Glossary of Terms
The Direct Loan program is the federal program that provides loans to eligible student and parent borrowers under Title IV of the Higher Education Act. Fun...
Mon, 15 Feb, 2016 at 7:48 AM
An Income Based Repayment (IBR) plan is a repayment plan with monthly payments that are limited to 15% (or 10% if you are a new borrower) of your discretion...
Mon, 15 Feb, 2016 at 11:15 AM
The Income-Contingent Repayment (ICR) plan is a repayment plan where the borrower's monthly payments are recalculated each year on the basis of the b...
Mon, 15 Feb, 2016 at 11:35 AM
Accrual is the process whereby interest accumulates, or adds up, on your loan. When we speak of "interest accruing on your loan", we mean th...
Mon, 15 Feb, 2016 at 11:45 AM
Interest is a loan expense charged by a lender and paid by the borrower for the use of borrowed money. The expense is calculated as a percentage of the ...
Mon, 15 Feb, 2016 at 11:44 AM
The status of a loan describes the present state of your Subsidized, Unsubsidized, PLUS, or Consolidation loan(s). Some of the most common student loan...
Mon, 15 Feb, 2016 at 1:01 PM
A variable interest rate is a rate of interest charged on a loan that changes annually because it is based on an underlying benchmark interest rate or ...
Mon, 15 Feb, 2016 at 12:30 PM
A fixed interest rate is a rate of interest that doesn't fluctuate during the fixed rate period of the loan. This allows the borrower...
Mon, 15 Feb, 2016 at 12:28 PM
Repayment is the act of making payments on a loan. The "repayment period" is the period during which payments are required to be made.
Mon, 15 Feb, 2016 at 12:33 PM
Guaranty agencies are state or private nonprofit agencies that administer loans made under the Federal Family Education Loan (FFEL) program. The agencies ...
Mon, 15 Feb, 2016 at 12:46 PM