Accrued interest
Interest calculated on the unpaid principal payable by the borrower or federal government.

Amortization
The gradual reduction of a loan debt by periodic installment (i.e. monthly) payments of principal and interest.

Cancellation
Discharge of a portion or the total loan.

Compounded interest
Unpaid interest added to the principal of a loan, increasing both the loan principal and monthly payments.

Cost of Attendance
The overall cost of attending Antioch including direct expenses (tuition and fees) and indirect expenses such as living expenses. The amount includes tuition, fees, books, transportation expenses, personal expenses and room and board. The fiscal year runs from July 1 to June 30 each year.

Default
Failure to meet the terms and conditions of your loan’s promissory note. A default becomes part of your permanent credit record.

Deferment
An approved postponement of payment for a specified period to which the borrower is entitled.

Delinquent
Failure to make an installment payment when due, or to meet other terms of the Promissory Note.

Disbursement
Loan proceeds issued by the lender.

 

EFC (expected family contribution)
Derived from a formula used to evaluate your family’s resources. The formula takes several variables into account including which version of the 1040 you file, your age, marital status, number of dependents, income, and assets. This information is collected on the FAFSA and reported on the SAR (Student Aid Report).

FAFSA (Free Application for Federal Student Aid)
The form which collects information to determine eligibility for federal student aid.

Federal Direct Subsidized Loan
A federal loan awarded on the basis of need. While you are attending school the federal government pays the interest for you.

Federal Direct Unsubsidized Loan
Financial need is not required to borrow an unsubsidized loan. Interest starts accruing as soon as disbursements are made. You may pay the interest as it accrues or delay paying it until your repayment begins. The interest will be added to your loan principal you do not choose to pay it as it accrues.

Forbearance
Agreement between the lender and the borrower to permit the temporary cessation of principal payments or to accept lower payments than those required in the terms of repayment.

Federal Work Study (FWS)
A Federal Title IV Program which allows students to earn funds based on eligibility.

 

Grace period
A period of time during which no payment is required.

Grant
Gift aid which does not have to be repaid.

Guarantee agency
A state or private non-profit entity that administers a student loan insurance program, i.e. NHHEAF or VSAC.

Insurance fee
A fee deducted from the principal which is sent to a guarantee agency or the government to offset processing costs.

Principal
The gross amount of the loan you borrow, and the amount upon which interest will be charged.

Promissory note
A legally binding contract setting both the terms and conditions under which you promise to repay your loan.

Repayment schedule
The schedule which sets your monthly payment amount (principal and interest) and the length of time allowed to repay your loan.

Servicer
An entity contracted to administer and collect your loan for the lender.

Student Aid Report (SAR)
The form which reports back to you the data you provided on the FAFSA and which calculates your EFC.