Academic Year
The period during which school is in session. The school year typically
runs from the beginning of June to April.
Accrual Date
The date at which interest charges begin to accrue (increase).
Amortization
A process of spreading out payments in installments over an extended period of time. The gradual reduction of a loan debt by periodic (usually, monthly) installment payments of principal and interest.
Asset
An asset is a tangible item of value, e.g. a house, real estate, stocks, bonds, mutual funds, etc.
Bachelor's Degree
A degree granted by a college/university after three or four years of undergraduate studies.
Borrower
The person who receives the loan from the bank/institution.
Capital Gain
Monetary gain received by a person, when he/she sells assets like real estate,
bonds, mutual funds, etc. It is usually the difference between the selling
price and the cost price of these assets.
Collateral
Collateral are assets like immovable property, pledged to secure a loan.
If the borrower defaults on the loan, the lender can seize the collateral.
For example, a home mortgage is usually secured against the house purchased
with the loan.
Default
A loan is said to be in default when the borrower fails to pay several regular
installments on time (i.e. payments overdue by 180 days) or otherwise fails
to meet the terms and conditions of the loan. If you default on a loan,
the bank/financial institution can take legal action to recover the money.
Deferment
Deferment occurs when a borrower is allowed to postpone repaying the loan.
Dependent
A child or any other person who depends on others for more than half of
their needs is called a dependent. For example, a child or a housewife is
dependent on the main earner of the house.
Disbursement
The date on which the bank/financial institution releases financial aid
or funds to the student or transfers to the student's account money for
payment.
Doctorate / Ph.D.
One of the several degrees granted by graduate schools/universities to a
student who has done research and has submitted a thesis on it.
Equity
Equity is the rupee value of one's ownership in a piece of property e.g.,
one's home equity is the current market value of the home less the mortgage's
remaining unpaid principal.
Expense Report
A detailed list of tuition fees, mess charges, books and other instruments'
costs, and transportation expenses that will be incurred by the student.
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