Reauthorization - Refers to the legislative process-generally carried out every 5 years in the case of the Higher Education Act-whereby Congress reviews and either renews, terminates, or amends existing programs. The most recent reauthorization of the Act, as amended, was in 1998.

Recall (of a claim) - A lender request that the guarantor return a default claim that has already been filed before claim reimbursement because the claim no longer qualifies for default.

Recognized Equivalent of a High School Diploma - A General Education Development (GED) Certificate or a state certificate received by a student after the student has passed a state-authorized examination that the state recognizes as the equivalent of a high school diploma.

Record - With respect to recordkeeping requirements for lenders and schools, official information or data relating to a borrower's loan account or file that can be used as evidence.

Refund - The difference between the amount the borrower paid toward institutional charges (including financial aid and/or cash paid) and the amount the school can retain under the appropriate refund policy. This "unearned" amount of institutional charges must be returned to student financial aid (SFA) programs on behalf of a student who received SFA funds and who has ceased attending school.

Regulation B - The section of the Equal Credit Opportunity Act (12 CFR 202) that prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, or age.

Rehabilitation (of a defaulted loan) - A process by which a borrower may bring a FFELP loan out of default by adhering to specified repayment requirements.

Reinstatement (of borrower Title IV eligibility) - A process by which a borrower with a defaulted FFELP loan may regain eligibility for Title IV aid by adhering to strict repayment requirements.

Reinstatement (of institutional eligibility) - Formal permission by the guarantor for a school, lender, or servicer whose eligibility to participate in the guarantor's programs has been terminated to resume participation after meeting specific conditions.

Release of Proceeds - Delivery of loan proceeds by the school to the borrower. Release of proceeds is not disbursement of proceeds by the lender. See Disbursement

Repayment Period - The period during which interest accrues on the borrower's loan and principal payments are required. For FFELP loans, the repayment period excludes any period of authorized deferment or forbearance; however, interest will continue to accrue during these periods for unsubsidized Stafford, SLS, and PLUS loans.

Repayment Schedule - The legal addendum to the Promissory Note stating the terms of loan repayment and fulfilling disclosure requirements. The Repayment Schedule is a plan that indicates the total principal and interest due, an installment amount, and the number of installments required to pay the loan in full. The Repayment Schedule also contains the interest rate for the loan(s) included on the schedule, the due date of the first and subsequent installments, and the frequency of installments.

Repayment Start Date - The date the repayment period begins. For Stafford loans, repayment begins on the day following the last day of the grace period. For PLUS and SLS loans, repayment begins on the date the loan is fully disbursed.

Repossession - When a car loan is in default the collateral (the car itself) must be returned to the lender. When the buyer returns it himself it is a “voluntary repossession”, otherwise if they come and get it then it is involuntary. Both types hurt your credit badly and should be avoided if at all possible.

Repurchase (of a claim) - The lender's purchase back from the guarantor of a defaulted loan for which the lender has already been reimbursed by the guarantor.

Return of Title IV Funds - The federally mandated process by which a school calculates the amount of federal funds to be returned for a Title IV aid recipient who withdraws or who ceases attendance during a payment period or period of enrollment. See also Refund

Revolving Debt - Debts that fluctuate in amount due to usage are called revolving debts. Credit cards and lines of credit are revolving debts because the amount you pay is based on what you owe, both of which can change each month.

Rolling Delinquency - A delinquency that occurs whenever the delinquent status of a loan is increased or reduced but not completely eliminated as result of a payment, the reversal of a payment, a deferment or forbearance, or the receipt of a new out-of-school date.

Rule of 78s - A procedure for calculating the outstanding principal balance of a loan that is prohibited for loans made to a borrower who entered repayment on or after June 26, 1987. Seventy-eight is the sum of the digits from one to twelve (the number of months in a one-year installment contract).