Last Date of Attendance (LDA) - The last day the student was physically present in class, as confirmed by the student's attendance records.

Late Charges - Charges that the lender may require the borrower to pay if the borrower fails to pay all or a portion of a required installment payment within 15 days after it is due. This charge may not exceed 6 cents for each dollar of each late installment.

Late Conversion - The scheduling of a Stafford, SLS, PLUS, or Consolidation loan borrower's first payment due date beyond the normal regulatory time limits for establishing that date on the regulatory time frames.

Late Disbursement or Delivery - A disbursement made by a lender or delivered by a school after the end of the loan period or the date on which the student ceased to be enrolled on at least a half-time basis.

LDA - See Last Day of Attendance

Leader, Summer Term - A summer term that comes at the beginning of a school's Scheduled Academic Year.

Lease Option - A “lease with option to buy”. This is a way a person with poor credit can “rent to own” a property. Typically a person with poor credit chooses to buy this way. The advantages are that a price is usually locked in for the buyer and that some of the monthly payment goes towards building equity in the property. Once the leasee’s credit has improved then he/she truly buys the property by taking out his/her own mortgage.

Leave of Absence - A break in enrollment, not including semester or spring break(s), that is requested by the student and sanctioned by the school. The leave of absence may be no longer than 60 days, and the student may be granted no more than one leave of absence during a 12-month period.

Legal Guardian - An individual appointed by a court to be a "guardian" of a person, and specifically required by the court to use his or her financial resources for the support of that person.

Lender Fee - A fee that the holder of the loan must pay to the Department of Education on any loan first disbursed on or after October 1, 1993. The fee is equal to 0.5% of the principal amount of the loan and is deducted from interest and special allowance due the lender. The lender remits the fee by making an entry on the ED Form 799 that results in an offset of the amount of quarterly interest and special allowance benefits due to the lender. The lender may not pass this fee on to the borrower.

Lender ID - A code assigned to a lender eligible to participate in the FFEL Program. It is assigned by the DOE.

Lender of Last Resort (LLR) - A lender (or guarantor, in some cases) that agrees to make a subsidized Stafford loan to an otherwise eligible borrower who has been unable to find a lender willing to make a loan.

Lender Participation Questionnaire for New Lenders - The application form that a lender must complete and return to the Department of Education before receiving approval to participate in the FFELP.

Lender's Request for Assistance (LRA) - A form or procedure by which a lender requests preclaims assistance from the guarantor. See Preclaims Assistance.

Limitation - The continuation of a school's eligibility to participate in the guarantor's programs, subject to compliance with special conditions or restrictions established by agreement with the Department of Education or the guarantor.

LLR - See Lender of Last Resort

Loan Assignment - See Assignment

Loan Period - The period of time for which a loan application is certified.

Loan Proceeds - The amount of loan funds that have been guaranteed.

Loan Transaction Statement - A guarantor report, also referred to as an enrollment update report, that provides enrollment updates to the lender.

Loan Transfer - A change in the identity of the party that owns a borrower's loan(s), or the servicer of the loan.

Loan Verification Certificate - The form used to verify loans to be included in a Federal Consolidation Loan. It is used to verify terms of the existing loans.

Location Cure (ICA) - See Intensive Collection Activities.

LVC - See Loan Verification Certificate.