Your best source for information on student loan programs is the financial aid officer at the school you plan to attend or are attending. Loan Terminology Listed below are the definitions of some basic loan terms that will help you to understand the loan summaries that are provided in this section. Subsidized loan - Loans that have no interest cost to the borrower during school, the grace period, and any deferment periods for which the borrower might qualify. Unsubsidized loan - Loans that begin to accrue interest immediately upon disbursement. The interest that has accrued and is unpaid is eventually capitalized.
Interest accrues on all loans during forbearance.
Loan fees - Costs associated with the processing and collection of the loan that are usually deducted from the loan prior to disbursement and vary according to the type of loan. Fixed interest rate - An interest rate that remains the same throughout the life of the loan. Repayment Borrowers of Federal Student Loan Programs may choose from several repayment options and should select the schedule that best fits their future residency and practice plans, as well as a schedule that will keep the cost of repayment to a minimum. The availability of repayment plans will be dependent upon the type of loan program. Increases the total amount of interest paid over the standard repayment plan, but is generally significantly less than the interest paid with the extended and income-base repayment plan.