Glossary Building #2
Because most students that attend universities choose to obtain loans I believe it is important to know the different types of loans offered to the students. Moreover, having a plan to start paying off their school loans is just as important. Therefore this glossary building can be beneficial for the students.
- Grace Period:
The grace period is a set a period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repayment on your loan. The grace period gives you time to get financially settled and to select your repayment plan.
- Perkins Loan:
Federal Perkins loan program, often called Perkins loans, are low-interest federal student loans for undergraduate and graduate students with exceptional financial need.
- Income Driven Replacement Plan:
Income based repayment and revised pay as you earn, which cap your monthly payments at a reasonable percentage of your income each year, and forgive any debt remaining after no more than 25 years (depending on the plan) of affordable payments. Forgiveness may be available after just 10 years of these public and non profit sectors.
Your loan becomes delinquent the first day after you miss a payment. Even if you miss just one monthly payment and then start making payments again, your loan account will remain delinquent until your repay the past due amounts or make other arrangements.