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<strong>Default Fee</strong> – A loan program fee required by the Deficit Reduction Act of 2005 to offset the risk of default and its subsequent costs. All Stafford and PLUS Loans guaranteed on or after July 1, 2006 must be assessed a one percent default fee. The fee either must be deducted from the borrower' s loan proceeds at the time of disbursement or paid by a third party from other non– federal sources (such as a lender or servicer). Also referred to as DFee and/or FDF.
<strong>Assignment of a loan</strong> – Any change in the ownership of a loan.
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<strong>DE</strong> – U.S. Department of Education, which may also be referred to as ED, USDE, or simply the Department.
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