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When you were deciding how to finance your education, you probably became intimately familiar with the jargon and acronyms involved with student financial aid — FAFSA, EFC, Pell grants, disbursement, etc. At the time, you may have just been eager to finance your education and didn’t worry too much about the details. If you’ve now started paying on loans, or payoff is in the near future, there’s an entire glossary of words you’ll want to become familiar with.

Consolidation: You may be able to combine your Direct Federal student loans into one consolidated loan, which could mean one payment that may be less than the payments for each loan separately. Consolidating loans may also extend your loan period, which could mean lower payments but more interest being paid in the long run.

Default: If you fail to pay your student loans in accordance with the promissory note you signed when you accepted the loans, they will go into default. Consequences could include collection procedures, negative credit reporting, and more severe legal consequences.

Deferment: A deferment can allow you to postpone your federal student loan payments on a temporary basis if you meet certain criteria. Deferment reasons may include returning to school, unemployment, active service in the U.S. armed forces during war time and more. Direct Subsidized loans are not charged interest during deferment, while Unsubsidized loans will continue to accrue interest. Contact your loan servicer for more information.

Forbearance: For those who don’t qualify for deferment, forbearance is another method of temporarily reducing or suspending federal student loan payments. Reasons for forbearance may include financial hardship, illness, being called to active duty in the U.S. armed forces, serving in a medical residency or internship, and more.

Grace period: When you graduate, begin attending school less than half time, or drop out altogether, your student loans become due. You have an automatic six-month grace period before you have to begin repaying your Direct Federal student loans. Private loans may not offer such a grace period and PLUS loans do not have a grace period. The grace period begins the day you graduate, withdraw or carry a less-than-halftime class load.

Perkins Loans: These low-interest loans are available to undergraduate and graduate students with “exceptional” financial need through the school. The school is the lender and payments are made to the school. Not all schools have Perkins Loans available.

PLUS loan: This is a federal loan available to creditworthy graduate students and parents of dependent undergraduate students. Interest is charged and payable even while the student is in school.