Disbursement
Occurs when the lender sends the loan funds to the school or borrower.

Disclosure Statement
Statement sent by the lender to the borrower describing the estimated costs of a loan, the interest rate and any additional finance charges.

Electronic Funds Transfer (EFT)
Any transfer of funds that is initiated through electronic means, such as a wire transfer from a bank to a school.

Eligible Borrower
An individual who meets all criteria required for loan approval.

Forbearance
A special arrangement between a borrower who has experienced certain hardships (such as severe medical problems) and the lender in which the lender allows the borrower to temporarily stop making payments or to make smaller payments than would otherwise be required.

Interest Rate
The cost of borrowing money, expressed as a percentage, over a period of time.

Interest-only Payment
A payment that covers only interest that accrues on the loan and does not result in reductions in the principal balance.

Lender
The bank, credit union, or other financial institution from which you have borrowed your student loan funds.

Loan Limits
The minimum and/or maximum amount of money an applicant may borrow from a lender under a specific loan program during a specific time period.

Origination Fee
A fee charged to the borrower by the lender for processing the loan application and originating the loan.

Principal -
Amount borrowed plus any capitalized fees. Principal may increase as a result of interest capitalization.

Repayment Period
The period during which a loan must be repaid.


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