Consolidation: Combining debt from multiple loans into one loan.

Default: Failure to make loan payments when due, under circumstances where the lender reasonably concludes that the borrower no longer intends to honor the obligation.

Deferment: A period when loan payments are not required if the borrower meets certain conditions.

Extended repayment plan: Standard or graduated payments scheduled over 25 years (available to qualifying borrowers).

FDLP (Federal Direct Loan Program), also called Direct Lending: U.S. government program that makes certain federal loans directly to students.

FFELP (Federal Family Education Loan Program): Program where private lenders make certain federal loans to students.

Fixed interest rate: A rate of interest that remains constant over the life of the loan.

Forgiveness: Full or partial release from a loan obligation for an eligible borrower.

Forbearance: A period when loan payments may be suspended or reduced. May be an entitlement for eligible borrowers or granted at the discretion of the lender.

Grace period: A period following at least half-time school enrollment when payments are not required. The typical grace period for Stafford loans is six months.

Grad PLUS loans: Federal loans made to graduate and professional students.

Graduated repayment plan: Tiered payments over the life of the loan.

Income-sensitive repayment plan: Payments tied to income, adjusted annually.

Perkins loans: Need-based federal loans made through the school.

Parent PLUS loans: Low interest FFELP or FDLP loan available to parents of dependent undergraduate students.

Private loans: Loans from that are not made under a federal loan program.

Principal: The outstanding amount of a loan on which the lender charges interest.

Subsidized loan: Loan on which the federal government pays (subsidizes) the accruing interest during in-school, grace, and deferment.

Stafford loan: Low interest FFELP or FDLP loan available to qualifying students.

Standard repayment plan: Equal payments over the life of the loan.

Unsubsidized loan: Loan on which the borrower is responsible for all accruing interest, regardless of loan status.

Variable interest rate: A rate of interest that adjusts periodically based on market conditions.