Help - Glossary
The following glossary listing contains definitions/descriptions of terms that are related to Federal student aid Title IV programs and/or acronyms..
The terms are listed according to alphabetical order. You can select the All link to view a listing of all of the glossary terms, or you may select the letter equal to the first letter of the term.
Glossary
Late Fee
A fee that may be assessed if a scheduled payment is not made by the due date.Leveraging Educational Assistance Partnership (LEAP)
Formerly known as State Student Incentive Grant (SSIG), this is a state-run financial aid program for residents of the state. The states receive matching funds from the federal government to help fund the program.Leave of Absence
A break in enrollment, not including semester or spring break(s), requested by the student and sanctioned by the school. A student on an approved leave of absence is not a withdrawal.Ledger
A book of accounts. Every financial transaction must be assigned as either a debit or credit to an account. Separate ledgers must be maintained for each FSA program.Lender
A financial institution that provides funds to a borrower.Letter of Credit
An instrument issued by a bank or other financial institution that serves the purpose of securing liquid funds against potential loss to the secured party. ED may require a school to post a letter of credit because the school has been late returning Title IV funds, is in a weakened financial condition or in order to secure a waiver of the annual audit requirement.Level of Expenditure (LOE)
The total amount of Federal Perkins Loan funds a school is allowed to use to make loans to students and to pay administrative and collection costs in a given award year.Liquidation Period
Liquidation is the period immediately following the end of the performance period. During liquidation, no new expenditures may be made on an award, but payment requests and adjustments may still be processed for expenditures incurred during the performance period.Loan
An advance of funds guaranteed by a signed promissory note in which the recipient of the funds promises to repay a specified amount under prescribed conditions. A financial source that is available to students and their parents through student loan programs with varying interest rates and repayment provisions to supplement the family's financial resources, scholarships, and grants.Loan Balance
The total unpaid amount of a specific loan. This sum includes outstanding principal, capitalized interest, accrued interest, late charges, and any miscellaneous fees such as returned check fees.Loan Disclosure Statement
A statement sent to a loan borrower by the lender before or at the time a loan is disbursed, as well as before the start of the repayment period. The purpose of the disclosure statement is to provide the borrower with thorough and accurate information about the loan terms and the consequences of default.Loan Payoff Calculator
Online feature that displays how much a borrower would save by paying off his or her loan immediately.Loan Period
The period of enrollment for which a loan application is certified. Also known as period of enrollment.
