CPSO

Which repayment plan listed below could give a student borrower the option to have a lower initial monthly payment that will gradually increase over time?

NOT Income-based repayment plan NOT Extended repayment plan

If a student has received a Direct Subsidized and/or Direct Unsubsidized loan, when would his/her payments potentially begin if the student graduated, withdrew from school, or dropped below half time enrollment?

Payments begin in six months

Which repayment plan listed below could give a student borrower the option to make a fixed monthly payment over a ten-year period?

Standard repayment plan

What is a loan servicer?

An organization that manages loans and collects payments on behalf of a lender

Which repayment plan listed below could give a student borrower the option to lower his/her monthly payment by extending payments over a longer period of time?

Extended repayment plan

Where would a student borrower be able to locate information regarding his/her federal loan servicer?

From the NSLDS.ed.gov website

Which repayment plan listed below could give a student borrower the option to tie his/her monthly payment to his/her income?

Income-based repayment plan

What is the purpose of forbearance?

It is a way for a borrower to postpone or reduce his/her monthly payment for a limited period of time

Who should a student borrower contact if he/she needs assistance managing his/her federal loans

Loan Servicer

What are the reasons for a student borrower to consider postponement of a federal student loan?

Unemployment Returning to school Military Service