| A | B |
|---|
| Consolidate | To combine (a number of financial accounts or funds) into a single overall account or set of accounts |
| Cost of Attendance (COA) | Total amount it will cost you to go to school (includes tuition and fees as well as personal expenses). |
| Deferment period | Postponement of payment on a loan allowed under certain conditions and during which interest does not accrue |
| Expected Family Contribution (EFC) | An estimate of the parents' and/or student's ability to contribute to postsecondary expenses. In general, the lower the EFC, the higher the financial aid award from the college may be. |
| FAFSA | The common name for the Free Application for Federal Student Aid form prepared annually to determine eligibility for post‐secondary financial aid |
| Financial need | The difference between the cost of attending a particular school and the expected family contribution. |
| Forbearance | Ability to stop or reduce loan payments for up to 12 months while interest is accruing |
| Grant | A tax‐exempt financial aid that may be given for many purposes, not necessarily just for education |
| Grace Period | Period of time after a borrower graduates, leaves school or drops below halftime enrollment where they are not required to make certain federal loan payments |
| Loan default | Failure to pay a loan according to the agreed upon terms |
| Loan servicer | Company that collects payment on a loan |
| Net price | The cost of attendance minus grants and scholarships. |
| Personal Identification Number (PIN) | A four digit number used as an electronic signature |
| Scholarship | Money awarded to students that does not have to be repaid and is based on academic or other achievement to help pay for education expenses |
| Student Aid Report (SAR) | A report that summarizes responses made when completing the FAFSA form |
| Subsidized loan | A need‐based loan from the federal government, the interest of which is paid for by the U.S. Department of Education while the borrower is in school and during grace and deferment periods. |
| Unsubsidized loan | A non‐need‐based loan from the federal government the interest of which is paid for by the borrower |
| Work‐study | A federal program that provides part time employment opportunities for students with financial need, allowing them to earn money to help pay educational expenses. |
| Job outlook | The demand for a particular job when you are qualified and ready to enter the field |
| Debt‐to‐income ratio | A standard tool that calculates whether a borrower will have difficulty meeting his or her loan repayment obligations |
| Career pathway | A series of connected education and training programs that allow you to secure a job and then to advance within an industry or occupation |
| Backwards planning | A strategy in which you start with the end goal and plan backwards to determine the steps needed to get to that end goal |
| Remediation | Sequences of increasingly advanced courses designed to bring academically underprepared students to the academic skill level expected when entering higher education |
| Career | A lifetime journey of building and applying skills, knowledge, and experiences in paid employment positions |
| Career cluster | Grouping of occupations and industries based on the knowledge and skills required |
| Formal continuing education | Training for a specific set of new skills provided by experts in a particular field |
| Human capital | The skills, knowledge, and experiences possessed by an individual |
| Industry | Group of establishments (businesses) that produce similar products or provide similar services |
| Informal continuing education | Occurs through social interactions, networking, life’s experiences, and reading |
| Job | An activity through which an individual can earn money |
| Lifestyle | Your habits, attitudes, tastes, moral standards and the amount of goods and services that you consume |
| Occupation | Grouping of jobs that perform similar tasks |
| Standard of living | The level of material comfort as measured by the goods, services, and luxuries you are able to purchase |
| Transferable skills | Versatile skills that are applied to personal and professional roles |
| Cost of living | The average cost of basic necessities, such as housing and food |
| Employee benefits | Products or services provided by an employer that provide extra value beyond wages |
| Commission | A fee that a salesperson receives upon completion of a sale |
| Dependent | A person who relies on the taxpayer for financial support |
| Direct deposit | Wages are deposited directly into a depository institution account |
| Employee benefits | Employers may offer employee benefits in the form of products or services that add extra value for employees beyond earned wages |
| Employer contributions | The amount the employer has contributed to various employee benefits |
| Employment | Agreement between an employer and employee |
| Form W‐4 (Employee’s Withholding Allowance Certificate) | The form that determines the percentage of an employee’s pay that will be withheld for federal taxes |
| Gross Income | Amount of money earned before payroll taxes |
| Income tax | Taxes paid to federal, state and local governments on the amount of money earned |
| Medicare | A federal program whose main purpose is to help pay for health care for those over 65 |
| Net income | Amount of money left once all deductions have been taken from gross income |
| Paper paycheck | A check written to a worker in the amount of money earned |
| Payroll card | A reloadable debit card onto which a worker's pay is loaded |
| Payroll tax | Taxes withheld or paid on your behalf by your employer |
| Pay period | The regular schedule by which employers pay employees |
| Pay stub | Outlines the deductions made to wages |
| Salary | Fixed amount of money or compensation paid to an employee by an employer in return for work performed |
| Social Security | A federal government program that funds retirement accounts, financially supports citizens who have experienced profound disability, the premature death of a parent (if under the age of 18), or the premature death of a spouse in a family with children |
| Tax liability | Total tax bill |
| Unemployment insurance | A source of income for workers who have lost their jobs through no fault of their own |
| Workers’ compensation | A state‐sponsored system that pays monetary benefits to workers who become injured or disabled on the job |
