Chapter 3 Student Loans ( Section 3.2 & 3.3)

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Across
  1. 1. A loan that allows parents (or graduate students) to borrow money for college costs. The borrowers must be creditworthy.
  2. 4. Describes the situation when no payment is required on a loan, such as a student loan while the student is in school and during a 6-month grace period after graduating.
  3. 7. A student loan that is not need based. Students are expected to pay the interest that accrues from the time the money is received. No payment is required on the loan while the student is in school and during a 6-month grace period after graduation.
  4. 10. A need-based student loan for which borrowers can defer interest payments for a period of time. No payment is required on the loan while the student is in school and during a 6-month grace period after graduation. Federal government pays interest while student attends school.
  5. 11. The Free Application for Federal Student Aid, or ________, is the form on which a loan applicant must supply personal and financial data that will assist in the loan decision-making process. FAFSA is a federal form, but many private educational and lending institutions also require it.
  6. 13. Prepayment ______ is an amount borrowers sometimes must pay if they wish to pay back an entire loan before the due date.
  7. 14. _________ privilege is an agreement that allows a borrower to make payments before the due date to reduce the amount of interest.
  8. 16. ______ assignment is a voluntary deduction from an employee’s paycheck, used to pay off debts.
  9. 17. This is the last monthly payment on some loans that is much greater than the previous payments.
  10. 18. The _______ institution is an organization that extends loans, making their profit by charging interest; includes banks, savings and loans, credit unions, consumer finance companies, life insurance companies, and pawnshops.
  11. 19. Describes the action when interest builds up or adds to the principal.
  12. 21. An agreement that states the conditions of a loan is called a _________ note; a borrower’s signature confirms a promise to pay back the loan as outlined in the agreement.
  13. 22. The amount of tuition a family is expected to personally cover based on financial information information submitted to a student loan agency is the ______ family contribution.
Down
  1. 2. A type of insurance that pays a specified amount upon the policyholder’s death; a creditor often requires a borrower to take out life insurance to cover the loan in the event the borrower dies before the loan is paid.
  2. 3. A type of loan that is available for students with exceptional financial need.
  3. 5. A loan issued by a bank, a credit union, a school, or a state agency.
  4. 6. An involuntary form of wage assignment, referred to as wage _________, often done by court order.
  5. 8. Security, such as a personal belonging, car or boat title, CD, or stock certificates, that insures a loan will be repaid.
  6. 9. A loan that the federal government funds and makes available to students.
  7. 12. Student Aid Report, or _____, a report sent to a family after its Free Application for Federal Student Aid is processed, includes information about which student loans are available.
  8. 15. A person that signs a promissory note along with the borrower and agrees to pay back the loan if the borrower does not.
  9. 20. A _______ school is a specialized institution that provides students with the necessary skills to be successful at a particular job; sometimes known as trade, vocational, or technical schools.