When combined, Direct and Indirect costs make up a student s cost of attendance. If these efforts are unsuccessful, the lender will usually take steps to place the loan in default and turn the loan over to the guarantee agency in your state for collection. This time frame is specified in your loan materials. Deferment A specified and temporary period during which no loan payment is due. When the borrower fails to make a payment when due, or to meet other terms of the promissory note.
Most loans have one or more fees, such as guarantee, origination, and insurance of application fees.
These fees are usually deducted from the amount you borrow before the loan is disbursed. Some loan fees can be borrowed in addition to the approved loan amount. The interest rate remains the same over the life of the loan. Forbearance A specified and temporary period during which no principal loan payment is due, or a period of time during which the lender agrees to accept smaller payments. A six or nine month period between graduation or leaving school and when repayment begins.