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Default:
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This happens when a borrower fails to make scheduled payments on student loan debt, or it is determined that the borrower has no intention of honoring the terms of the promissory note. A student loan default has serious consequences:
- Reported to all credit bureaus resulting in damage to your credit rating;
- Loss of generous repayment schedule and deferment options;
- Possible seizure of federal and state tax refunds;
- Exposure to civil law suit;
- Possible garnishment of wages; and
- Loss of eligibility for other student aid programs until suitable arrangements for repayment are made.
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Deferment:
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An approved period during which principal loan payments are set aside. If you are a Federal Perkins Loan borrower or subsidized Federal Stafford Loan borrower, the federal government will pay your interest while your loan is in deferment. Your repayment period is extended by the length of the deferment period. In order to receive a deferment, you must apply for one and meet certain conditions. Reasons you can defer new loans may include:
- Enrolled as at least a half-time student at postsecondary school;
- Unemployed; and
- Economic hardship.
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Delinquent:
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A borrower is delinquent when a loan payment is not made when due.
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Dependent Student:
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Generally considered to be any student under the age of 24. (See the definition of Independent student for exceptions.)
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Dependents Tuition Assistance Program:
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Pays tuition, room and board for dependents of Colorado law enforcement officers, fire or national guard personnel killed or disabled in the line of duty, and for dependents of prisoners of war or service personnel listed as missing in action. Applications are available at the Colorado Commission on Higher Education.
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Disbursement:
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The process by which financial aid funds are credited to the student's account to pay school charges and/or made available to students.
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