Glossary beginning with I

i
Income

Income is the amount of money received from employment (salary, wages, tips), profit from financial instruments (interest, dividends, capital gains), or other sources (welfare, disability, child support, taxable Social Security, and pensions).

Income Contingent Repayment

Under an income contingent repayment schedule, the size of the monthly payments depends on the income earned by the borrower. As the borrower's income increases, so do the payments. The income contingent repayment plan is not available for PLUS Loans.

Independent Student

See Dependency Status

Individual Retirement Account (IRA)

The IRA is one of several popular types of retirement funds. It is not legal for a parent to borrow money from an IRA to help pay for their children's education.

Institutional Methodology

If a college or university uses its own formula to determine financial need for allocation of the school's own financial aid funds, the formula is referred to as the Institutional Methodology (IM). UNT uses Federal Methodology.

Institutional Student Information Report (ISIR)

The Institutional Student Information Report (ISIR) is the name for the electronic version of SARs delivered to schools by EDExpress.

Insurance Fee

The insurance fee is passed on by the lender to the federal government as insurance against default. The insurance fees are charged as the loan is disbursed, and typically run to 1% of the amount disbursed. See also Guarantee Fee.

Interest Interest

is an amount charged to the borrower for the privilege of using the lender's money. Interest is usually calculated as a percentage of the principal balance of the loan. The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan. As of October 1, 1992, all new federal loans use variable interest rates that are pegged to the cost of US Treasury Bills.

IRS

The Internal Revenue Service (IRS) is the federal agency responsible for enforcing US tax laws and collecting taxes.