A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- ForbearanceA temporary pause or reduction of loan payments granted for hardship, during which interest usually continues to accrue.
- Interest CapitalizationWhen unpaid interest gets added to your loan principal, so future interest is charged on a larger balance.
- Student LoanMoney borrowed to pay for education, offered by the government or private lenders, repaid with interest after school.
- Federal Student LoanAn education loan issued by the U.S. government that offers fixed rates and flexible repayment and hardship options.
More in Credit & Debt
Plain-English education — not personalized legal, tax, or investment advice.