- Accrued Interest
- Annual Portion Price
- Cumulative financial obligation limitation
- Frequent Interest Credit
- Deferment Period
- Installment Note
- Promissory Note
- Renewable Grace Period
- Renewal Note
- Sealed Instrument
- Scholar Help Report
- Subsidized Loan
- Unsubsidized Loan
- Waives Presentment
Acceleration: Repayment of responsibility that is earlier than initially contracted for.
Accrued Interest: Interest this is certainly obtained by the loan provider and payable because of the debtor. Michigan online payday loans Every day interest percentage is calculated regarding the unpaid major balance and becomes “accrued interest. ”
Amortization: The repayment that is gradual of financial obligation by periodic (usually monthly) installments of principal and interest.
Yearly portion Rate (APR): the sum total price of borrowing money expressed as a rate that is annual.
Assignment: The transfer associated with note to some other lender that is eligible. The borrower’s obligation and responsibilities usually do not alter.
Capitalization: The addition of unpaid accrued interest put on the key stability of that loan which escalates the total financial obligation outstanding.
Consolidation: Combining several academic loans right into a brand new loan with a new re re re payment routine and interest.
Cumulative financial obligation restriction: the most borrowing that is principal of all of the outstanding education loan financial obligation permitted by loan providers.
Day-to-day Interest Credit: the technique of determining the rebate of precomputed interest. If prepayment is created, the attention fee (finance cost) may be paid down to your quantity acquired into the day’s prepayment, also called “actuarial technique. ”
Default: The failure to settle that loan relative to the regards to the note that is promissory. Standard does occur after 180 times of non-payment on a merchant account. Continue reading “Glossary of Loan Terminology”