| Insurance
Fee: |
A fee
charged for the use of borrowed money, computed as a
percentage of the principal. The amount charged may be
based on the borrower's year in school and the grace
period. |
| Interest: |
The
price paid or fee charged for the use of borrowed
money, computed as a percentage of the principal
borrowed for a given time period. It may be tax
deductible for the borrower. |
| Internship/Residency: |
A physician
in a graduate medical education program approved and
accredited by the Accreditation Council on Graduate
Medical Education (ACGME). |
| Legal
Rate of Interest: |
The
maximum rate of interest permitted by the laws of the
state having jurisdiction over the loan transaction. |
| Lender: |
One who
provides money temporarily on the condition that the
amount borrowed will be returned, normally with
interest. |
| Liability: |
Something
for which one is liable. An obligation or debt. |
| Loan
Consolidation: |
A
refinancing program for certain student loans that
combines these loans with new terms over an extended
period of time. |
| Maturity
Date: |
The
date upon which a promissory note becomes due and
payable. |
| Maximum
Loan Limits: |
The total
amount a borrower is eligible for under a particular
loan program, usually expressed as annual and
cumulative limits. |
| Need
Analysis: |
The
computation of expected student and family
contributions to the cost of education and consequent
need for financial assistance. It is based on an
analysis of detailed financial information about the
income (and sometimes assets) of student, spouse,
parents, and guardians. |
| Net Income: |
Income less
all deductions, such as social security payments,
federal, state and local taxes, health and life
insurance payments, and retirement benefits. Net
income is also referred to as adjusted gross income. |
| Origination
Fee: |
Fee
charged by a lender to process a loan. When charged,
it is deducted from the principal. |
| Payout
Note: |
Conversion
of the interim note or notes to payout status. At this
point, a borrower begins to repay the principal with
interest according to a repayment schedule negotiated
prior to the issuance of the payout note. |
| Primary
Care: |
The
practice of medicine in the specialties of family
medicine, general internal medicine, and general
pediatrics. The definition may be expanded to include
other specialties, such as obstetrics/gynecology and
psychiatry, for specific purposes. |
| Prime Rate: |
The
interest rate that banks charge their best business
customers. |
| Principal: |
The
face value of the loan or the amount upon which
interest is charged. |
| Promissory
Note: |
A legally
binding contract between a lender and a borrower which
includes all the terms and conditions of the loan and
is signed by both parties at the time the loan is
made. Promissory notes should be signed for every loan
negotiated. |
| Recordation: |
The
act by which all loans and contracts are recorded
locally or federally as standing legal obligations. |
| Repayment
Schedule: |
The
repayment schedule states the terms of loan repayment.
It is a plan which indicates the total principal and
interest due, a monthly payment amount, and the number
of payments required to pay the loan in full. It also
shows the interest rate for the loan, and the schedule
for changes in the interest rate if it is a variable
rate loan, the due date for the first payment, and the
frequency of payments. |
| Satisfactory
Academic Progress: |
To
be eligible to receive federal student aid, you must
meet your school's written standards of satisfactory
academic progress. |
| Secondary
Market: |
A bank or
banking organization that specializes in buying
student loans. Loans are sold in order to obtain funds
to make more student loans. If your lenders sells your
loan to a secondary market, you will be notified and
will then repay the secondary market. The secondary
market replaces your original lender. The Student Loan
Marketing Association (or Sallie Mae) is the largest
secondary market. |
| Selective
Service Registration: |
This
requirement generally applies to males who were born
on or after January 1, 1960, are at least 18 years
old, are citizens or eligible non-citizens, and are
not currently on active duty in the U.S. Armed Forces. |
| Servicer: |
A company
that is hired by the lender or secondary market and
that specializes in student loan billing, student loan
payment collecting, and processing of deferment forms.
Your student loan accounts may be assigned to one or
more of these servicers. |
| Simple
Interest: |
Interest
calculated on the original principal only. |
| Simplified
Needs Test: |
The
simplified needs test is a variant of Federal
Methodology. A dependent student qualifies for the
simplified needs test if neither the parent nor the
student filed or will file an IRS Form 1040 but filed
or will file a 1040A or 1040EZ, and the base year
parents' adjusted gross income is $49,999 or less. In
the case of independent students, if the student or
student's spouse did not or will not file an IRS 1040
but filed or will file a 1040A or 1040EZ and the sum
of the base year student's and spouse's adjusted gross
income is $49,999 or less, the student qualifies. |
| Statement
of Educational Purpose: |
You
must sign this statement in order to receive federal
student aid. By signing it, you agree to use your
student aid only for educationally-related expenses. |
