Quiz 1

What does the NSLDS provide?

A comprehensive housing of a borrowers' federal student loan information

deferment

A deferment is a period during which repayment of the principal and interest of your loan is temporarily delayed.

How many types of income driven plans are there?

A. 10 B. 2 C. 4 D. 3

What are the four types of income driven repayment plans?

A. Revised Pay as you earn (REPAYE) B. Pay as you earn (PAYE) C. Income based replacement (IBR) D. Income contingent repayment plan (ICRP)

Income driven Loan plans

An income-driven repayment plan sets your monthly student loan payment at an amount that is intended to be affordable based on your income and family size.

Graduated Repayment Loan

Based on the assumption that you start with a lower-paying career but gradually increase your income, this plan begins with lower student loan payments, which increase about every two years. You'll have your loans paid off within 10 years.

When was the William D Ford Plan issued?

Before 2009. No new loans were issued under FFEL after July, 1 2010.

How does a borrower access NSLDS information?

Borrowers must provide the following information Name date of birth drivers licence ID number Social Security Number

There are two types of forbearances:

Discretionary Mandatory

What happens to a loan during deferment?

During a deferment, you do not need to make payments. What's more, depending on the type of loan you have, the federal government may pay the interest on your loan during a period of deferment.

FFEL?

Federal Family Education Loan

The government may pay the interest on your

Federal Perkins Loan, Direct Subsidized Loan, and/or Subsidized Federal Stafford Loan.

You can request a discretionary forbearance for the following reasons:

Financial hardship Illness

How much do Graduated Repayment Loans Grow in interest and how often?

Generally 17% of prior monthly payment every 24 months (2 years)

forbearance

If you can't make your scheduled loan payments, but don't qualify for a deferment, your loan servicer may be able to grant you a forbearance. With forbearance, you may be able to stop making payments or reduce your monthly payment for up to 12 months. Interest will continue to accrue on your subsidized and unsubsidized loans (including all PLUS loans).

Mandatory Forbearance

If you meet the eligibility criteria for the forbearance, your lender is required to grant the forbearance.

What happens to the interest on my loan during forbearance?

Interest will continue to be charged on all loan types, including subsidized loans. You can pay the interest during forbearance or allow the interest to accrue (accumulate). If you don't pay the interest on your loan during forbearance, it may be capitalized (added to your principal balance), and the amount you pay in the future will be higher.

Direct Subsidized Loans

Loans the Federal Government pays for while the student is in college or while the loan is in deferment. .

Direct Unsubsidized loans

Loans where Interest begins accruing for Direct Unsubsidized Loans as soon as the loan is taken out. issued to students who are able to make the monthly payments while in school.

How do I request a deferment?

Most deferments are not automatic, and you will likely need to submit a request to your loan servicer, the organization that handles your loan account. If you are enrolled in school at least half-time and you would like to request an in-school deferment, you'll need to contact your school's financial aid office as well as your loan servicer.

NSLDS

National Student Loan Database System

How do I request a forbearance? Is approval automatic?

Receiving loan forbearance is not automatic. You must apply by making a request to your loan servicer. In some cases, you must provide documentation to support your request.

Mirroring

The art of mirroring your prospects tone and vocal flow to subconsciously create a bonding connection.

10 Year repayment plan

The basic repayment plan for loans from the William D. Ford Federal Direct Loan (Direct Loan) Program and Federal Family Education Loan (FFEL) Program.

___________,____________ or _______________ about loans post graduation doesn't excuse borrowers from repayment.

Unhappiness Unemployment Unawareness

Consolidation

Unification of multiple loans to be paid by one flexible payment.

You can request a mandatory forbearance for the following reasons:

You are serving in a medical or dental internship or residency program, and you meet specific requirements. The total amount you owe each month for all the student loans you received is 20 percent or more of your total monthly gross income (additional conditions apply). You are serving in a national service position for which you received a national service award. You are performing teaching service that would qualify for teacher loan forgiveness. You qualify for partial repayment of your loans under the U.S. Department of Defense Student Loan Repayment Program. You are a member of the National Guard and have been activated by a governor, but you are not eligible for a military deferment. top

Where can you find how much and how much in federal student loans you've borrowed?

a. A colleges net price calculator b. The national student loan database system c. Your tax return d.Your parents

Which plan will let you stick with one monthly payment until your loans are paid?

a. Income based repayment b. Graduated repayment c. Pay as your earn d. The 10 year standard plan

Which of the following are not the benefits of student loan consolidation?

a. Making borrowers eligible for a certain repayment plan with loan forgiveness b. Getting out of default when rehabilitation is not available c Converting private loans to federal loans d. Extending loan repayment to lower the monthly

Which loan repayment plan is only available to recent borrowers?

a. Paye as you go b. Income contingent plan c. The standard 10 year repayment plan d. Student loan defermation

Your monthly earnings eat up one forth of your paycheck, and you work in a public service job. What might be the best repayment option for you?

a. Public service loan forgiveness b. The standard 10 year plan c. Ending forbearance d. income contingent repayment

Which one thing can nearly all borrowers do to reduce their federal loans?

a. Sign up for a income driven repayment plan b. Defer paying their student loans c. Sign up for automatic loans d. Consolidate their loans

True or False: You will be penalized for paying more than the monthly income minimum on your student loans.

a. True b. False

True or False? Once you choose a repayment plan-- You're locked in, even if you can't afford the monthly payments

a. True b. False

True or False? Extending loan repayment to 20 years or more can lower the monthly bill, but increase the total paid over the life of the loan?

a. True b. False

Your deferment request should be submitted to

the organization to which you make your loan payments.

The government does not pay the interest on

unsubsidized loans (or on any PLUS loans)

You MUST continue making payments on your student loan until?

you have been notified that your request for deferment or forbearance has been granted. If you stop paying and your deferment or forbearance is not approved, you will become delinquent and you may default on your loan.

discretionary forbearance

your lender decides whether to grant forbearance or not.