medium · Asset-Backed Securities
In student loan ABS modeling, what is a 'PIF' (Paid In Full) and how does it differ from a standard monthly payment?
- A 'PIF' is a payment made by the guarantor, while a monthly payment is made by the borrower.
- A 'PIF' is a 'Payment in Forbearance', representing a partial payment made during a hardship period.
- A 'PIF' is a total loan payoff (prepayment), while a monthly payment is the scheduled amortization of principal and interest.
- A 'PIF' only includes the principal balance, whereas monthly payments include interest.
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