 |
 |
 |
|
|
 |
|
Getting Started University Costs Forms Grants and Loans Aid Award Stafford Loan Loan Repayment Contact Us Financial Aid Home |
Accrued Interest: Interest added to a loan before repayment of principal begins. Award letter: The total loan, scholarship or grant and employment amounts a student is awarded during an academic year and cost of education. Borrower: A student or parent who borrows. Capitalization: Interest that is computed and added to the principal to arrive at a new balance. Interest is now calculated on new balance. Consolidation: The borrower's option to combine federal loans by selling or transferring all loans to one holder when repayment begins. Default: The failure of a borrower to make a scheduled payment or to comply with other terms agreed upon. Defaults are recorded on a borrower's credit history. Deferment: The option to postpone repayment of a loan during specific periods of time in accordance with other provisions of the loan terms. Delinquency: Failure to make a loan payment or file a deferment form when it is due. Disclosure Statement: A statement reflecting the total cost of a loan (including interest and any charges) that the borrower will be responsible to pay. Forbearance: To permit the temporary cessation of payments (principal and/or interest), or allow an extension of time for making payments, or accepting smaller payments than were previously scheduled. Grace Period: The time after graduation or separation from an educational institution before the borrower must begin repaying a loan. Institutional Funds: Grant and loan funds that are controlled and awarded from Rush University endowments, contributions from alumni and other sources, and are awarded based on institutionally defined criteria. Insurance Fee: An amount used to insure the lender against loss in the event that the borrower defaults. The fee is taken by the guaranty agency from the loan proceeds. Need Analysis: The process of determining a student's expected family contribution from the assets and income of the student, parent(s) and spouse. Origination Fee: An amount used by the federal government to pay interest on the loan while the student is in school. The fee is taken by the lender from the loan proceeds. Prepayment: Making loan payments before they come due. This will decrease the amount of interest the borrower repays. Principal: The loan amount borrowed and the amount upon which interest accrues. Promissory Note: The legal document a student signs when receiving any type of educational loan which he/she promises to repay. The document lists the conditions and terms the student must agree upon when accepting loan funds. Secondary market: An organization which purchases educational loans from lenders. This allows lenders to replenish capital to fund new loans. Servicer: A company contracted by a lender to perform the administrative tasks that are associated with disbursement and collection of a loan. Simple Interest: Interest that is calculated on the original principal only. Subsidized: Interest is paid while in-school and deferment (depending on terms of the loan note), and the borrower does not repay. T-Bill Rate: The benchmark interest rate for the cost of money to lending institutions by the federal government. Title IV Funds: Federal financial aid programs including Federal Pell Grant, Federal Perkins Loan (formerly National Direct Student Loan), Federal Supplemental Educational Opportunity Grant, Federal College Work Study, Federal Subsidized Stafford Loan, Federal Unsubsidized Stafford Loans, and Parent Loans for Undergraduate Students. Unsubsidized: Interest accrues from the time of loan disbursement, and the borrower is responsible for paying the amount either while in-school or when the loan goes into repayment (as determined by the loan note). |
|
|
| |
