Reference

Your total gross income minus specific subtractions like student loan interest or retirement contributions. It is used as the starting point for calculating your final tax liability.

Unpaid interest that is added to the principal balance of a student loan, increasing the total amount on which future interest is calculated.

A mandatory online session for new federal student loan borrowers to ensure they understand their obligations.

A mandatory information session for student loan borrowers who are leaving school to learn about their repayment options and responsibilities.

A subsidy from the U.S. federal government for students with exceptional financial need to help pay for college. This type of aid generally does not have to be repaid, unlike a student loan.

A direct government subsidy awarded to undergraduate students who demonstrate exceptional financial need to help pay for post-secondary education. Unlike traditional student loans, these grants generally do not require repayment by the recipient.

A form provided by lenders that reports the amount of interest paid on a student loan during the tax year.

A plan for federal student loans where monthly payments are adjusted based on the borrower's income and family size.

A federal plan that sets a monthly student loan payment based on the borrower's income and family size.

A federal student loan repayment plan that sets monthly payments based on a borrower's income and family size. After a certain period, any remaining balance may be forgiven.

Federal Student Loan Consolidation — Combining multiple federal education loans into one new loan with a single monthly payment and a fixed interest rate.

Student Loan Interest Deduction — A deduction that allows you to reduce your taxable income by the amount of interest paid on qualified student loans during the year.

Private Student Loan Refinancing — The process of taking out a new private loan to pay off existing student loans, usually to secure a lower interest rate.

Modified Adjusted Gross Income: This is essentially your total income after certain tax deductions have been subtracted, which the government uses to decide if you qualify for specific tax breaks or benefits. You can think of it as your 'official' income level for tax purposes, adjusted for things like student loan interest or retirement contributions.

A legal agreement signed by a borrower promising to repay their federal student loans and follow all associated terms and conditions.

Master Promissory Note: This is a legal contract you sign when taking out a student loan, stating that you promise to pay the money back along with interest. It is a one-time document that covers all your future loans for that specific program, acting as your formal 'I.O.U.' to the lender.

A non-federal loan provided by a bank or other private lender to help students pay for their education.

Public Service Loan Forgiveness is a program that wipes out the remaining balance of your federal student loans after you make ten years of on-time payments while working for a government or non-profit organization. It is a reward for people choosing careers that benefit the public.

A program that cancels the remaining balance on federal student loans after the borrower has made 120 qualifying monthly payments while working for a qualifying employer.

A type of loan designed to help students pay for post-secondary education and the associated costs.

A process that combines multiple federal student loans into one single loan with a fixed interest rate based on the average of the previous loans.

The failure to repay a student loan according to the agreed-upon terms, typically occurring after 270 days of non-payment for federal loans.

A temporary postponement of loan payments granted under specific circumstances, during which interest may not accrue on subsidized loans.

The status of a loan when a borrower misses a payment, beginning the first day after the payment was due.

A temporary pause or reduction of loan payments for borrowers facing financial hardship, during which interest continues to accumulate.

The act of taking out a new private loan to pay off existing student loans, usually to obtain a better interest rate.

A private company that handles the billing and other administrative tasks for federal or private student loans. They collect payments and help borrowers manage repayment.

A federal student loan for which the government pays the interest while the borrower is in school at least half-time. These loans are based on financial need.

A federal student loan where the borrower is responsible for all interest that accrues from the time the loan is issued. These loans are not based on financial need.