Glossary definitions provided in part by the Jump$tart Coalition for Personal Financial Literacy.
Parent PLUS Loan: Federal loans for parents of dependent undergraduate students enrolled at least half time. Like Stafford loans, they're made through either the Direct Loan or the FFEL program. Parent PLUS loans are unsubsidized and the federal government sets the interest rate for the FFEL program and 7.9% for the Direct Loan program. For current interest rates visit our Parent PLUS loan page. To get a PLUS loan, you must qualify for credit. Parents may borrow up to the cost of attendance, minus any other financial aid received.
Pawnshop: An easy-access credit business that makes high-interest loans secured by personal property collateral, such as jewelry.
Payday loan: An easy-access credit business that makes high interest loans for the period of the borrower's pay cycle. This practice is illegal in some states.
Payment method: The means of settling a financial obligation, such as by cash, check, credit card, debit card, smart card, or stored value card.
Payroll Deduction : An amount an employer withholds from a paycheck. Mandatory deductions include various taxes. Voluntary deductions include loan payments, charitable contributions, and direct deposits into financial institution accounts.
Peer pressure: The influence that a social group has on an individual, based on the individual's desire for the group's approval.
Pell Grant: These make up the majority of federal student grants and are awarded based on need and your eligibility is determined by the results of your FAFSA. The maximum award for the 2007-2008 school year is $4,050. The Pell Grant can be used toward the cost of your undergraduate degree and some specific teaching certificates.
Pension Protection Act: A federal law that attempts to strengthen employees' retirement security by, among other things, allowing employers to automatically enroll employees in retirement savings plans.
Pensions: A sum of money paid regularly as a retirement benefit
Per Diem: The phrase is Latin for 'per day', and is often used when referring to daily employee expenses or reimbursements.