ICA/Location Cure - See Intensive Collection Activities

Incarcerated - The status of a borrower who is serving a criminal sentence in a federal, state, or local penitentiary, prison, jail, reformatory, work farm, or other similar correctional institution. A borrower who is living in a half-way house or in home detention or who has been sentenced to serve only weekends is not considered to be incarcerated.

Income-Contingent Repayment Schedule - A repayment schedule for some FDLP loans under which the borrower's monthly payment amount is adjusted annually, based on the total amount of the borrower's Direct loans, the borrower's family size, and the Adjusted Gross Income reported on the borrower's most recent income tax return. In the case of a married borrower, who files a joint income tax, the AGI includes the spouse's income.

Income-Sensitive Repayment Schedule - A repayment schedule for some FFELP loans under which the borrower's monthly payment amount is adjusted annually, based solely on the borrower's expected total monthly gross income received from employment and other sources during the course of the repayment period.

Independent Student - A student who meets one or more of the following criteria: an individual who is at least 24 years old by December 31 of the award year. An orphan or ward of the court. A veteran of the U.S. Armed Forces. A graduate or professional student. A married person. An individual with legal dependents other than a spouse. A student for whom the school's financial aid administrator determines and documents the student's independent student status based on the administrator's professional judgment of the student's unusual circumstances.

Ineligible Borrower - A borrower who does not meet federal eligibility criteria for a Federal Stafford loan or, in the case of a parent borrower, a Federal PLUS loan.

In-School Period - The time during which a student is enrolled on at least a half-time basis at a participating school.

Installment debt - An installment debt is a debt in which you pay towards a fixed amount. Mortgages, student loans, and car financing are typical examples.

Institution - Generally refers to a school participating in the Title IV programs.

Institution of Higher Education - A school that admits as a regular student only a person who has a certificate of graduation from a secondary school or a recognized equivalent or has demonstrated the ability to benefit from the school's education or training program by passing a federally approved standardized test, is legally authorized in each state in which it is physically located to provide, and provides within that state, a program of postsecondary education that awards an associate, bachelor's, graduate, or professional degree or provides a program of not less than two years in length that is acceptable for full credit toward such a degree or training program of at least one year that leads to a certificate, degree, or other recognized credential and prepares students for gainful employment in a recognized occupation and is a public or other nonprofit school and is accredited by a nationally recognized accrediting agency or association approved by the U.S. Department of Education for this purpose, or if not so accredited, is a school that the Department of Education determines will meet the accreditation standards of such an agency or association within a reasonable period of time.

Institutional Student Information Record (ISIR) - An electronic version of the Student Aid Report (SAR), which is sent to the school.

Insurance Premium - See Guarantee Fee

Intensive Collection Activities (ICA) - A series of collection activities performed within an abbreviated time frame. Performance of the activities within the time frames prescribed reestablishes the guarantee on loans on which the lender's noncompliance with due diligence requirements has resulted in the cancellation of the guarantee.

Interest - The charge made to a borrower for use of a lender's money.

Interest Benefits - See Federal Interest Benefits

“Interest Only” - An interest only mortgage is one in which the loan holder only pays interest on the debt and no principal at all. This type of loan is good for investors and others who want to keep the payments low for a short time. The problem is that these loans are often ARM’s and can cause trouble down the road for those who are unprepared.

Interim Period - The period during which a Stafford loan borrower is in the in-school or grace period. If the borrower returns to school before the grace period is fully used, the borrower continues to qualify for in-school status and to be considered in the interim period.

Invalid Telephone Number - For purposes of lender due diligence requirements in the collection of loans, a functioning telephone number that has been assigned to someone who has no knowledge of or relationship with the borrower.

Investor - A real estate investor is a person who buys and sells properties for profits. Investors can help people in distress in ways banks cannot. It is good to speak with an investor to help you solve your real estate problems. Investors can save you time, money, and destruction of your credit. There are many ways in which real estate can be a win-win for buyers and sellers.

Invoice - Refers to the Insurance Premium Fee Billing invoice that EDFUND sends to lenders and services at month-end. When applicable, lenders and services are invoiced monthly for insurance (guarantee) fees associated with refunds (returns of Title IV aid), paid-in-full returned checks, disbursements and refund reversals.

IRS Offset - An interception by the U.S. Internal Revenue Service (IRS) of the income tax refund of a borrower with a defaulted FFELP loan. The amount offset-less a processing fee-is forwarded to the Department of Education by the guarantor and ultimately applied to the defaulted loan.

ISIR - See Institutional Student Information Record