Glossary of Student Loan Related Terms

Bachelor's Degree

The undergraduate degree granted by four-year colleges and universities.

Balloon Payment

A larger than usual payment used to pay off the outstanding balance of a loan without penalty. Not all loans allow balloon payments. Simple interest loans, like many educational loans, generally do allow balloon payments.

Bankruptcy

A person is declared bankrupt when they are found to be legally insolvent and the person’s property is distributed among his/her creditors or otherwise administered to satisfy the interests of creditors.

Base Year

The tax year prior to the academic year (award year) for which financial aid is requested. The base year runs from January 1 of the junior year in high school through December 31 of the senior year. Financial information from this year is used to determine eligibility for financial aid.

BIA

Bureau of Indian Affairs

Borrower

The person who takes out the loan.

Borrower Authorization Statement

The borrower's written authorization for the release of the initial and any subsequent disbursement of FFEL program loan proceeds disbursed on behalf of the borrower by electronic funds transfer (EFT) or master check to an account of the school.

Budget

The estimated cost of attendance for an institution including direct (tuition, fees) and indirect (transportation, books and supplies, room and board, and other expenses) costs.

Bursar?s Office

The university office that is responsible for the billing and collection of university charges.