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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: A summary of all scholarship, grant, loan and work assistance being offered to a student. Students must accept or reject any pending assistance each year before that assistance can be applied to their account. Borrower: A student (or parent) who takes out a loan that must be repaid. 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 for nine consecutive months. 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. Interest on subsidized loans is waived during periods of authorized deferment. Delinquency: Failure to make a loan payment or file a deferment/forbearance 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: The temporary cessation of payments (principal and/or interest) or lessening of payments for a specific period of time. Grace Period: A specific period of time following graduation or when a student drops below at least half-time status during which no payment is due on an educational loan. Repayment begins after the grace period ends. 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. Loan Fee: An amount used to insure the lender against loss in the event that the borrower defaults. The fee is taken by the lender/guaranty agency from the loan proceeds before the funds arrive at Rush. Need Analysis: The process of determining a student's expected family contribution from the assets and income of the student, parent(s) and spouse. Prepayment: Making loan payments before they come due. This will decrease the amount of interest the borrower repays. Typically, there is no prepayment penalty on any educational loan. 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, Federal Graduate PLUS 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). |
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