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The following is a list of commonly used terms in the Student Loan Consolidation industry. If you've ever dealt with student loans, chances are you've heard some or all of these terms.

Deferment

Temporary postponement of loan payments

Federal Loan

A loan guaranteed by the government

Fixed Interest

Loan rates that do not change over the loan’s lifecycle

Forbearance

Permission to postpone or reduce monthly loan repayment for a specified and limited time, usually for:

Participation in a medical or dental internship or residency,
Inability to make loan payments due to poor health (if you do not qualify for deferment),
Obligation to make payments that are 20% or greater than your monthly gross income,
Or service in a position under the National and Community Service Trust Act of 1993.

Grace Period

A time lapse between a student's graduation and the beginning of loan repayments (usually six to nine months).

Interest Rate

The amount of money charged by borrowing from the lender.
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Maturity Date

This is the date on which you must start repaying the loan.

Prepayment

Making loan payments before the time specified by the promissory note; no penalty for prepaying principal or interest at any time

Principle Balance

The dollar value of the declining balance due on a loan, including capitalized interest.

Subsidized Loan

Awarded on financial need these loans won't be charged interest before you begin repayment .The federal government "subsidizes" the interest during these periods.

Unsubsidized Loan

These loans are charged interest from the time the loan is disbursed until it's paid in full. If you allow the interest to accrue in periods of nonpayment, the interest will be added to the principal amount and additional interest will be based on that higher amount.
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