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| S-V | • Scholarships - Scholarships are a financial aid award that does not have to be repaid. They are generally made based on an applicant meeting certain eligibility criteria.
• Secured Loan - Loans that are backed by collateral such as real estate, cars, or other assets. In case the borrower defaults on this type of loan, the lender reserves the right to take collateral used in acquiring the loan into their possession.
• Servicer - Paid by the lender, they oversee the status of a loan, distribute funds, collect payments, and handle deferments, forbearances, and other related issues.
• Stafford Loan - A federally guaranteed loan program that allows students to borrow funds from lenders. These loans allow the student to defer payments while he/she is in school. As for the interest rate for new Stafford Loans, it is variable but will not exceed 8.25%.
• Standard Repayment - A repayment alternative in which a borrower pays a set amount monthly over the entire repayment term. Such monthly payments can be lowered through school loan consolidation. They are also called Level Repayment or Simple Repayment.
• Stipend - A fixed salary often awarded to students who have a fellowship, scholarship, or grant.
• Student Aid Report (SAR) - The official summary of financial aid eligibility sent to the student by the government once needs analysis has been performed.
• Subsidized Stafford Loan - This is a need-based student loan. Interest that accrues on subsidized Stafford Loans while the student is in school (at least half-time) is paid by the federal government on the student's behalf.
• Treasury Bill Rate (T-Bill Rate) - The rate paid by the government on its short-term borrowing. The rate is reset periodically. They are indexes used by variable-rate loan programs.
• Unsecured Loan - A type of loan that does not require the borrower to provide the lender with collateral. Therefore, these types of loans typically have higher interest rates and often require a co-signer.
• Unsubsidized Stafford Loan - A non-need based loan program, so students with no financial need can even qualify for this aid program. The borrower must pay interest that accrues on unsubsidized loans, even while he/she is in school. Borrowers may make periodic payments (monthly or quarterly, depending on the lender's policy) or allow the interest to accrue throughout enrollment and have the interest "capitalized" (added to the loan's principle balance). Capitalization increases the total cost of a loan and eliminates having to make payments while in school.
• Variable Interest - Interest rates that can fluctuate. A lot of variable-interest loans have an annual or maximum cap, which prevents them from exceeding a set amount within a certain period of time.
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