The BorrowerA borrower that zero a good (unpaid) financing balance to your big date (s)the guy cues the fresh new promissory mention to have a specific educational mortgage.
Origination FeeA fee recharged because of the federal government and you may subtracted out of mortgage continues prior to disbursement so you can partially offset administrative will cost you of one’s Government Family members Student loan Program (FFELP).
PrincipalThe loan amount. Notice was billed on this subject matter, and you will guarantee and you may origination charges might possibly be subtracted prior to disbursement.
Promissory NoteThe legal document individuals indication once they score a degree financing. It listings standards significantly less than that cash is lent as well as the terms around and that consumers invest in pay back the borrowed funds which have focus. Individuals should keep the newest debtor backup of the promissory notes up to the newest finance is actually fully paid back.
Installment ScheduleDiscloses the borrower’s payment, interest, complete fees responsibility, payment dates, and timeframe to own paying off the borrowed funds.
Individuals are responsible for the attention with the the unsubsidized money away from the fresh go out the loan try disbursed
Sufficient Educational Progress (SAP)The policy off computing quantitative, qualitative and you can restriction informative advances getting school funding qualification. If a student doesn’t meet up with the minimum standards necessary for that it policy, new educational funding prize compared to that college student are canceled.