Glossary of Terms

Accreditation
Accreditation confirms that a college or career school meets certain minimum academic standards, as defined by an accrediting body recognized by th...
Mon, 15 Feb, 2016 at 7:56 AM
Adjusted Gross Income (AGI)
Your adjusted gross income (AGI) is your or your family's wages, salaries, interest, dividends, etc., minus certain deductions from income as re...
Fri, 12 Feb, 2016 at 10:02 AM
Administrative Wage Garnishment / Wage Garnishment
Administrative wage garnishment allows the federal government or your guaranty agency to have your employer withhold a portion of your earnings to ...
Mon, 15 Feb, 2016 at 7:57 AM
Capitalization / Capitalized Interest
Capitalization is the addition of unpaid interest to the principal balance of a loan. When interest is not paid as it accrues during periods of non-paym...
Mon, 15 Feb, 2016 at 11:46 AM
Collections Costs
Collections costs are a possible consequence of defaulting on a student loan. These are expenses charged on defaulted federal student loans that are added t...
Mon, 15 Feb, 2016 at 11:51 AM
Consolidation
Consolidation is the process of combining one or more loans into a single new loan. There are both advantages and disadvantages to consolidation, and you sh...
Mon, 15 Feb, 2016 at 12:35 PM
Default / In Default / Defaulted Loan
Default is the failure to repay a loan as agreed. In most cases, a delinquent federal student loan is considered to be in default when it is 270 or more day...
Mon, 15 Feb, 2016 at 8:11 AM
Deferment
A deferment is a postponement of loan repayment that is allowed under certain conditions. During deferment, interest does not accrue on Direct Subs...
Mon, 15 Feb, 2016 at 11:50 AM
Delinquency / Delinquent Loan
Past due student loans are considered delinquent, even if only by one payment. A loan will remain in delinquency until the borrower makes up any missing pa...
Mon, 15 Feb, 2016 at 8:14 AM
Direct Consolidation Loan
A Direct Consolidation Loan is a federal loan made by the U.S. Department of Education (ED) that allows you to combine one or more federal student loans int...
Mon, 15 Feb, 2016 at 11:55 AM