Essential terms
- APR
- Annual percentage rate: a standardized expression of borrowing cost that can include certain fees as well as interest.
- Capitalization
- Unpaid interest is added to principal, so future interest may be charged on a larger balance.
- Cosigner
- A person who shares legal responsibility for repaying a loan and whose credit can be affected.
- Deferment
- A qualifying temporary payment pause. Interest treatment and eligibility depend on the loan.
- FAFSA
- The Free Application for Federal Student Aid, used to determine eligibility for federal and some school or state aid.
- Fixed rate
- An interest rate that does not change over the stated loan term.
- Forbearance
- A temporary reduction or pause in payments, generally with interest continuing to accrue.
- Origination fee
- A charge associated with making the loan, often deducted from proceeds or included in cost calculations.
- Prequalification
- An estimate based on preliminary information. It is not final approval or a guaranteed offer.
- Refinancing
- Replacing one or more loans with a new private loan carrying new terms and eligibility requirements.
- School certification
- The school verifies enrollment and the amount eligible to be disbursed under the loan.
- Variable rate
- An interest rate that can change with a stated benchmark, affecting payment and total cost.
Frequently asked questions
Is College Loan Finder a lender?
No. College Loan Finder is an educational comparison service and does not originate loans or make credit decisions.
Does using the comparison affect my credit?
No. College Loan Finder does not perform a credit check. A provider may request permission for a soft or hard inquiry in its own flow.
Should I complete the FAFSA before comparing private loans?
Generally, yes. FAFSA results help identify grants, work-study, school aid, and federal loans that should be reviewed before private gap financing.