The lender, institution, or agency that originated the loan and holds its legal title, or a lender or secondary market that purchased the loan from the original holder. Payments increase as income rises. The repayment term may be lengthened in this program. A financial instrument that provides the basis for the interest rate charged on a loan. Federal Stafford loans are typically indexed to the current rate of the 91-day U.S. Treasury bill.
Interest is calculated as a percentage rate of the loan principal.
The interest rate charged can be fixed, which means it does not change over the life of the loan, or the rate can be variable, in which case, it changes periodically. A financial index on which the interest of Access Group Private Loans is based. The bank, savings and loan, credit union, or other approved entity from which the borrower obtains a loan. The academic year or portion thereof for which the applicant is enrolled and is seeking one or more loans. This is the legally binding contract between the borrower and the lender of a Federal Stafford Loan.