glossary
Easy To Understand Glossary of Loan Terms (Loan Terms Part 6)
Thu, 04/23/2009 - 03:13 | by kcblank67Satisfactory 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.
Easy To Understand Glossary of Loan Terms (Loan Terms Part 5)
Thu, 04/23/2009 - 03:09 | by kcblank67Original Loan Amount: An information field on the Loan Detail screen of PPSLC's Online Account Access. This field shows the loan amount that was originally guaranteed by our guarantor (Texas Guaranteed Student Loan Corporation).
Origination Fee: A fee deducted from the principal loan before disbursement and paid to the federal government to offset the interest cost on Subsidized Stafford loans. PLUS loan borrowers are charged a 3% origination fee.
PLUS Loan: A PLUS loan is a federally insured loan which parents borrow on the behalf of a dependent (can still be deducted on taxes) undergraduate students.
The PLUS loan is not based on need. The applicant must be determined creditworthy based on Federal regulations and/or lender criteria.
Easy To Understand Glossary of Loan Terms (Loan Terms Part 4)
Tue, 04/07/2009 - 12:29 | by kcblank67Easy To Understand Glossary of Loan Terms
Loan Terms Part 4
Income-Sensitive Repayment: This repayment schedule is based on the borrower’s income. Payments must cover the interest which will accrue daily. In case of emergency this is a good option.
Note: Any day that you are not paying on your loan is another day that it increases in cost.
Independent Student: A student must meet one or more of the following criteria to determine eligibility (criteria established by the Higher Education Act of 1965):
Must be 24 years old on or before December 31 of award year and/or
Must be an orphan of the court and/or
Must be a veteran of the U.S military and/or
Must be a graduate or professional student and/or
Must be married and/or
Easy To Understand Glossary of Loan Terms (Loan Terms Part 3)
Wed, 04/01/2009 - 16:09 | by kcblank67FAFSA: The Free Application for Federal Student Aid is the application students use to apply for grants, work-study funds and loans. Some schools also use this application for scholarship qualifications or use additional forms.
Federal Family Educational Loan Program (FFELP): The FFELP includes subsidized Stafford Loans, unsubsidized Stafford Loans, and Parent Loans for Undergraduate Students (PLUS). Funds for these loans are provided by private lenders. The loans are guaranteed by guarantors and reinsured by the federal government ( this does not mean you don‘t have to pay them back only that the school is guaranteed payment). The student is the borrower of Stafford Loans, and the parent is the borrower (on behalf of the student) of PLUS loans.
Easy To Understand Glossary of Loan Terms (Loan Terms Part 2)
Mon, 03/23/2009 - 02:36 | by kcblank67Default: A loan that is 270 days or more delinquent is considered to be in default. A default loan will affect the borrowers credit. Which can lead to a deficient credit line, garnishment of wages, and retaining of tax returns.
Delinquent: A borrower who fails to make a loan payment on time is considered to be delinquent(this is not the same as default). Lenders are required to follow due diligence (see definition below) procedures when payments are late. Meaning any loan that is 59 days or less delinquent is reported to credit bureaus as current. Any loan that is 60 or more days delinquent is reported to credit bureaus as delinquent. Loans that are 270 days or more delinquent are considered to be in default.
Loan Terms You Need to Know Part I
Wed, 03/11/2009 - 12:17 | by kcblank67Academic Year: A period of at least 30 weeks (1 semester) of instructional time beginning the first day of classes and ending on the last day of classes usually with examinations. During this time a full-time student is expected to complete at least 24 semester hours (depending on the institutional regulations) equal to 8 classes of 3 credit hours, 36 quarter hours or 90 clock hours.
Automatic Draft (or Direct Repay): The borrower authorizes automatic transfer of funds from checking or savings account to make monthly loan payments.
