Glossary Of Student Loan Terms
The helpful gloassary for you to understand some student loan terms.
1. Disbursemen is the paying out of then money from a grant, scholarship, as well as other source.
2. Emergency loans are temporary, no- or low-interest loan aid awarded to students to assist them to cover their expenses until their financial help is received; typically granted at once and without any question.
3. Grace period is a time period after your college graduation generally 6 to 12 months in that a student doesn't have to start repaying a student loan.
4. Interest is a charge for the borrowed amount of money; often a postion of the amount that is borrowed.
5. Student loan consolidation is a loan repayment choice for students plus more than a single outstanding loan; it reduces monthly payments plus makes the student loan repayment process much simpler.
6. Loan default is the failure to pay a student loan back in accordance with the terms that are agreed to in a promissory note; and a lender can take legal action and get money back.
7. Loan deferment is a postponement of a student loans repayment; a lot of federal loan programs provide a deferment program.
8. Loan delinquency is the failure to make student loan payments while they are due; and extended delinquency can cause loan default.
9. Loan forgiveness is the demand for payment of the student loan balance. It is waived due to extenuating circumstances on a students part, for example, financial hardship or, in certain situations, in compensation for the community service.
10. Principal - regarding student loans, it represents the sum of money that is borrowed, not comprising any interest charges.
11. Subsidized student loan is a loan, which doesn't accrue interest unless the recipient gives up school.
12. Unsubsidized student loan is a loan, which accrues interest when a student is in school.
by: Joee