Check Your Knowledge

What document explains your rights and responsibilities as a federal student loan borrower?

Your Master Promissory Note: explains your rights and responsibilities as a federal student loan borrower.

Who do you contact if you've already accepted more loan money than you need?

Your school's financial aid office if you've already accepted or received more loan money than you need.

Who do you contact if you have questions about repayment plans?

Your loan servicer if you have questions about repayment plans.

Who do you contact when it's time to enroll in a repayment plan?

Your loan servicer when it's time to enroll in a repayment plan.

How can you reduce your total loan cost?

Any of the above. You can reduce total loan cost by making interest and principal payments while in school, making interest payments while in school, and make interest and principal payments during the grace period.

What increases your total loan balance?

Both Interest accrual and interest capitalization increases your total loan balance.

Which loan type provides interest subsidy, meaning Department of Education (ED) pays your interest while you're in school, during your grace period, and during deferment?

Direct Subsidized: Loans provide interest subsidy, which means ED pays your interest while you're in school, during your grace period, and during deferment.

Which repayment plan will you be placed on automatically unless you change it by contacting your servicer?

Standard Repayment Plan

What percentage of your gross salary does the Consumer Financial Protection Bureau suggest your student loan payment be in order to be affordable and limit your risk of delinquency and default?

The Consumer Financial Protection Bureau suggests your student loan payment be no more than 8% of your gross salary.

Who should you contact if you have trouble making payments once you leave school?

Your loan servicer if you have trouble making payments once you leave school.