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.
Fees can range from zero to one percent of loan amount.
See Federal Stafford Loan . An eligible lender or approved secondary market in possession of a guaranteed loan. A term used to describe the areas of English, languages, religion, literature, history, and philosophy. Disciplines that fall under Humanities vary from school to school.