ACH: The Automatic Clearing House (ACH) handles the automatic electronic debit to a checking or savings account for loan repayment.
acceleration: The process that makes the entire principal balance, interest and other costs is due and payable immediately as a result of non-payment of the debt. This process usually occurs at the time a loan is placed with an external collection agency.
amounts past due: The amount of principal, interest, late fees from previous months that remain unpaid.
amortization: The period of time over which a loan is to be repaid, and the amount of each monthly payment.
autopay: A payment program that allows you to authorize automatic deductions from your checking or savings account to cover monthly Perkins loan payments.
borrower: The person responsible for repaying the loan who has signed and agreed to the terms of the promissory note.
browser: Short for Web Browser, a software application used to locate and display Web pages. The two most common browsers are Microsoft Internet Explorer and Netscape Navigator.
cancellation: The process of canceling a percentage of your loan for each year of public service such teaching in public institutions, Head Start, Peace Corp or ACTION service or service in the military in certain situations. Loans are also canceled in the case of a borrower's death, total permanent disability or some bankruptcy discharges.
children and youth with disabilities: For cancellation purposes special education includes teachers of children and youth from ages 3 through 21, inclusive, who require special education and related services because they have disabilities as defined in section 602(a) (1) of the Individuals with Disabilities Education Act. Section 602(a)(1) of the Act defines "handicapped children" as children who are mentally retarded, hard of hearing, deaf, speech or language impaired, visually handicapped, seriously emotionally disturbed, orthopedically impaired, or other health impaired children or children with specific learning disabilities who by reason thereof require special education and related services.
collection fees: The actual amount of fees charged by a collection agency for collecting a defaulted loan.
consolidation: The process of combining all of a borrower's federal student loans into one single loan.
currently cue: The scheduled monthly payment amount plus the amount past due, if applicable.
credit bureau reporting: Federal regulations require that all loans be reported to national credit bureaus from the time of disbursement until paid in full. All accounts are reported monthly.
deferment: Process in which payments of principal and interest on the loan are postponed for a period of time. Applicable only to NDSL/Perkins Loans and some long term institutional loans.
default: Default is defined as the failure of a borrower to make a loan payment when due or to comply with other terms of the promissory note or written repayment agreement. Default may also result from failure to submit deferment and/or cancellation requests on time.
due date: The date your student loan payment is due each month.
due diligence: The procedures for attempting to satisfactorily collect current and defaulted student loans.
early intervention services: For cancellation purposes early intervention services as defined in section 672(2) of the Individuals with Disabilities Education Act, are provided to infants and toddlers with disabilities.
enrollment verification letter: A letter from the Registrar's office of the University you are attending verifying your enrollment at that institution. It contains the dates of the semester and enrollment status (half time or full time).
forbearance: An arrangement to postpone payments on principal for a period of time but interest continues to accrue and must be paid, either monthly or at the end of the forbearance period.
grace period: The period of time when a borrower is no longer enrolled as a student prior to repayment of a loan. The length of the grace period is determined by the type of loan.
high-risk children: Individuals under the age of 21 who are low income and at risk of abuse or neglect; have been abused or neglected; have serious emotional, mental, or behavioral disturbances; reside in placements outside their homes; or are involved in the juvenile justice system.
infants and toddlers with disabilities: Infants and toddlers from birth to age two, inclusive, who need early intervention services for specified reasons as defined in section 672(1) of the Individuals with Disabilities Education Act.
interest rate: A percentage of interest that is charged on a loan during the repayment period. Late Fee: An amount of money charged to offset the extra costs associated with late payments.
law enforcement or correction officer: For cancellation purposes, this person is defined as an officer whose employing agency must be publicly funded and whose activities pertain to crime prevention, control, or reduction or the enforcement of the criminal law. To have part of your loan canceled, you must be a full-time employee of an eligible agency whose principal responsibilities are unique to the criminal justice system and are essential in the performance of the agency's primary mission.
low-income communities: Communities in which there is a high concentration of children eligible to be counted under Title I of the Elementary and Secondary Education Act of 1965, as amended.
medical technician: For cancellation purposes, a medical technician is defined as an allied health professional (working in fields such as therapy, dental hygiene, medical technology, or nutrition) who is certified, registered, or licensed by the appropriate state agency in the state in which he or she provides health care services. An allied health professional is someone who assists, facilitates, or complements the work of physicians and other specialists in the health care system.
NDSL: This is an abbreviation for National Direct Student Loan.
NOAAC: An abbreviation for National Oceanic Atmospheric Administration Corps.
NSLDS: This is the abbreviation for the National Student Loan Data System.
nurse: Defined for cancellation purposes as a licensed practical nurse, a registered nurse, or other individual who is licensed by the appropriate state agency to provide nursing services.
past due: If payment is not made or forms are not filed in a timely manner on or before the scheduled due date, the loan is considered to be past due.
pay off amount: The total amounts of principal, interest, any late fees or other costs that are due on a student loan.
prepayment: Repayment of loan prior to the loan entering the repayment period or making monthly payments ahead of time. Written notification from the borrower is required when making payments in advance of their due date.
previous year interest: Total amount of interest paid during the previous calendar year.
promissory note: A legally binding agreement you sign to obtain a loan, in which you promise to repay the loan along with any interest, late fees or other costs if applicable.
rehabilitation: The process in which defaulted borrowers may make their accounts current and no longer be considered delinquent or in default.
repayment period: The period of time over which the loan is amortized for payment.
teacher: a person who provides to students: direct classroom teaching; classroom-type teaching in a non-classroom setting; or educational services directly related to classroom teaching such as school librarians and school guidance counselors.
teaching in a field of expertise: For cancellation purposes the field of expertise is defined as teaching in the field of math, science, foreign language, or bilingual education.
volunteer service cancellation: Service as a Peace Corps volunteer or volunteer under the Domestic Volunteer Service Act (ACTION program) for loan cancellation.