Glossary of Student Loan Related Terms

GA

Guaranty Agency

Gapping

The practice of failing to meet a student's full demonstrated need. 

Garnishment

The practice of withholding a portion of a defaulted borrower's wages to repay his or her loan, without their consent.

Georgia Higher Education Assistance Corporation (GHEAC)

A guarantor of federal loans in Georgia.

Gift Aid

Financial aid, such as grants and scholarships, which does not need to be repaid.

GPA

Grade Point Average

Grace Period

A short time period after graduation during which the borrower is not required to begin repaying his or her student loans. The grace period may also kick in if the borrower leaves school for a reason other than graduation or drops below half-time enrollment. Depending on the type of loan, you will have a grace period of six months (Stafford Loans) or nine months (Perkins Loans) before you must start making payments on your student loans. The PLUS Loans do not have a grace period.

Grade Level

Designation of the student as a first-year (freshman), second-year (sophomore), etc. undergraduate or graduate/professional student by the school in accordance with the school's normal standards.

Grade Point Average (GPA)

An average of a student's grades, converted to a 4.0 scale (4.0 is an A, 3.0 is a B, and 2.0 is a C). Some schools use a 5.0 scale for the GPA.

Graduate Assistantship

There are two types of graduate assistantships: teaching assistantships (TA) and research assistantships (RA). TAs and RAs receive a full or partial tuition waiver and a small living stipend. TAs are required to perform teaching duties. RAs are required to perform research duties, not necessarily related to the student's thesis research.

Graduate or Professional Student

A student who: 1. Is enrolled in an institution of higher education and is pursuing a program or course above the baccalaureate level leading to a graduate degree; 2. Has a bachelor's degree and is enrolled in a program leading to a first professional degree; 3. Has completed the equivalent of at least three years of full-time study at an institution of higher education before entering his or her graduate degree program; and 4. Is not receiving Title IV student financial aid as an undergraduate student for the same period of enrollment.

Graduate Student

A student who is enrolled in a Masters or PhD program.

Graduated Repayment

A schedule where the monthly payments are smaller at the start of the repayment period and gradually become larger.

Graduated Repayment Plan

A repayment schedule under which the amount of the borrower's installment payment is scheduled to change (usually increasing) during the course of the repayment period. The Graduated Repayment Schedule cannot exceed 10 years, excluding in-school, grace, deferment, or forbearance periods. This repayment plan is available for federal loans only.

Graduation Date

The date on which the student ceases to be at least a half-time student, not the date of the commencement ceremony.

Grant

A type of financial aid based on financial need that the student does not have to repay.

Gross Income

Income before taxes, deductions and allowances have been subtracted.

GSL

Guaranteed Student Loan

Guarantee

A commitment by the guarantor to reimburse a lender or subsequent holder of an approved loan when the borrower fails to repay the loan due to the borrower's death, disability, default, or bankruptcy.

Guarantee Agency or Guarantor

State agencies responsible for approving student loans and insuring them against default. Guarantee agencies also oversee the student loan process and enforce federal and state rules regarding student loans.

Guarantee Fee

A small percentage of the loan that is paid to the guarantee agency to insure the loan against default. The insurance fee is usually 1% of the loan amount (and by law cannot exceed 3% of the loan amount).

Guarantee Fee/Insurance Premium

Fee paid to the guarantor by borrowers to offset the costs of collection and defaults. The fee is a percentage of the loan amount. The lender deducts the fee from the loan amount and remits it to the guarantor.

Guaranteed Student Loan (GSL)

(Now called the Stafford Loan.) A guaranteed loan is insured against default. In the case of guaranteed student loans, the federal government agrees to repay the loans in case of default. Each loan is charged a guarantee fee to cover the costs of defaulted loans.

Guarantor

A state or private nonprofit organization that agrees to reimburse the holder of a loan if the borrower does not honor his or her repayment obligation.

Guarantor (Guaranty Agency)

A state or private, non-profit organization that administers a student loan insurance (guarantee) program for either federal or private loans.

Guaranty Agency or Guarantor

The fee paid to the loan guarantor to insure against loan default. For federal loans, it is usually one percent of the loan amount.