APR (Annual Percentage Rate)

The total yearly cost of borrowing money, including interest and certain fees. APR helps you compare loan options more accurately.

Autopay

A convenient feature that automatically deducts your monthly loan payment from your bank account. Some lenders may offer a rate reduction for enrolling in automatic payments.

Cosigner

A parent, guardian, or other creditworthy individual who agrees to share responsibility for repaying a student loan if the borrower cannot.

Credit Score

A number that reflects your credit history and financial behavior. Credit scores may impact loan approval and interest rates. Building good credit early can help you qualify for better borrowing options in the future.

Deferment

A temporary pause on student loan payments that may be available while you’re enrolled in school or experiencing certain financial hardships. Depending on the loan type, interest may continue to accrue during this period.

FAFSA®

The Free Application for Federal Student Aid (FAFSA®) is often the first step in paying for college. Completing the FAFSA helps determine eligibility for federal grants, scholarships, work-study programs, and student loans.

Complete the FAFSA.

Fixed Interest Rate

An interest rate that remains the same throughout the life of the loan, making monthly payments more predictable.

Grace Period

The period after graduation, leaving school, or dropping below half-time enrollment before loan repayment begins. This gives borrowers time to transition into the workforce before payments start.

Interest

The cost of borrowing money, expressed as a percentage of the loan balance.

In-School Deferment

A period during which payments may not be required while the borrower remains enrolled at least half-time.

Principal

The original amount borrowed before interest is added.

Private Student Loan

A loan offered through a private lender to help cover education expenses after scholarships, grants, and federal aid have been applied. Learn more about COPFCU’s student loan options.

Repayment Term

The length of time you have to repay your loan. Longer repayment terms may lower monthly payments but can increase the total interest paid over time.

Refinance

Replacing one or more existing student loans with a new loan, often to secure a lower interest rate, lower monthly payment, or simplify repayment.

Variable Interest Rate

An interest rate that may increase or decrease over time based on market conditions. Variable rates may start lower than fixed rates but can change during repayment.