These might be some of the questions you have as you start researching financial aid for college. Most students will need a student loan, so it's wise to know what all the terms mean and how they apply to you. Terms that are used in a definition but are defined in this section are indicated in blue.

• Borrower benefits - Think of these in terms of a price break you get when you buy something or a rebate you get after you buy it. A lender can charge an origination fee, while a guarantor can charge an insurance fee. Not all lenders and guarantors charge the same fees. These fees are deducted before you see the money, so the lower the fees, the more money you receive to pay for your education.

  Lenders may also give you breaks while you're in school. For example, your lender may deduct a certain percentage of the principal amount if you finish the semester or quarter for which you borrowed the funds.

  You can also get breaks when you start repaying your loan. Many lenders will charge you a lower interest rate if you follow certain criteria.

• Guarantor - This is like an insurance company. The guarantor has a contract with the lender to pay off a student loan under special circumstances.

• Insurance fee - It's just like car insurance, only it's not as expensive. The guarantor can charge you up to 1 percent of your loan as an insurance fee.

• Interest - This is the money you pay the lender for letting you use its money to pay your school costs. It's just like the interest you pay on your car loan, only it's generally lower.

• Lender - The lender is whoever loans you the money. It can be a bank, a nonprofit state corporation, a credit union, or some other financial institution.

• Origination fee - This helps cover the costs the lender has to pay for doing business with you. Lenders can charge up to a 3 percent origination fee.

• Principal - This is the actual amount you borrow before the origination fee and insurance fee are deducted. The interest you are charged will be based on the principal.