Capitalization eliminates payments while in school, but does increase the amount owed after school. Capitalization costs you money in the long run. Cost of Attendance - See Budget, above. Default - Failure to repay or otherwise meet the terms and conditions of a loan. Deferment - The postponement of payments on a student loan.
Most deferments are legal entitlements.
Delinquency - Failure to make a scheduled payment on a student loan. Dependent - Means that parental information is needed in determining a student's eligibility for financial aid. Note that a student may be living away from home and not receiving any money from parents and still be dependent for financial aid purposes. Generally, any student under age 24 is considered dependent. EFT - Electronic Funds Transfer is used by lenders to send student loan funds electronically to schools, in lieu of paper checks.