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Delinquent
Delinquency status indicates that
borrowers’ accounts have become
past due on payment. This occurs
when borrowers’ loan payments are
not received by the due dates.
Accounts remain delinquent until
borrowers bring their accounts
current with payments, deferments,
or forbearances. If borrowers’
accounts have become delinquent
and the borrowers are unable to
make payments, deferments or
forbearances should be considered.
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Dependent student
(dependent undergraduate student):
A student who does not meet any of the
criteria for an independent student. An
independent student is at least 24 years
old, married, a graduate or professional
student, a veteran, a member of the armed
forces, an orphan, a ward of the court, or
someone with legal dependents other than a
spouse.
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Direct Loan
Servicing Center:
The U.S. Department of Education's
agent contracted to collect Direct
Loans and handle deferments,
forbearances, and repayment
options.
Direct PLUS
Loan (PLUS Loan):
Direct PLUS Loans are
unsubsidized loans available to
parents of dependent students, and
to students enrolled in graduate
or professional programs. These
loans are available regardless of
financial need and the amount of
eligibility depends on the total
cost of education.
Disbursement
Payment of loan proceeds by
the lender. During consolidation,
this term refers to sending
payoffs to the loan holders of the
underlying loans being
consolidated.
Disclosure
Statement
A statement showing a
borrower's loan term, payment
schedules and monthly payment
amount for their loans.
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Eligible
Loans:
The following federal
education loans are eligible for
consolidation into a Direct
Consolidation Loan:
Direct Subsidized and Unsubsidized
Loans
Federal Subsidized and
Unsubsidized Stafford Loans
Direct PLUS Loans and Federal PLUS
Loans
Direct Consolidation Loans and
Federal Consolidation Loans
Guaranteed Student Loans
Federal Insured Student Loans
Supplemental Loans for Students
Auxiliary Loans to Assist Students
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Federal Perkins Loans |
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National Direct Student Loans
National Defense Student Loans
Health Education Assistance Loans
Health Professions Student Loans
Loans for Disadvantaged Students
Nursing Student Loans |
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Federal Family
Education Loan Program(FFEL Program):
A Federal program authorized under Title IV
of the Higher Education Act that provides
loans to eligible student and parent
borrowers. The program consists of
Subsidized and Unsubsidized Federal Stafford
Loans, Federal PLUS Loans, and Subsidized
and Unsubsidized Federal Consolidation
Loans.
Funds are provided by private lenders such
as banks, credit unions, and other private
financial institutions. The loans are backed
by the Federal government.
Forbearance
A period during which your monthly loan
payments are temporarily suspended or
reduced. You may qualify for forbearance if
you are willing but unable to make loan
payments due to certain types of financial
hardships.
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Grace Period
After borrowers graduate, leave
school, or drop below half-time
enrollment, loans that were made
for that period of study have
several months before payments are
due. This period is called the
"grace period."
Grace periods extend from 6 to 12
months after borrowers leave
school:
Most FFEL and Direct Loans have
6-month grace periods.
Perkins Loans have grace periods
of either 6 or 9 months, depending
on when the loan was first
disbursed. Health professions
loans have grace periods of 9-12
months.
During the grace period, no
interest accrues on Subsidized
loans. Interest accrues on
Unsubsidized loans during grace
periods, and this interest is
capitalized when borrowers’ loans
enter repayment.
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Borrower's repayment periods
begins the day after the grace
period ends. First payments will
be due within 60 days after the
repayment period begins.
Each loan has only one grace
period. If borrowers return to
school after the grace periods has
expired, the borrowers’ loans
qualify for deferment while
borrowers are enrolled but return
to repayment after borrowers leave
school. There is no additional
grace period.
Grace Period
End Date
The date on which a grace period
for a loan is expected to end.
When applying for a Direct
Consolidation Loan, a grace period
end date must be less than nine
(9) months from the date you
apply, or your Consolidation
application cannot be accepted.
Half-time
A student is considered half-time
when carrying at least one half
the academic workload of a
full-time student as determined by
the school. |
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Health Professions
Loans
Loan programs authorized by the Public
Health Services Act and administered by the
U.S. Department of Health and Human Services
(HHS) rather than the U.S. Department of
Education. Although health professions loans
can be included in consolidation loans,
borrowers should be aware of the advantages
and disadvantages of consolidating these
loan types because of the differences
between the programs. See the benefits
comparison chart for details.
HHS loans include:
Health Professions Student Loans (HPSL)
Loans for Disadvantaged Students (LDS)
Health Education Assistance Loans (HEAL)
Nursing Student Loans (NSL)
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Holder (also holder of
loans/loan holder)
A holder (loan holder) is an entity that
holds a loan promissory note and has the
right to collect from the borrower.
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