Monday, 05 06, 2013
High school seniors headed to college this fall need to become familiar with some financial aid terms that they will probably hear. This list from the Kentucky Higher Education Assistance Authority (KHEAA) may help.
· Accrue. This term, which means to increase or accumulate, is often used to refer to interest on loans. It means that the interest is added to your loan until the loan is fully paid.
· Bursar. On many campuses, the bursar is the official in charge of funds. You will make tuition payments to that office and will receive financial aid funds from that office.
· Capitalize. You may see language that says your loan interest will be capitalized if you don’t pay it while in school. This means it will be added to the principal.
· Disburse. This term means to pay out. You may see it as a verb telling you that your financial aid will be disbursed by a certain date. Or you may see it as a noun, disbursement.
· Grace period. After you finish college or drop below half-time status, you have a certain length of time before you have to make payments on your federal loans. That time is the grace period.
· Master Promissory Note (MPN). This is the form you must sign before you can receive federal loans. It is a legally binding promise that you will repay the loans.
KHEAA is the state agency that administers Kentucky’s student financial aid programs, including the Kentucky Educational Excellence Scholarship (KEES).
To find links to other useful education websites, go to www.gotocollege.ky.gov. For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602; or call 800-928-8926, ext. 6-7372.