Loan Help

I've been accepted to a college and part of the aid they gave me is in the form of loans but I'm having a hard time understanding some things. (1). What does this mean "A net reduction of each disbursement results from an origination fee and an up-front rebate." (2). What does this mean "While enrolled, students have the option to either make quarterly interest-only payments or to defer and capitalize the interest as it accrues. Repayment of principal and new interest begins six months after the student graduates or drops below half-time enrollment."