiring repayment

The government issues some grants based upon income and need.

Interest Rate

the percentage charged for the use of a sum of money

The interest rate for student loans can vary from bank to bank.

Loan

money lent at an interest rate for a period of time

He took out a loan because attending college is expensive.

Repayment

reimbursement or a return of funds borrowed

Some loans have a grace period before repayment is required.

Tuition

the fee for instruction for a school, college or university

Tuition is usually higher at private schools than state schools.

Work-study

a program that enables students to combine academics with job experience or a job opportunity offered as part of a financial aid package

Students with work-study experience often have an advantage when applying for a job.