Glossary definitions provided in part by the Jump$tart Coalition for Personal Financial Literacy.
Garnishment: A court-sanctioned procedure that sets aside a portion of an employee's wages to pay a financial obligation.
Government Transfer Payments : Payments by governments, such as social security, veterans benefits, and welfare to people who do not supply current goods, services, or labor in exchange for these payments.
Grace Period : A time during which a borrower can pay the full balance of credit due and not incur finance charges or pay an insurance premium without penalty.
Graduate PLUS Loan: Federal loans for graduate students. Like Stafford loans, they're made through either the Direct Loan or the FFEL program. PLUS loans are unsubsidized and the federal government sets the interest rate for the FFEL program. For current interest rates visit our Graduate PLUS loan page. In the Direct Loan program the interest rate is set at 7.9%. To get a Graduate PLUS loan, you must first take your maximum Stafford eligibility and must also qualify for credit. Graduate students may borrow up to the cost of attendance, minus any other financial aid received.
Grant: Awarded based on need or merit, grants do not need to be repaid. Grants come from federal and state governments, colleges and even private companies or organizations.
Gross Pay: Wages or salary before deductions for taxes and other purposes.
Guarantee Agency: An agency that insure student loans against default. If the borrower defaults, dies or becomes totally and permanently disabled, the guarantee agency reimburses the lender for the balance remaining on the loan.
Guarantee Fee: A fee charged for federally backed student loans. Also normally deducted from the gross loan proceeds and paid on your behalf by your lender to the guarantor.
Guaranteed Renewable: An insurance policy feature that obligates the insurer to continue coverage as long as premiums are paid on the policy.
Identification: Information that tells others who you are