Interest is calculated as a percentage of this amount. Promissory note A contract with the lender that you, the borrower, sign before the loan is disbursed. This states that you will repay the loan and legally binds you to its terms and conditions. A document you will receive shortly after you leave school that states how much you owe, what your monthly payment is and when your first payment is due. A company that buys loans from lenders.
Lenders often sell loans to secondary markets so they can continually replenish their lending funds.
If your loan is sold and the payment address changes, you will be notified by mail and given a new address for future loan correspondence. This can include borrower address updates, refunds, deferments, forbearances and payments. Many holders contract with an outside company, or servicer, to carry out these functions. Subsidized One of the types of Stafford loans. The U.S. government pays the interest on this loan for you while you are in school, during your six-month grace period, and during periods of authorized deferment.