- Automated Payments: It can be set up with the lender and the bank to make payments automatically every month, towards repayment of your loan. These are known as Automated Payments.
- Bad Credit: If a person is in Bad Credit, it means that person has defaulted in the repayment of one or more of his loans.
- Credit Score: A Credit Score is an indicator that shows how credit worthy you are. Lenders make decisions like whether to lend money to you, how much to charge, etc. based on this Credit Score. When you make prompt payments, take few loans, etc, you add to your credit score. If you take too many loans or default on loans, your credit score reduces. A higher credit score indicates you are highly worthy of credit and vice versa.
- Consolidation: Consolidation is the act of combining all your loans with various lenders into one loan under one lender, with one rate of interest.
- Deferment: The act of postponing the Repayment of your loan is called as Deferment. This happens often in Student Loans. Student loan fall due once the period of schooling is over. But, not everyone lands on good jobs immediately. Thus, they are forced to request their lenders to defer their loans for a period of six to nine months after which they start repaying the same.
- Federal Student Loans: The Student Loan that are given by the government to the financially needy students is known as Federal Student Loans.
- FFELP (Federal Family Education Loan Program): This is a particular type of Federal Loan that can be availed by the student and /or his family to meet the cost of his education.
- Financial Need: Financial need is a term used to denote the ‘need for money’. To get Federal Loans, you have to prove your financial need.
- Federal Student Loan Consolidation: When consolidate all your Student Loan, if you do it under a Federal Lender, it is known as Federal Student Loan Consolidation.
- Forbearance: If a borrower does not make loan full or in part, temporarily, for a certain period of time, it is known as Forbearance.
The lender may excuse forbearance to relieve a borrower’s financial crunch or if he decides to go in for further full-time education.
- Grace Period: Every Loan Repayment carries a date with in which the payment is to be made. At times, a few more days after this due date is also given to make payment, with out being considered as a default. This period is known as Grace Period and those days are known as Grace Days.
- Loan Market: The sum of all the places where loans are issued and availed is known as a Loan Market.
- Loan Forgiveness: If the leader excuses your failure to repay a particular installment (s), then it is known as Loan Forgiveness.
- Lender Research: Before taking any loan, you should analysis the loan market, shop around and get quotes from various lenders. This is known as Lender Research.
- Multiple Lenders: Students need loan for not only fees and tuitions but also for food, books and boarding. Thus, they take loans from various lenders for the same and this gives rise to Multiple Lenders.
- Multiple Payments: While repaying Student Loan, if there are multiple lenders with different interest rates to whom payments have to be made, it leads to multiple payments.
- Poor Credit Record: If a person has too many loans to his name or has defaulted on one or more of his loans, he is said to have a Poor Credit Record.
- Private Student Loan Consolidation: If all Student Loan are consolidated with a Private Lender, then it is known as a Private Student Loan Consolidation.
- Private Student Loans: If any Student Loan is taken from a Private Lender, it is known as a Private Student Loan.
- Professional Consolidator: A person (either Federal or Private) who consolidates Student Loan and guide students and parents clearly about the same is known as a Professional Consolidator.
- Rate Reduction Plans: When you Consolidate Loan, you can take up a rate reduction plan. By this, the term of your Consolidation Loan is extended and this will reduce your interest rate. Sometimes monthly installments come down by even half or more by way of rate Reduction Plans.
- Single Leader: If a person borrows money from only one particular lender, then that lender is the Single Lender for this person.
- Single Payment:The Single Installment paid every month to a single leader is known as Single Payment.
- Student Loan Consolidation: When all the Student Loan of a person with various lenders are combined into one loan with one rate of interest, under one lender, it is known as Student Loan Consolidation.
- Student Loan Consolidation Rebate: When you Consolidate Student Loans, you may get a slightly reduced rate if you are in a financially needy situation. This reduction is known as Student Loan Consolidation Rebate.