formerly University of Missouri-Rolla

Accounting/Fiscal Services
G-3 Parker Hall
300 W. 13th St.
Phone: (573) 341-4189
Fax: (573) 341-6308
Email: acctg@mst.edu

Glossary of Terms
  • Cancellation - the release of borrowers from their obligations to repay all or part of their Perkins Loans. A borrower may be eligible for a discharge if the borrower dies, becomes totally and permanently disabled, or is employed in a qualifying field as outlined in the Cancellation Eligibility Form.
  • Consolidation - combining several education loans into a new loan with a new payment schedule and interest rate.
  • Default - failure to repay a loan according to the terms agreed to when you signed a promissory note. Default occurs when a borrower becomes 270 days delinquent in making a payment on his or her loan(s). The consequences of default are severe.
  • Deferment - deferment is a temporary suspension of your monthly loan payment. There are many different types of deferments available. During deferment of Perkins Loans, principal payments are postponed and interest is not charged.
  • Forbearance - forbearance is a program used to temporarily suspend or reduce your monthly loan payments. You may qualify for a forbearance if you are willing but unable to make loan payments due to certain types of financial hardships. Contact Student Loan Collections for more information and application.
  • Ombudsman - an ombudsman resolves disputes from a neutral, independent viewpoint. The Federal Student Aid (FSA) Ombudsman will informally conduct impartial fact-finding about your complaints. They will recommend solutions, but they do not have the authority to reverse decisions. They also work to bring about changes that will help prevent future problems for other student loan borrowers. This free service is provided by the US Department of Education.
  • Promissory Note - the binding legal document you sign when you get a student loan. It lists the conditions under which you are borrowing and the terms under which you agree to pay back the loan. It will include information about your interest rate and about deferment and cancellation provisions.
  • Postponement - payment of principal and interest are temporarily suspended pending a deferment or cancellation