Glossary of Student Loan Related Terms

California Student Aid Commission (CSAC)

A guarantor of federal loans in California.

CAM

Common Account Management

Campus-based Aid

Financial aid programs administered by the university. The federal government provides the university with a fixed annual allocation, which is awarded by the financial aid administrator to deserving students. Such programs include the Perkins Loan, Supplemental Education Opportunity Grant and Federal Work-Study. Note that there is no guarantee that every eligible student will receive financial aid through these programs, because the awards are made from a fixed pool of money. This is a key difference between campus-based loan programs and the Direct Loan Program. 

Campus-Based Programs

The Federal Perkins Loan, Federal Work-Study, and Federal Supplemental Educational Opportunity Grant programs. These programs are administered by a school's financial aid office. A student's financial aid package may contain aid from one or more of these programs.

Cancellation

Some loan programs provide for cancellation of the loan under certain circumstances, such as death or permanent disability of the borrower. Some of the federal student loan programs have additional cancellation provisions. 

Cancellation (of a Guarantee)

The revocation of a federal loan guarantee that occurs if: 1. The loan funds are never disbursed;2. The borrower's check is returned uncashed to the lender within 120 days of disbursement; 3. The loan proceeds disbursed by EFT or master check have not been released from the school's restricted account within 120 days of disbursement; 4. The loan is paid in full within 120 days of disbursement;The guarantee is not lost on the entire loan if a disbursement is canceled.

Cancelled Loan

A status assigned to a loan that is no longer being processed because the loan proceeds have been returned to the lender. Partial cancellations can occur when a portion of the loan proceeds are returned.

Capital Gain

An increase in the value of an asset such as stocks, bonds, mutual funds and real estate between the time the asset was purchased and the time the asset was sold.

Capitalization

The practice of adding unpaid interest charges to the principal balance of an educational loan, thereby increasing the size of the loan. Interest is then charged on the new balance, including both the unpaid principal and the accrued interest. Capitalizing the interest increases the monthly payment and the amount of money you will have to repay. If you can afford to pay the interest as it accrues, you are better off not capitalizing.

Capitalized

An increase in the principal balance of a Stafford, SLS, PLUS, Federal Consolidation, or alternative loan that occurs when a lender adds the interest accrued on the loan to the outstanding balance.

CASHE

College Aid Sources for Higher Education

CBA

Consumer Banking Association

CBHE?

Coordinating Board for Higher Education (MO)

Central Processing System (CPS)

The U.S. Department of Education's computer system; matches and calculates the Expected Family Contribution (EFC) and delivers The Student Aid Report (SAR).

Certification

Generally, the act of attesting that something is true or meets a certain standard. The financial aid officer confirms for the lender and guarantor that a loan applicant meets certain eligibility criteria, including student enrollment, eligible financial aid amounts, etc.

Certified Loan Amount

The loan amount a financial aid officer has confirmed that a student or parent is eligible to borrow based on the school's cost of attendance and other financial aid already received by the student. The amount can be equal to or less than Cost-Less-Aid.

CFR

Code of Federal Regulations

Citizen/Eligible Non-citizen

An eligibility requirement that must be met by most loan borrowers and recipients. Borrower/student must be a U.S. citizen or eligible non-citizen. Eligible non-citizens include: 1. U.S. permanent resident alien with an Alien Registration Receipt Card Form I-151or I-551;2. U.S. temporary resident who intends to become a citizen or resident and who holds a Temporary Resident Card (I-688);3. Refugee with a Departure Record (I-94) from the U.S. Immigration and Naturalization Service (INS)

CLEP

College-Level Examination Program

Co-signer

A cosigner on a loan assumes responsibility for the loan if the borrower should fail to repay it.

Co-signer (Co-applicant)

An individual who co-signs on a loan; if the first borrower on a loan defaults, the co-signer (in most cases) is responsible for repayment on that loan.

COA

Cost of Attendance

Collateral

Property that is used to secure a loan. If the borrower defaults on the loan, the lender can seize the collateral. For example, a mortgage is usually secured by the house purchased with the loan.

Collection Agency

A company hired by the lender or guarantee agency to recover defaulted loans.

College Board

A nonprofit educational association of colleges, universities, educational systems, and other educational institutions. 

College Board Scholastic Aptitude Test (SAT)

Test required by some colleges for admissions.

College Foundation, Inc (CFI)

An origination agent and servicer of federal student loans in North Carolina.

College Work-Study (CWS)

College Work-Study is simply a part-time job. This term is sometimes erroneously used to refer to the Federal Work-Study Program. 

Combined Sub/Unsub Stafford

A long-term, low-interest loan designed to provide students with additional funds for college. A portion of the loan may be subsidized, meaning the interest is paid by the government while the student is enrolled in school and during periods of grace and deferment. Unsubsidized loans accrue interest at the cost of the borrower.

Commercial Lender

Commercial institutions that loan money, including banks, credit unions, mutual savings banks, savings and loan associations, stock savings banks, or trust companies.

Common Application

A standardized application and promissory note approved by the Department of Education by which a borrower applies for a FFELP loan. Different application forms are required for Federal Stafford and Federal PLUS loans.

Common Deferment Forms

Standardized forms approved by the Department of Education that must be used by borrowers requesting deferments.

Commuter Student

A student who lives at home and commutes to school every day.

Commuting Student

A student that lives at home or off campus.

Compound Interest (Capitalization)

Interest paid on a loan's principal and on any unpaid interest. Compound interest (or capitalization) increases the amount of money the borrower must repay and increases monthly payments.

Compounded Interest

Interest that is paid on both the principal balance of the loan and on any accrued (unpaid) interest. Capitalizing the interest on an unsubsidized Stafford loan is a form of compounding.

Connecticut Assistance for Loan Servicing (CALS)

A servicer of Connecticut guaranteed federal loans.

Connecticut Student Loan Foundation (CSLF)

A guarantor of federal loans in Connecticut.

Consolidated Repayment Plan

The Federal Family Education Loan Consolidation Plan allows borrowers to combine all eligible federal loans into a single new loan with one lower monthly payment over an extended repayment period. Because the monthly payment amount is reduced and the repayment period is extended, the total amount repaid by the borrower will be greater than under the standard repayment plan.

Consolidation

A loan that combines several student loans into one bigger loan from a single lender. The consolidation loan is used to pay off the balances on the other loans.

Consolidation Loan

Allows the borrower to combine a number of existing loans into one loan. Borrowers typically consolidate loans to lower monthly payments.

Consolidation Loan Program

A Federal loan program which enables a borrower to combine two or more eligible loans into a new loan so the borrower can make one monthly payment and, in some cases, extend his/her repayment period thus lowering the monthly payment.

Cooperative Education

A program where the student spends time engaged in employment related to their major in addition to regular classroom study.

Cooperative Education (Co-op)

Colleges and universities pay students to work in a professional setting while attending school.

Cost of Attendance (COA)

The total amount it should cost the student to go to school, including tuition and fees, room and board, allowances for books and supplies, transportation, and personal and incidental expenses. Loan fees, if applicable, may also be included in the COA. Child care and expenses for disabilities may also be included at the discretion of the financial aid administrator.  Schools establish different standard budget amounts for students living on-campus and off-campus, married and unmarried students, and in-state and out-of-state students.

Cost-Less-Aid

A figure calculated by deducting all financial assistance the student has been or will be awarded for the loan period from the cost of attendance for the same period of enrollment.

CPS

Central Processing System

Credit Check for PLUS Loans

Review of parent applicant's credit information. Wells Fargo makes it easy to qualify.

Credit History

A record of an individual's past performance of borrowing and repaying debts.

Credit Rating

An evaluation of the likelihood of a borrower to default on a loan. Credit bureaus and credit reporting agencies provide this information to banks and businesses to help them decide whether to issue a loan or extend credit. Your credit rating may include your payment history, a list of current and past credit accounts and their balances, employment and personal information, and a history of past credit problems. Defaulting on a loan can hurt your credit rating.

CSS

College Scholarship Service

CSS Profile

College Scholarship Service (CSS) is an application required by some private colleges and universities to determine eligibility for non-federal financial aid.

Cumulative Education Loan (Amount) Debt

The total loan amount disbursed to a borrower throughout the student's academic career. This amount must not exceed applicable total loan limits associated with a particular loan program.

Custodial Parent

if a student's parents are divorced or separated, the custodial parent is the one with whom the student lived the most during the past 12 months. The student's need analysis is based on financial information supplied by the custodial parent.

CWS?

College Work Study