| Knowledgebase Home | Glossary | Favorites     Contact     Login    Home     FAQ     Glossary     Favorites     Contact     Login Welcome to our knowledge base. To find what you're after, use the search box below or choose a category to view listed articles. Search the Knowledgebase Browse by Category [Advanced Search] -- Select Category -- Forbearance and DefermentPaymentsSchool & MilitaryStudent Loan Help All 0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Word Description Parent/Graduate PLUS Loan A Federal loan program through which parents of undergraduate students (Parent PLUS) or graduate students (Graduate PLUS) borrow funds to help pay for an education. Principal Balance The outstanding amount of the loan, on which the lender charges interest. As the loan is repaid, a portion of each payment is used to satisfy interest that has accrued, and the remainder of the payment is used to reduce the outstanding principal balance. Private Loan A loan that is created through a private lending institution, has a private guarantor, and is not part of the Federal Family Educational Loan Program. Promissory Note A legally binding agreement between the borrower and the lender. The agreement includes the terms and conditions including how and when the loan must be repaid. By signing the Promissory note the borrower is agreeing to repay the loan under these terms.