Federal Student Loan Repayment

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BlitheRubellite
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Which of the following repayment plans has fixed or graduated payments over 25 years?

Extended repayment plan

What is the purpose of loan consolidation?

To simplify loan repayment

What options are available to help keep your loans in good standing if you're having trouble making payments?

Change your payment due date

Which of the following actions can help you avoid defaulting on your student loan?

<p>All of the above</p> Signup and view all the answers

What happens if you default on your student loan?

<p>Your loan becomes delinquent</p> Signup and view all the answers

What is the purpose of a promissory note?

<p>To agree to repay the loan according to its terms</p> Signup and view all the answers

Which of the following tax breaks is available for student loans?

<p>All of the above</p> Signup and view all the answers

Which of the following is true about the grace period for federal direct loans?

<p>The grace period is 6 months after graduating or dropping below half-time enrollment</p> Signup and view all the answers

Which repayment plan has fixed payments over 10 years?

<p>Standard repayment plan</p> Signup and view all the answers

What is the purpose of loan consolidation?

<p>To simplify repayment by combining multiple loans into one</p> Signup and view all the answers

What is the purpose of a Direct Consolidation Loan?

<p>To simplify the repayment process by combining multiple student loans into one</p> Signup and view all the answers

What happens if your student loan becomes delinquent?

<p>Delinquency is reported to the 3 credit bureaus</p> Signup and view all the answers

What happens if you default on your student loan?

<p>Your loan goes into default</p> Signup and view all the answers

What is the purpose of the American Opportunity Tax Credit (AOTC)?

<p>To claim a tax credit up to $2500</p> Signup and view all the answers

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