Some lenders offer a small reduction in your interest rate if you sign up for this. Award Letter: You’ll receive this letter from your intended college.
In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time.So, for instance: If the average comes to 6.15%, your new interest rate will be 6.25%.Additionally, you’ll get a new loan term ranging from 10 to 30 years.You may have loans where you are the borrower, and loans where a parent is the borrower.Cancellation: In very rare circumstances, you may hear of a student loan being cancelled. Whether you’re just starting out on your college journey or dealing with student loans from years ago, here is a glossary of helpful terms you may need to know: Accredited: If your college and program is accredited, it means that it has met specific requirements by the U. Administrative Wage Garnishment: If your federal student loans go into default, the federal government has the ability to take up to 15% of your disposable income directly from your employer.