Loan Amount: The total amount you borrowed
Loan Term: The amount of time you have to repay your loan
Monthly Payment: Monthly minimum you have to pay to stay current
Annual Interest Rate: The cost of borrowing money, usually calculated as a percentage of the total loan amount plus previous interest and applied on a monthly basis
Direct Subsidized Loan: The Federal government pays the interest while the student is in college or while the loan is in deferment.
Direct Unsubsidized Loan: Interest begins accruing as soon as the loan is taken out.
Deferment: A period of time when the bank agrees to let you hold off on monthly payments – usually for a period of 6 months. Generally, interest continues to accumulate during a deferment
In-school Deferment: Mandatory deferment (usually without interest) for full time students. Expires 6 months after student ceases full time enrollment
Loan Default: Cessation of loan terms due to non-payment.