Glossary of Student Loan Related Terms

Undergraduate Student

A student who is enrolled in a Bachelors program.

Unearned Income

Interest income, dividend income and capital gains.

United Student Aid Funds (USAF)

A national guarantor of federal loans.

United Student Aid Loan Disbursement Services

An origination agent of Nellie Mae federal loans.

United Student Aid Loan Services (USA LS)

A servicer of private and federal loans.

Unmet Need

In an ideal world, the financial aid office (FAO) would be able to provide each student with the full difference between their ability to pay and the cost of education. Due to budget constrains, the FAO may provide the student with less than the student's need ( as determined by the FAO). This gap is known as the unmet need.

Unsecured Loan

A loan not backed by collateral, representing a greater risk to the lender. The lender may require a co-signer on the loan to reduce their risk. If you default on the loan, the co-signer will e held responsible for repayment. Most educational loans are unsecured loans. In the case of federal student loans, the federal government guarantees repayment of the loans. Other examples of unsecured loans include credit card charges and personal lines of credit.

Unsubsidized Loan

A loan for which the government does not pay the interest. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed, even while the student is still in school. Students may avoid paying the interest while they are in school by capitalizing the interest, which increases the loan amount. Unsubsidized loans are not based on financial need and may be used to finance the family contribution. See also Subsidized Loan.

Unsubsidized Stafford

A long-term, low-interest loan designed to provide students who do not qualify for other financial aid, or who still need more money, with additional funds for college. The unsubsidized Federal Stafford Loan can be made in conjunction with a subsidized Federal Stafford Loan as long as the maximum annual or aggregate loan limits for subsidized Federal Stafford Loans have not been exceeded. Unsubsidized means the student is responsible for the interest on the loan amount while in school; however, payment can be postponed.

Untaxed Income

Contributions to IRAs, Keoghs, tax-sheltered annuities and 401k plans, as well as Worker's Compensation and welfare benefits.

US Department of Education (ED or USED)

Government agency that administers several federal student financial aid programs, including the Federal Pell Grant, Federal Work Study program,  Federal Perkins Loans, Federal Stafford Loans and Federal PLUS Loans.

US Department of Health and Human Services (HHS)

Government agency that administers several health education loan programs, including the HEAL, HPSL and NSL loan programs.