Academic Year- The school year for which a student is enrolled and/or financial aid is awarded.

Annual fee- A bank charge for use of a credit card levied each year, which can range from $15 to $300, billed directly to the customer's monthly statement. Many credit cards come without an annual fee.

Annual Percentage Rate (APR)- A yearly rate of interest that includes fees and costs paid to acquire the loan. The rate is calculated by taking the average compound interest rate over the term of the loan, so borrowers can compare loans/credit cards.

ATM/Debit Card- A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature.

Balance Transfer- The process of moving an unpaid credit card debt from one issuer to another. Card issuers sometimes offer teaser rates to encourage balance transfers coming in and balance transfer fees to discourage them from going out.

Bankruptcy- Bankruptcy is the process of liquidating one’s assets to pay off creditors/lenders. Bankruptcy is considered the credit solution of last resort. Unlike negative credit information that stays on a credit report for seven years, bankruptcies stay on a credit report for 10 years. Bankruptcy can make it difficult to rent an apartment, buy a house or condo, get some types of insurance, get additional credit, and sometimes, get a job. In some cases, bankruptcy may not be an easily available option.

Budget/Spending Plan- An itemized forecast of income and expenses commonly broken into monthly intervals and typically covering a one-year period.

Cash Advance Fee- A charge by the bank for using credit cards to obtain cash. This fee can be stated in terms of a flat per-transaction fee or a percentage of the amount of the cash advance. For example, the fee may be expressed as follows: " 2% of the amount or no less than $5." The cost of a cash advance is also higher because there generally is no grace period. Interest accrues from the moment the money is withdrawn.

Compound Interest- Interest paid on interest from previous periods in addition to principal. Essentially, compounding involves adding interest to principal and any previous interest in order to calculate interest in the next period. Compound interest may be figured daily, monthly, quarterly, semi-annually or annually.

Credit- Money that a lender gives to a borrower on condition of repayment over a certain period.

Credit Bureau- A company that collects and sells information about how people handle credit. It issues credit reports that list how individuals manage their debts and make payments. The three major national credit bureaus are Equifax, Experian (formerly TRW) and Trans Union.

Credit Card- A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.

Credit Report- A report that contains information about your borrowing habits and money-managing skills. Lenders use it to determine whether to approve a loan and to set the terms. A person with a good credit report is likely to get a better interest rate than someone with a poor credit report.

Credit Score/Rating- A judgment of someone's ability to repay debts, based on current and projected income and history of payment of past debts. Sometimes expressed as a number.

Creditor/Lender- One who is owed money.The issuer of any loans or credit cards you have is your creditor/lender.

Debt-to-Income Ratio- The percentage of income spent to pay off loans for obligations such as auto loans, student loans and credit card balances. Lenders use this ratio to determine credit-worthiness. The higher the ratio the harder it is to qualify for a loan.

Deferment- Federal student loan repayment option that allows the borrower to temporarily postpone payment of the loan. During periods of deferment on subsidized loans, the principal payments are postponed and interest is billed to the government. When unsubsidized loans are deferred, only the principal payments are postponed and the borrower is responsible for the accrued interest.

Expenses- Costs incurred. Includes living and food costs, transportation, debt payments, entertainment, etc. When attending school expenses also include tuition, fees and books.

Fees- Charges that may be assessed to your account based on any number of activities or reasons. Some fees can be avoided by monitoring credit card use, and others are unavoidable. Types of fees include: annual fee, cash advance fee, late payment fee, and over the limit fee. For more information, see the fees listed above in the Glossary.

Fine Print- The information contained in a credit card offer or loan application that describes the terms and conditions of the loan, including APR, grace period and fees associated with the loan.

Fixed Rate- An interest rate on a loan that does not change for the life of the loan.

Forbearance- Federal student loan repayment option that allows the borrower to temporarily postpone or reduce the monthly payment of the loan. Regardless of the loan type, interest continues to accrue during the forbearance period.

Grace Period (on credit cards)- If the credit card user does not carry a balance, the grace period is the interest-free time a lender allows between the transaction date and the billing date. The standard grace period is usually between 20 and 30 days. If there is no grace period, finance charges will accrue the moment a purchase is made with the credit card. People who carry a balance on their credit cards have no grace period.

Grace Period (on student loans)- The time period after a borrower leaves school or drops below half-time enrollment during which he/she is not required to make payments on a student loan. The duration of the grace period for Stafford loans is 6 months.

Graduated Repayment- Loan repayment plan that calls for payment amounts to be lower at the beginning of the repayment period and increase over time. Borrower has up to 10 years to repay the loan.

Holder- The lender, institution or agency that originated the loan and holds its legal title, or a lender or secondary market that purchased the loan from the original holder.

Identity Theft- When someone assumes your identity and opens bank, credit card or other accounts to commit fraud or theft.

Impulse Purchases- Last minute purchases that are generally categorized as wants rather than needs. These types of purchases can be much harder to resist when carrying a credit card, since cash-flow is not directly and immediately impacted.

Income- Money that an individual earns or receives, typically on a monthly basis. Sources may be salary, gifts, financial aid, etc.

Income-Sensitive Repayment- Loan repayment plan that is based on the borrower's income and the total amount borrowed. Payments increase as income rises. Repayment period will vary based on the income and loan amount.

Interest (on loans/credit cards)- A charge for the use of money. Interest is calculated as a percentage rate of the loan/credit account principal. The interest rate can be fixed, which means it does not change over the life of the loan, or the rate can be variable, in which case it changes periodically. The percentage rate may be tied to one of several indexes such as the Prime Rate, LIBOR or U.S. Treasury Bills.

Interest Deductibility- A government sponsored tax benefit for borrowers in repayment on their federal student loans. A borrower may be able to claim a tax deduction on the amount of interest he/she has paid during the year.

Introductory Rate- The low rate charged by a lender for an initial period to entice borrowers to accept the credit terms. After the introductory period is over, the rate charged increases to the indexed rate or the stated interest rate. Often called a teaser rate.

Late Payment Fee- Charge imposed on a debtor for not paying an amount on or before the date it was due.

Lender- The bank, credit union or other approved entity from which a borrower obtains a loan.

Loan Consolidation- To refinance one or more outstanding federal student loans and create a single new loan. The new loan includes a fixed interest rate, new terms and may have an extended repayment period of up to 30 years.

Minimum Payment- The minimum amount a cardholder can pay to keep the account from going into default. Most card issuers require a minimum payment of 2 percent of the outstanding balance.

National Student Loan Data System (NSLDS)- NSLDS is the U.S. Department of Education’s central database for student aid records. NSLDS provides a centralized, integrated view of your federal Title IV education loans and grants, tracking from when they’re approved through when you pay off your loans. May be accessed using a PIN. Web address: http://nslds.ed.gov

Over-the-Limit Fee- A fee charged for exceeding the credit limit on the card.

"Pay Yourself First"- Concept of saving for the future by putting money aside before paying regular monthly bills.

Repayment Plan/Schedule- Federal Stafford loans offer several repayment plan options that vary in length of period, payment amount and total repayment amount. The borrower may choose the repayment plan that best fits his/her spending plan. For more information on the four plans, see also Standard Repayment, Graduated Repayment, Income-sensitive Repayment and Extended Repayment.

Rewards (i.e. Cashback, Airline Miles, etc.)- Some credit cards allow the customer to accumulate rewards in the form of cash, merchandise or services based on card usage.

Secured Card- A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments. It is used by people new to credit, or people trying to rebuild their poor credit ratings.

Standard Repayment- Loan repayment plan that provides for fixed annual payment over a fixed period of time. Borrower has up to 10 years to repay the loan.

Subsidized Federal Stafford Loan- Loans based on need. The interest on such loans is paid by the federal government while the student is in school, during the grace period and during eligible deferment periods.

Terms and Conditions- Found on the credit card offer and application, the terms and conditions are a disclosure of all the "rules" that you are agreeing to when you sign the bottom to apply for the credit card. This includes the APR, grace period, and any fees that may be assessed.

Unsecured Debt- Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is a main reason why their interest rate is higher than other forms of lending, such as mortgages, which employ property as collateral.

Unsubsidized Federal Stafford Loan- Loans that are not based on need. The borrower is responsible for paying the interest.

Variable Rate- An interest rate on a loan that changes periodically.