Guaranty AgencyThe company that administers the Federal Stafford Loan and Federal PLUS Loan programs in a state. The government sets loan restrictions and rates of interest, but each state can set a unique extra directions, within federal laws.
Guaranty FeeAn insurance coverage premium deducted through the borrower’s loan profits ahead of disbursement and paid in to the guaranty agency that guarantees the mortgage. For legal reasons, the cost cannot go beyond 1 per cent for the loan amount.
InterestA fee charged for the application of lent cash. Interest rates are calculated as a share associated with principal loan quantity. The price could be constant through the entire lifetime of the mortgage (fixed price) or it would likely alter at certain times (variable price). (more…)