Specified period of time between the date a student graduates or drops below half-time status and the date loan repayment begins. In most cases the grace period is six months. A student in a post-secondary institution who is enrolled in a master's or higher level degree program. A repayment schedule in which the monthly payments are lower at the start of the repayment period and increase every 24 months of repayment until the loan is repaid. Financial aid awards that do not have to be repaid.
Grants are available through the federal government, state agencies and colleges.
Income before taxes, deductions, and allowances have been subtracted. An agreement between a lender and a guarantor that stipulates that the guarantor will reimburse the lender for a portion of the loan in the event that the loan is not repaid by the borrower due to death, disability, bankruptcy, school closure, or default. A state-run or designated agency that acts as an agent for the federal government to ensure proper procedures are followed by lenders and schools. Guarantee agencies also reimburse lenders for defaulted loans. A predetermined fee withheld from the principal loan amount and forwarded to the guarantee agency to offset the administrative cost.