Student Loan Dictionary

 

If you have been researching international student loans, you are likely confused by the plethora of difficult terms on your international student loan. Have no fear; below please find enhanced definitions for a greater understanding of the useful vocabularies pertaining to your international student loan.

1. Accrued Interest

Interest on your loan that has been acknowledged but not yet paid or received. In the case of the borrower, accrued interest would not have been paid and in the case of the lender, accrued interest would not have been received.

2. Adjusted Gross Income (AGI)

AGI measures what portion of income can be taxed. Essentially, this is the total income minus a number of nontaxable items, for example, medical expenses.

3. Amortization

While you might be thinking amortization has something to do with Amor, unfortunately it is actually referring to a type of debt repayment. More specifically, amortization signifies paying back borrowed money in an organized fashion, via weekly, monthly or annual installments.

4. Amount Due

The final value owed by a certain deadline for a good or service. Particularly pertaining to taxes, the amount due is a larger sum than total tax payments made beforehand.

5. APR

The APR, or Annual Percentage Rate, is an interest rate calculated on a yearly basis. The APR differs according to the individual loan as well as the lender providing the loan.

6. Award Letter

The letter sent by a university verifying the eligibility of students for financial aid.

7. Certified loan

If your loan is certified, it means that the university where you are studying is required to confirm that the loan amount provided is correct. This serves to ensure that the amount withdrawn corresponds to need and is not in excess.

8. Cost of Attendance (COA)

The sum of the price for attending a university in a year. This estimated value includes tuition, room and board, as well as additional collegiate expenses.

9. Delinquent

An individual or group that has refused to pay loans on time and in full. Consequences vary from a late fee to serious legal battles.

10. Endorser

An endorser, like a cosigner, is a person who supports your loan withdrawal and is equally responsible under the law for repayment.

11. Origination Fee

A fee required of the borrower at the beginning of the loan application process in order to finance the corresponding preparation by the lender.

12. Promissory Note

A written and signed agreement, indicating a promise between a lender and a borrower to repay a loan, including interest rates and other fees, by a predisposed due date.

Now that you have an improved knowledge base concerning international student loan definitions, hopefully you can move forward feeling more at ease.

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Source: International Students Loan