| Parent Loans for Undergraduate
Students (PLUS) |
Federally-insured loans for
parents of dependent students. |
| Parent's Contribution (PC) |
Amount parents can be expected
to contribute each year to the cost of their student's education
as determined by the Federal Methodology. |
| Pell Grant Program |
The largest federal grant
program. Eligibility and award amounts are determined by
the college based on established federal guidelines. |
| Period of Enrollment |
The period for which aid is
made as determined by the school. A period of enrollment
coincides with an academic term such as the academic year,
semester, trimester, or quarter, and starts on the day classes
begin. |
| Perkins loans |
Federally-insured loans funded
by the federal government and awarded by the school. The
loans feature a low interest rate and are repayable over
an extended period. |
| Point-of-Sale (POS) |
A method by which consumers
can pay for purchases by having their deposit accounts debited
electronically without the use of checks. |
| Points and Origination Fees |
Points are finance charges
paid at the beginning of a mortgage in addition to monthly
interest. One point equals one percent of the loan amount.
An origination fee covers the lender's work in preparing
your mortgage loan. |
| PortSS system |
Sallie Mae's microcomputer-based
loan origination software. |
| Postsecondary |
This term means "after high
school" and refers to all programs for high school graduates,
including programs at two and four-year colleges, and vocational
& technical schools. |
| Prepaid Tuition Plan |
A college savings plan that
is guaranteed to rise in value at the same rate as college
tuition. For example, if a family purchases shares that
are worth half a year's tuition at a state college, they
will always be worth half a year's tuition, even 10 years
later when tuition rates will have doubled. |
| Prepayment |
Paying off all or part of
a loan before it is due. |
| Principal Balance |
Amount borrowed, which may
increase as a result of interest capitalization, and the
amount on which interest is calculated. |
| Private Loans |
Private loans provide supplemental
funding when other financial aid does not cover costs. These
loans (not sponsored by government agencies) are offered
by banks or other financial institutions and schools to
parents and students. |
| PROFILE |
(CSS/Financial Aid PROFILETM)
A customized financial aid application form required at
certain colleges, which collects additional financial information
to determine eligibility for institutional aid. |
| Promissory Note |
Contract between a borrower
and a lender that includes all the terms and conditions
under which the borrower promises to repay the loan. |
| Proprietary School |
Postsecondary schools that
are private and are legally permitted to make a profit.
Most proprietary schools offer technical and vocational
courses. |
| PSAT/NMSQT |
The Preliminary Scholastic
Assessment Test/National Merit Scholastic Qualifying Test,
which helps prepare students for the SAT and is part of
the qualifying criteria for the National Merit Scholarship
Program. A student usually takes this test as a high school
sophomore or early in the junior year. |
| Pts, or "points" |
An interest fee charged by
the lender. One point is equal to one percent of the mortgage.
The use of points allows the lender to raise its yield above
the apparent interest rate. |
| Punitive Damages |
Damages awarded by a court
above actual damages as punishment for a violation of law.
|
