| AA |
An
associate of arts degree. Can be earned at most two-year
colleges. |
| AAS |
An
associate of applied science degree. Can be earned at some
two-year colleges. |
| Academic Year |
A
period of time schools use to measure a quantity of study.
For example, a school's academic year may consist of a fall
and spring semester, during which a student must complete
24 semester hours. Academic years vary from school to school,
and even from educational program to education program at
the same school. |
| Accrued Interest |
Interest
that accumulates on the unpaid principal balance of a loan.
|
| Achievement Tests |
Tests
required by some colleges to measure student achievement
in specific areas of study such as English, Math or Science.
|
| ACT |
A
test published by American College Testing to measure a
student's ability in math, verbal comprehension and problem
solving. Usually students take this test during their junior
or senior year of high school. |
| Adjusted Gross Income (AGI)
|
All
taxable income less IRS allowable adjustments to income.
This figure is from U.S. IRS tax forms. |
| Advanced Placement Test
|
Test
used to earn credit for college subjects studied in high
school. They are offered by the Educational Testing service
(ETS) in the spring. AP tests are scored on a scale from
1 to 5 (the best possible score). |
| Aid Package |
A
combination of financial aid (scholarships, grants, loans,
and/or work study) determined by the financial aid office
of a college or university. |
| Alternative mortgage products
|
7/23
and 5/25 mortgages--Mortgages with a one-time rate adjustment
after seven years and five years respectively |
| Amortization |
The
process of gradually repaying a loan over an extended period
of time through periodic installments of principal and interest.
|
| Annual Percentage Rate (APR)
|
The
cost of credit as a yearly rate. |
| Annual Percentage Rate (APR)
|
Interest
rate reflecting the first-year rate including certain points
and credit costs. |
| Annual Percentage Yield (APY)
|
Percentage,
required by Truth in Savings regulations to be disclosed
on interest-bearing deposit accounts, that reflects the
total interest to be received, based on an institution's
compounding method for a 365-day year. |
| Appraisal Fee |
The
charge for estimating the value of property offered as security.
|
| ARM, or "Adjustable Rate Mortgage"
|
Mortgage
in which the rate of interest is adjusted based on a standard
rate index. Most ARMs have a cap on how much the interest
rate may increase. |
| Asset |
Property
that can be used to repay debt, such as stocks and bonds
or a car. |
| Automated Teller Machines (ATMs)
|
Electronic
terminals located on bank premises or elsewhere, through
which customers of financial institutions may make deposits,
withdrawals, or other transactions as they would through
a bank teller. |
| Average Annual Yield |
The
average yield per year over the life of the investment,
assuming all principal and interest remain on deposit until
maturity. |
| Award Letter |
An
official document issued by a financial aid office listing
all the financial aid awarded to the student. The award
letter will include information about the cost of attendance
and terms and conditions for the financial aid.
|
