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<strong>Promissory note</strong> – A legally binding agreement the borrower signs, or e-signs, to obtain a loan under the FFEL Program. The current promissory note format in place is referred to as an MPN, which allows the borrower to obtain multiple loans for multiple years of school using the same promissory note.
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<strong>Late Stage Delinquency Assistance (LSDA)</strong> – Refers to procedures followed by Student Loan Counseling Services (SLCS) when a loan is 241 days delinquent or more. The MDHE contracts with SLCS for default aversion assistance services.
<strong>Financial literacy</strong> – The ability to read, analyze, manage, and communicate about the personal financial conditions affecting material well-being. This term is used to describe financial education programs on college campuses and within high schools. The objective of financial literacy programs is to help students better manage their finances, budget effectively, and borrow wisely.
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