Satisfactory Academic Progress: A policy determined by schools, in conjunction with federal guidelines and regulations. This policy sets the level of academic progress required of a student by the Higher Education Act of 1965, to receive or to continue receiving financial aid, including loans.

Secondary Market: Secondary markets buy student loans from lenders. When this transaction takes place, the secondary market becomes the holder of the loan instead of the original lender. The holder of the loan owns the right and title of the promissory note until the loan has been paid in full. One reason lenders choose to sell their loans is to free up funds to make additional student loans.

Servicer: The servicer is an organization hired by a lender or secondary market to provide day to day processing functions for the student loan program. Loan servicing includes disbursing loan funds, monitoring loans while borrowers are in school, collecting payments, and assisting borrowers during repayment of their loans.

STAF: An abbreviation for the Federal Subsidized Stafford loan used in the Loan Type field of the Loan Detail screen of PPSLC's Online Account Access.

Stafford Loans: Stafford loans are federal educational loans for undergraduate and graduate students. The interest is either subsidized or unsubsidized, and is a fixed rate of 6.8%. Dependent undergraduate students can borrow up to $23,000, independent undergraduates can borrow up to $46,000, and graduate students can borrow up to $138,500, including any undergraduate Stafford loans. Borrowers are charged an origination fee and a federal default fee (some guarantors waive the federal default fee), which is deducted from the loan before it is disbursed.

STAU: An abbreviation for the Federal Unsubsidized Stafford loan used in the Loan Type field of the Loan Detail screen of PPSLC's Online Account Access.

Subsidized: The government pays the interest on subsidized Stafford Loans while the borrower is in school, during grace periods, and during periods of deferment. Subsidized loans are based on financial need (see Expected Family Contribution), and the following maximum limits apply: undergraduates, $23,000; graduates, $65,000.

Unsubsidized: Unlike subsidized loans, the government does not pay the interest on unsubsidized loans. Borrowers may use unsubsidized loans to replace the expected family contribution. Loan limits for Stafford Loans are as follows: dependent undergraduates, $23,000; independent undergraduates, $46,000; graduates $138,000. These limits include subsidized loan limits. See Stafford Loans or Parent Loans for Undergraduate Students.