Glossary
There are 284 entries in this glossary.All
| Term | Definition |
|---|---|
| Identity |
A distinguishing character or personality of a consumer. Also, includes any unique information about a consumer such as a social security number. |
| Income-Base-Repayment |
Under an income-based-repayment schedule, the size of the monthly payments depends on the income earned by the borrower. As the borrower's income increases, so do the payments. The income-based repayment plan is not available for PLUS Loans. Income-based repayment is available in both the FFEL and Direct Loan programs. Monthly payments are capped at 15% of discretionary income, where discretionary income is defined as the amount by which income exceeds 150% of the poverty line. |
| Interest |
The interest on a loan is a fee charged periodically in exchange for the use of a lender's money. It is paid in addition to repaying the amount borrowed. Interest is usually calculated as a percentage of the outstanding principal balance of the loan. The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan. |
| Lender |
A financial institution, agency, or school that provides the money to make a loan to a borrower. |
| Loan Disclosure Statement |
A statement sent to a loan borrower by the lender before or at the time it disburses a loan, as well as before the start of the repayment period. The purpose of the disclosure is to provide the borrower with thorough and accurate information about the loan terms and the consequences of default. |