Failure to make scheduled monthly payments according to the agreed-upon terms. A period during which a borrower, who meets certain criteria, may suspend loan payments. For some loans the federal government pays the interest during a deferment. On others, the interest accrues and is capitalized, and the borrower is responsible for paying it. Failure to make monthly loan payments when due.
Delinquency begins with the first missed payment.
An undergraduate student whose parents provide more than half of their financial support. A dependent student is not married, is under 24 years of age, has no legal dependents, is not an orphan or ward of the court, nor a veteran of the U.S. Armed Forces. The release of loan funds to the school for delivery to the borrower. Disbursements are usually made in equal multiple installments co-payable to the borrower and the school. Statement of the total cost and amount of a loan, including the interest rate and any additional finance charges.