Date of Last Activity - Every account has a date of last activity which is essentially the last time money was sent to that account. Note that sending ANY money to a debt resets the statute of limitations on the account and so can give collectors several more years to collect a debt!

Deactivation - Loss of eligibility for a lender to participate in the FFELP. Since December 1994, the Department of Education has notified lenders that have failed to submit an ED Form 799 for two consecutive quarters that they are candidates for deactivation.

Dear Partner Letter (DPL) - A communication from DOE that explains and clarifies DOE's guidance regarding federal regulations and statutes. Previously known as the Dear Colleague Letter (DCL).

Debt Consolidation/Debt Pooling – Essentially the same as Consumer Credit Counseling but a little less harsh to your credit. Our debt consolidation program allows you to keep one debt out of the program and has no prepayment penalty.

Debt Consolidation Loan - Debt Settlement- Many creditors are willing to settle a debt for less in order to avoid legal fees and to get the debt off their books. With our debt settlement program we take the calls from creditors and do the settling for you, saving you thousands of dollars. Call today for a free quote. Debt settlement in combination with credit repair is an excellent way to rapidly improve your credit standing.

Debt-Management Counseling - Counseling provided to a student about debt and accumulated indebtedness. Counseling is required both before the student receives the first disbursement of the student's first loan-often referred to as entrance counseling, and when the student is scheduled to complete an academic program-commonly referred to as exit counseling.

Default - The failure of a borrower (or endorser, if any) to make installment payments when due, or to meet other terms of the promissory note or other written agreement(s) with the lender under circumstances where the Department of Education or guarantor of the loan reasonably concludes that the borrower no longer intends to honor the borrower's obligation to repay a loan, provided that this failure persists for the most recent consecutive 180-day period (for a loan repayable in monthly installments) or the most recent 240-day period (for a loan repayable in less frequent installments).

Deferment - A period of time during repayment in which the borrower, upon meeting certain conditions, is not required to make payments of loan principal.

Delayed Delivery - The federally mandated delay in the delivery of the first disbursement of loan funds for first-year, first-time undergraduate Stafford loan borrowers. Delivery of the first disbursement must be delayed until the student has completed the first 30 days of the loan period for which the loan was intended. Schools that maintain a 10% cohort default rate for three years are exempt (See chapter 6, page 23 of the July 2001 Common Manual).

Delayed Disbursement - See Delayed Delivery

Delinquency - A period that begins on the day after the due date of a payment when the borrower fails to make the equivalent of one full payment.

Department of Education, (DOE or ED) - The U.S. Department of Education.

Dependent Student - A student who does not meet the eligibility requirements for an "Independent Student," under the Higher Education Act of 1965, as amended. See Independent Student.

Derogatory Item - Negative items on your credit report. These include collections, late payments, bankruptcies, judgements, charge-off’s, etc. Derogatory items lower your credit score, the more recent they are the more the penalty.

Diligent Effort - An attempt to perform a required activity in a matter that complies with federally mandated procedures and requirements.

Direct Loan - The Direct Loan program is formally named the William D. Ford Direct Loan Program and is offered directly by the DOE. This program competes with the FFELP program and against private lenders.

Disability - A medically determined condition that renders a person unable to work and earn money, or to attend school. A borrower (or his spouse or dependent) is considered to be temporarily totally disabled if the condition is expected to be of a short and finite duration; a borrower is considered totally and permanently disabled if this condition is expected to continue for a long or indefinite period of time.

Disbursement - The transfer of loan proceeds by individual check, master check, or electronic funds transfer (EFT) by a lender to a borrower, a school, or an escrow agent. For a Consolidation loan, disbursement is the transfer of borrower loan proceeds from the consolidating lender to the current holder of the loan being consolidated.

Disbursement Date - For a loan disbursed by check or draft, the date the check or draft is issued. For a loan disbursed by electronic funds transfer (EFT) or wire transfer, the date the funds are transferred from the lender to the school or escrow agent.

Discharge - The release of a borrower from a loan obligation due to the borrower's bankruptcy, the closing of a borrower's school, the borrower's (or student's) death, the borrower's total and permanent disability, or the school's false certification of the borrower's eligibility for a FFELP loan.

Disclosure Statement - A statement of the total cost of a loan including relevant data such as loan amount, interest rate, projected maturity and any additional finance charges.

Disposable Income - That part of a borrower's compensation from an employer and other income from any source that remains after the deduction of any amounts required by law to be withheld, or any child support or alimony payments that are made under a court order or legally enforceable written agreement. Amounts required by law to be withheld include, but are not limited to, federal and state taxes, social security contributions, and wage garnishment payments.

Documentation - A written or printed paper, a supporting reference, or a record that can be used to furnish evidence, proof, or information.

Due Diligence - The procedures required for attempting to satisfactorily resolve a delinquency and prevent a default in accordance with federal regulations. The lender must document the performance of these attempts, and the attempts must be at least as forceful as those generally used for consumer loans.