Default-Failure to pay a loan in accordance with the terms of the promissory
    note.

Deferment-The temporary postponement of loan payments.

Delinquency-This occurs when payments are late or missed, as specified in
    the terms of the promissory note and the selected repayment plan.

Discharge (cancellation)-The release of borrowers from their obligations
    to repay their Direct Loans.  Borrowers must met certain requirements to be
    eligible.

Direct Loan Service Center-The Department of Education's agent
    contracted to collect Direct Loans and handle deferments, repayment options,
    and consolidation.

Forbearance-An arrangement to postpone or reduce a borrower's monthly
    repayment amount for a limited and specified period, or to extend the repayment
    period.  The borrower is charged interest during a forbearance.

Grace Period-A six month period before the first payment must be made on
    a Direct Loan.  This period starts the day after the borrower ceases to be
    enrolled at least half-time.

Prepayment- Any amount paid on a loan before it is required to be paid
    under the terms of the promissory note.

Repayment Schedule-A statement provided by the Direct Loan Servicing
    Center to the borrower that lists the amount borrowed, the amount of monthly
    payments, and the date payments are due.

Standard Repayment Plan

    Under this plan, you will make a fixed payment of at least $50 a month for up to
    10 years.  You will pay the least total interest under this plan. 

Extended Repayment Plan

    Under this plan, you will still have monthly payments of $50, but you can take
    12 to 30 years to repay your loan, depending on the amount borrowed.  You will
    end up paying more interest because of the extended period.

Graduated Repayment Plan

    Your payments start at one level, then increase every two years.  Payment
    period can be from 12 to 30 years and depends on the total amount of your
    loans.

Income Contingent Repayment Plan

    Each year, your monthly payment amount will be calculated on the basis of your
    annual Adjusted Gross Income.

What is Financial Aid?
Federal Financial Aid
How to Apply for Federal Aid
Outside Aid
Deferments and Forbearance
Resources and Evaluation

Home

Questions about this site? mailto:mdiodato@arches.uga.edu or mailto:baderj@arches.uga.edu