Definitions You Should Know As A Loan Holder | Kent State University

Definitions You Should Know As A Loan Holder

DEFINITIONS YOU SHOULD KNOW AS A LOAN HOLDER

Borrower-The person who signs the promissory note.

Cancellation-Canceling part or in full of original loan balance.

Consolidation -A federally guaranteed program that allows you to combine student loans into one repayment plan.

Credit Bureaus-Organizations that maintain records on your financial history. They report your information to lenders, employers, and other businesses.

Default-Failure to repay a student loan according to the agreed upon terms.

Deferment-A limited time during which those eligible do not have to make loan payments.

Delinquent-Overdue on one or more payments on a loan.

Entrance/Exit Interview-A counseling session about Federal loans including Federal Perkins, Nursing, and Schell Loans. An entrance interview is required at the time you sign a promissory note. An exit interview is required at the time you leave school.

Forbearance-An arrangement whereby the lender may delay the repayment of a student loan because of financial hardship.

Grace Period-Period of time before you must begin making payment on a student loan.

Hardship-A period of financial difficulty that may allow you to delay repayment of a loan or to decrease monthly payments.

Promissory Note-A legal document that you sign promising to repay your loan. It lists the conditions under which you're borrowing and the terms under which you agree to pay back the loan.

Repayment-The act of paying back part, or all, of your loan before payment is due.