July 11, 2006, 10:40 am : Glossary H - P
Filed Under: Interest RatesDiscussion:
Half-time
A student is considered half-time when carrying at least one half the academic workload of a full-time student as determined by the school.
Health Professions Loans
Loan programs authorized by the Public Health Services Act and administered by the U.S. Department of Health and Human Services (HHS) rather than the U.S. Department of Education. Although health professions loans can be included in consolidation loans, borrowers should be aware of the advantages and disadvantages of consolidating these loan types because of the differences between the programs. See the benefits comparison chart for details.
HHS loans include:
Health Professions Student Loans (HPSL)
Loans for Disadvantaged Students (LDS)
Health Education Assistance Loans (HEAL)
Nursing Student Loans (NSL)
Holder (also holder of loans/loan holder)
A holder (loan holder) is an entity that holds a loan promissory note and has the right to collect from the borrower.
Income Contingent Repayment(ICR) Plan
A repayment plan that bases your monthly payment on your yearly income, family size, and loan amount. As your income rises or falls, so do your payments. After 25 years, any remaining balance on the loan will be forgiven, but you may have to pay taxes on the amount forgiven.
Each year your monthly payment will be based on your family size, annual Adjusted Gross Income (AGI) as reported on your federal tax return, and the total amount of your Direct Loan(s). To participate in the ICR Plan you must authorize the U.S. Internal Revenue Service (IRS) to inform the U.S. Department of Education (Department) of the amount of your income. This information will be used to calculate your repayment amount, which will be adjusted annually to reflect changes in your AGI If you select the ICR Plan, you will be billed for only the interest amount that accrues on your loan each month until you complete and return the required documentation. We cannot place you on ICR Plan until we receive your completed forms.
Independent Student
An independent student is at least 24 years old, married, a graduate or professional student, a veteran, a member of the armed forces, an orphan, a ward of the court, or someone with legal dependents other than a spouse.
In-School Status
The status of a loan prior to entering the grace or repayment period.
Interest
A loan expense charged by the lender and paid by the borrower for the use of borrowed money. The expense is calculated as a percentage of the unpaid principal amount (loan amount) borrowed.
Loan(s)
Money borrowed from a lending institution or the U.S. Department of Education that must be repaid.
NSLDS
The National Student Loans Data System is a centralized database that stores information on all U.S. Department of Education loans and grants. NSLDS also contains borrowers’ school enrollment information. Borrowers can access this information online using their Department of Education PIN.
Out of School
Borrowers are “out of school” if they are making scheduled payments on their federal education loans (repayment) or they are in a period of grace, deferment, or forbearance.
Payment Amount
The total amount of a borrower’s most recent payment.
Payment Date
The date borrower’s payments are received and applied to their loan accounts.
PIN
Your PIN serves as your identifier to allow access to personal information in various U.S. Department of Education systems.
Your PIN also acts as your digital signature with some online forms. Use your PIN to electronically sign your online Loan Consolidation Application and Promissory Note, Deferment, or Forbearance forms.
If you do not already have a PIN, you can request one online by selecting the Request a PIN button link located on the left menu bar. The PIN you will receive will be your universal U.S. Department of Education PIN.
PLUS Loan
PLUS Loans are available to parents of dependent graduate students and to students enrolled in graduate and professional programs. PLUS loans are unsubsidized loans that accrue interest from the date of disbursement.
Prepayment
A prepayment is an amount in excess of the amount due on a loan. If borrowers have more than one Direct Loan, they must specify which loan they are prepaying. Like all other Direct Loan payments, a prepayment first will be applied to any outstanding fees and charges, next to outstanding interest, and then to the principal balance of the loan(s). There is never a penalty for prepaying principal or interest on Direct Loan Program loans.
Principal Loan Balance Outstanding (principal balance)
The total principal amount outstanding on a borrower’s Direct Loan(s). Principal balance will include the original amount(s) disbursed for the loan(s), any adjustments made to the loan disbursement amount, and any interest capitalized on the account(s).
Promissory Note
The binding legal document that borrowers sign when they obtain loans. Promissory notes define the conditions under which funds are provided and the terms under which borrowers agree to pay back the loan. Promissory notes include information about the interest rate and about deferment and cancellation provisions.