Glossary
There are 284 entries in this glossary.All
| Term | Definition |
|---|---|
| Consolidation |
A consolidation loan combines several student loans into one bigger loan from a single lender. The consolidation loan is similar to a refinance and is used to pay off the balances on the other loans. The primary intention is to replace multiple loans with a single "consolidated" loan to simplify repayment. |
| Cosigner |
A cosigner on a loan is a co-borrower and is obligated to repay the debt if the primary borrower defaults on the debt. Repayment activity is reported on both the borrower's and cosigner's credit histories. |
| Credit Score |
Credit Score is a number given to represent your “creditworthiness”. Numerical weights are placed on different aspects of your credit report and a mathematical formula or computation is used to arrive at a final score. |
| Default |
The failure of the borrower (or endorser, if any) to make payments when due or to meet other terms of the Promissory Note. By law, default occurs at day 270 of delinquency for FFELP Loans, Federal Stafford, PLUS, and Consolidation loans. |
| Deferment |
Happens when a borrower is allowed to postpone repaying the loan. If you have a subsidized loan, the federal government pays the interest charges during the deferment period. If you have an unsubsidized loan, you are responsible for the interest that accrues during the deferment period. |