CSL Loan

Welcome to CEC SERVICES STUDENT LOAN (CSL) | CSL is available for all the eligible,qualified and talented students from all the countries around the world. | CSL Application Fees for 2010 is Euro 290.00

CSL TERMINOLOGY

Accrued interest

Interest accumulated on the unpaid principal balance of a loan.

Amortization

To provide the gradual elimination of debt by contribution to a sinking fund at the time of each periodic interest payment.

Arrears

This is the portion of the principal sum and interest due that is unpaid by law for a period of 179 days.

Borrower/Beneficiary

For the purposes of the CSL: The recipient of a student loan from the CSL.

Capitalization

Addition of unpaid interest to the principal balance on a loan; which increases the total outstanding balance.

Credit Bureau

An agency, which collects and distributes credit and personal information to creditors. A credit report form a bureau may include payment history on loans or other credit accounts, balances on accounts and place of employment.

Default

Failure to repay a loan or any portion of the loan when the outstanding balance becomes due. By law default occurs after 179 days of delinquency.

Deferment

A period when a borrower, who meets certain criteria, may with the approval of the lender suspend loan repayment temporarily.

Delinquency

Failure to make on-time monthly loan payments when due.

Disbursement

When the lender issues loan funds.

Disclosure statement

Statement of actual cost to the borrowers for a loan, this includes the interest rate and any other additional finance charges.

Eligible borrower

An applicant who meets all criteria required for loan approval.

Fixed Interest

Rate of interest that does not change during the life of the loan.

Forbearance

A special arrangement between that borrower and the lender (at the lender's option) which may allow the borrower to temporarily stop making payments, obtain an extension for making payments, or smaller payments than originally scheduled.

Guarantor

The person that co-signs a loan agreement with the applicant accepting legal responsibility for the loan if the primary borrower defaults.

Holder

The institution that owns the loan.

Head of Household

The person who has primary decision-making responsibility for the household.

Interest Rate

The rate at which interest is generated on the loan amount.

Moratorium

Also called the grace period is the period during which no repayment is expected.

Need-based

A means of determining eligibility for loans by using financial need as the determining factor.

Principal

Amount borrowed, which may increase as a result of interest capitalization.

Promissory Note

Contract between a borrower and the lender that includes all the terms and conditions under which the borrower promises to repay the loan.

Repayment Period

The time period within which a loan must be repaid to the lender.

Up-front fees

Money charged to the borrower at the time a loan is approved or disbursed. These may include processing fees, insurance fee, commitment or origination fees. The payment of a fee allows borrowing at a competitive interest rate without pledging collateral

Variable Interest

Rate of interest that may change during the life of the loan.