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Resources

There are many financial literacy resources available to you. The best place to start is with our partner, iGrad. iGrad’s services are further explained in the iGrad section of our website.

Below are external financial literacy resources that we recommend:

Financial Glossary

Below is a glossary of financial terms that will assist you during your time at Temple or after graduation.

  • Accrue: To accumulate interest on a loan.
  • Annual Percentage Rate (APR): Percentage of a loan that is added as interest annually. Loan agencies use APR to calculate and clarify how much total money a borrower will need to repay to pay off his or her loan.
  • Capitalized Interest (Capitalization): Accrued and unpaid interest and fees that are added to the balance of a loan.
  • Cosigner: A second signer to a written agreement who agrees to take on the responsibilities of the contract if the original signer fails to do so. A cosigner must be financially secure, so as to guarantee that they will receive proper repayment on loans no matter what. Those with bad credit or a history of default are likely to need a cosigner to participate in financial agreements.
  • Credit Score (most commonly a FICO score): This is a three-digit number that summarizes your creditworthiness. Ranging from 300 (lowest) to 850 (highest), your credit score indicates to lenders how likely you are to pay back loans. Your credit score can impact your ability to borrow money, rent an apartment, or even get a job.
  • Default: Default occurs when someone fails to pay back a loan on time. Defaulting carries different penalties based on the defaulter’s loan servicer and the details of the default itself. Defaulting on a loan can make it difficult to take out future loans, so it is important to take all necessary steps to avoid default.
  • Deferment: Deferment allows one to delay starting the loan repayment process. To qualify for deferment, one must contact either the school’s financial aid office, the loan servicer, or both, depending on the type of loan.
  • Delinquency: This is what occurs when you fail to make a payment on a loan. Delinquency can result in late fees, default, lower credit scores, and possible legal issues.
  • Entrance/Exit Counseling: Any undergraduate or graduate student wanting to obtain a Direct Loan must first complete an online entrance loan counseling module. Similarly, the student must agree to, and then complete an exit counseling module once he or she graduates, drops below half-time enrollment, or quits school for any reason. These sessions help to inform students of the financial responsibilities that accompany student loans, as well as teach them financial best practices.
  • The Family Educational Rights and Privacy Act (FERPA): A federal law that protects the privacy of student records and prohibits university staff from disclosing certain information to parents or other individuals without the permission of the student.
  • Forbearance: Also known as “deferment,” forbearance is a way for graduates to reduce or postpone paying back their federal student loans. To do this, contact your loan servicer and ensure that leniency has been granted before missing any due payments. Forbearance usually lasts for six months or less and most loans will still accrue interest during this time.
  • Gift Aid: Financial aid, such as grants and scholarships, which does not need to be repaid.
  • Grace Period: Any extra time granted after a loan payment is due, but before any penalties are enacted. Credit card payments typically have a grace periods. For student loans, a grace period generally occurs after a student graduates, leaves school, or drops below half-time enrollment. Borrowers do not make payments during grace periods; however, be sure to check if interest will still accrue during this time.
  • Gross Income: The total earned before taxes and fees are deducted; this is generally the same as one’s salary, or combined salaries if you hold more than one job.
  • Income Based Repayment Plan (IBR): A federal student loan repayment plan that offers lower monthly payments for those whose income is low relative to their student debt load. This type of plan is meant to make monthly payments more manageable for borrowers.
  • Income-Contingent Repayment Plan (ICR): A federal student loan repayment plan based on your adjusted gross income, family size, and total amount of Direct Loans. If you do not qualify for the Income-Based Repayment Plan or Pay as Your Earn Plan, this may be a good alternative to loan repayment.
  • Interest: Money paid for money lent; or the cost of borrowing. To fully pay back a loan, one must repay the original amount he or she borrowed, as well as pay for any interest collected via the loan’s interest rate. Interest can either be calculated as compound interest or fixed interest; compound interest will accumulate fees faster.
  • Interest Rate: The percentage charged to borrow money.
  • Loan Consolidation: This is a process that involves combining multiple loans or debts into one singular loan. Loan consolidation is beneficial for those who have trouble keeping track of due dates, as you can combine multiple monthly payments into a single bill. There are pros and cons to loan consolidation, so be sure to weigh all options before moving forward with the process.
  • Loan Servicer: A loan servicer is any group responsible for receiving loan repayments on behalf of a bank or other financial institution that loans money. A loan servicer’s job is to get back money, but also to work with those who owe money to make paying back a loan as easy as possible. Loan servicers can help those in financial difficulty via services such as loan consolidation or by granting forbearance. However, if a borrower is unable or unwilling to fulfill their financial obligations, loan servicers can enact financial fees, use a collection agency, or cause the loan to default.
  • Master Promissory Note (MPN): A promissory note is the legal agreement a student signs with a lender accepting student loan funds. The MPN states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy and cancellations.
  • Outside Resource: Any type of financial assistance that you are receiving from a donor outside of the University. Outside scholarships, prepaid tuition plans, and VA educational benefits are examples of outside resources.
  • Pay as You Earn Plan: A student loan repayment plan with monthly repayments capped at 10 percent of one’s discretionary income. This plan requires showing proof of some sort of financial hardship.
  • Prepayment: Paying back a loan in part or whole before the borrower is contractually required to do so. Be aware: some lenders may require you to hold the loan for a certain amount of time before repayment and may have prepayments penalties. Check with your loan servicer before paying early to avoid any fees.
  • Principal: An expression of the amount of money owed to a loan servicer. Principal can either be presented as the original amount borrowed or, more commonly, the amount of the original loan still left unpaid. Often, accumulated interest on a loan is not included in the principal.
  • Withholding: Income tax withheld by an employer; this is a pay-as-you-go tax.