Reference Cards
Printable cheat sheets you can keep at your desk.
Payment Allocation Methods
| Standard Waterfall | Default order: fees → accrued interest → principal. Excess flows to the next loan. |
|---|---|
| This Loan Only | Apply funds to one specific loan rather than spreading across the portfolio. |
| Per Loan Allocation | Distribute payment proportionally across multiple loans simultaneously. |
| Advanced Allocation | Custom split — e.g., target highest-interest loan or specified dollar amounts. |
| Curtailment | Extra funds applied directly to principal; loan re-amortizes and pays off faster. |
| Pay Ahead | Extra funds satisfy upcoming due dates instead of reducing principal. Interest still accrues. |
Content developed with AI assistance. Verify details against current federal guidance.
Fee Types
| Interest | Daily accrual on outstanding principal. Paid first in standard waterfall. |
|---|---|
| Principal | Original borrowed amount; reduced after fees and interest are satisfied. |
| Capitalized Interest | Unpaid accrued interest added to principal — compounds going forward. |
| Capitalized Fees | Origination/draw fees rolled into principal; accrue interest over loan life. |
| Late Fee | Charged when payment misses due date + grace. Common on private; rare on federal. |
| NSF / Returned Check Fee | Assessed when a payment bounces. Reverse posting, re-debit, notify borrower. |
| Origination / Draw Fee | Charged at origination or draw. PLUS loans ~4.2%; many private loans waive. |
| Institutional Collection Fee | School-assessed cost recovery on delinquent campus-based loans. |
| Contingency Fee | % of amount collected paid to collection agency/attorney; passed to borrower. |
| Litigation Fee | Legal/court costs for collection lawsuits, per note and applicable law. |
| Penalty Fee | Adverse-action fee (e.g., prepayment penalty). Prohibited on federal loans. |
| Foreign Bank Fee | Currency conversion / international transaction cost on foreign payments. |
| Other Fee | Catch-all — minimize use; document description, basis, and disclosure. |
Content developed with AI assistance. Verify details against current federal guidance.
Federal Repayment Plans
| Standard | Fixed payments, up to 10 years. Default plan. Lowest total interest, highest monthly. |
|---|---|
| Graduated | Payments start low, step up every 2 years. Up to 10 years. |
| Extended | Up to 25 years. Requires >$30k in Direct Loans. Lower monthly, more total interest. |
| SAVE | Newest IDR (replaces REPAYE). Undergrad payments capped at 5% of discretionary income. |
| PAYE | 10% of discretionary income. New-borrower eligibility required (no balance pre-Oct 2007). |
| IBR | 10% (new borrowers post-7/2014) or 15% (older). Forgiveness in 20 or 25 years. |
| ICR | Lesser of 20% of discretionary income or 12-yr fixed plan. Only IDR option for Parent PLUS (after consolidation). |
Content developed with AI assistance. Verify details against current federal guidance.
Key Acronyms
| COA | Cost of Attendance — total annual cost figure used for federal aid calculations. |
|---|---|
| FSA | Federal Student Aid — the office within the U.S. Department of Education. |
| IDR | Income-Driven Repayment — umbrella for SAVE, PAYE, IBR, ICR. |
| NSLDS | National Student Loan Data System — federal database of aid and loan records. |
| PSLF | Public Service Loan Forgiveness — 120 qualifying payments + qualifying employer. |
| SAVE | Saving on a Valuable Education — newest IDR plan. |
| IBR | Income-Based Repayment — IDR plan, 10% or 15% formula. |
| PAYE | Pay As You Earn — IDR plan, 10% formula with newer-borrower rules. |
| ICR | Income-Contingent Repayment — IDR plan; only Parent PLUS option after consolidation. |
| FFEL | Federal Family Education Loan — legacy program ended 2010, still in servicing portfolios. |
| PLUS | Parent or Grad PLUS — federal loans with credit check; statutory origination fee. |
| TPD | Total and Permanent Disability discharge — VA/SSA/physician-certified. |
| CFPB | Consumer Financial Protection Bureau — primary federal consumer-finance regulator. |
| HEA | Higher Education Act — governing statute for federal student aid programs. |
| TCPA | Telephone Consumer Protection Act — restricts autodialed/prerecorded calls/texts. |
| NSF | Non-Sufficient Funds — bank-returned payment trigger for fee assessment. |
| MPN | Master Promissory Note — federal loan governing contract. |
| CDR | Cohort Default Rate — federal metric of school-level borrower default. |
| TILA | Truth in Lending Act — disclosure requirements including capitalized fees. |
| NPS | Net Promoter Score — borrower satisfaction metric used to evaluate servicers. |
Content developed with AI assistance. Verify details against current federal guidance.