Glossary

While you undoubtedly learned a lot about your specific field during your time in college, you might not have learned the specifics of student loans. With student loan debt breathing down your neck, now would probably be a good time for a quick study session. Take advantage of our glossary section and learn all about these important student loan terms:

• Accrued Interest - The additional amount of money you have to repay on a loan, on top of the original principal.
• Annual Percentage Rate - The effective interest rate when all finance charges and upfront fees are included.
• Consolidation - Process that allows a borrower to combine a number of existing loans into one loan. Often, it allows the borrower to pay off their loans faster and save money.
• Credit Rating - A numerical score assigned by credit bureaus used for determining one's ability to repay loans or debt.
• Default - Failure to repay a loan according to the terms originally agreed to.
• Fixed Interest Rate - Refers to loan interest rates that will not change throughout the entire lifecycle of the loan.
• Grace Period - A 6-month or 9-month period accepted to a student after a departure from school and before repayment starts.
• Lender - The organization, bank, or lending institution from which a student loan is borrowed.
• Discharge - The release of a borrower from the obligation to repay his or her loan.
• Principal - The loan amount that must be repaid on maturity and the basis of how interest is charged.
• Repayment Period - The time during which interest accrues on the loan and principal payments are required.
• Subsidized Loan - A loan eligible for interest benefits paid by the federal government.
• Variable Interest Rate - Loan interest rates that can change, based on the loan's terms.

For more help and understanding federal loan consolidation rate, check out the frequently asked questions we have answers to.