IDR Programs
Are you required to recertify your income each year for income driven repayment plans?
Yes, but if you gave your consent for us to access your federal tax information and you’re eligible for autorecertification, we’ll take care of automatically recertifying your plan on its recertification date.
What tool can you use to determine which student loan repayment plan will provide you with the payment amount, forgiveness, and other important information?
Since 2019, all new federal student loans are given out directly by the federal government through what program?
the Direct Loan Program
What is a temporary postponement of payment on a loan that is allowed under certain conditions and during which interest doesn’t accrue on subsidized loans called?
Deferment
Which income driven repayment plan:
- usually requires higher payments than other IDR repayment plans
- caps payments at 20% of your monthly discretionary income
- is the only IDR plan that is available to borrowers with Parent PLUS Loans if consolidated
- cancels any remaining balance on your loans after 25 years of payments.
ICR (Income-Contingent Repayment)
What loan program forgives remaining federal loans if you work in a public service job for 10 years and make 120 qualifying payments after you leave school?
Public Service Loan Forgiveness (PSLF)
What type of loan is are only available to undergraduate borrowers, is based on your financial need, and does not accrue on loans while you are in school or during grace periods or deferments?
Subsidized Loans
What is the statute of limitations on debt collection of federal student loans?
Federal student loans do not have a statute of limitations.
What is the method of getting your student loan out of default by making a certain number of consecutive, on-time payments to your loan holder called?
Loan Rehabilitation
Which Income Driven Repayment Plan:
SAVE (Saving on Valuable Education)
What is the loan forgiveness program that allows loans to be cancelled when your school misled or lied to you about important information about the program you would attend, the outcomes of graduates, the type of federal aid you’d receive, or they engaged in aggressive and deceptive recruitment?
Borrower Defense to Repayment
What type of loans are issued by a bank, lender, or other institution, are not backed by the federal government, and are made outside of the federal government programs?
Private Student Loans
DAILY
DOUBLE
Americans collectively owe how much money in student loan debts?
What is a temporary stop to making your monthly student loan payments or temporarily make smaller payments called?
Forbearance
Which Income Driven Repayment Plan:
- is the only income-driven repayment plan available to borrowers with FFEL loans.
- is a good option for FFEL borrowers who don’t consolidate their loans into a Direct Consolidation Loan and for some borrowers with graduate school loans who cannot enroll in PAYE after July 1, 2024
- Caps payments at 10%-15% of your monthly discretionary income depending on when you took the loan.
- Cancels remaining debt in 20-25 years depending on when you took the loan
IBR (Income-Based Repayment)
What is the loan forgiveness program that allows loans to be cancelled if your school closed and you did not complete your program there?
Closed School Discharge
What type of loans do not require you to show financial need, are available to undergraduate and graduate school students, but interest accrues while you are in school and is added to your principal balance if it’s not paid each year.
Unsubsidized Loans
How many Americans have student loan debt?
Nearly 45 million people have student loan debt.
What is Loan Consolidation?
Consolidation is taking out a new loan that pays off your existing loans.
Which income based repayment program:
-Caps payments at 10% of your monthly discretionary income.
- Guarantees payments will never be higher than what you would pay under the ten-year Standard Repayment Plan.
- is abetter option than SAVE for some borrowers with graduate school debt who would benefit from the 20-year cancellation period.
- cancels remaining loan balance after 20 years of repayment.
PAYE (Pay As You Earn)
What is the loan forgiveness program that allows loans to be cancelled if you have a serious disability that generally prevents you from working?
Total and Permanent Disability Discharge
This type of loan is a federal loan that graduate or professional students and parents of dependent undergraduate students use to help pay for education expenses.
Direct Plus Loans
What four collection powers does the federal government have that other lenders do not have?
The government can:
seize your tax refunds,
take Social Security benefits
make you ineligible to receive additional aid
garnish your wages without court order (up to 15% of disposable income.
*your wages cannot be reduced below an amount equal to 30 times the federal minimum wage ($7.25 per hour currently), which means you must be left with at least $217.50 per week.)
Undue Hardship (in terms of student loans) is characterized by what 3 factors?
Present Ability to Pay
Future Ability to Pay
Good Faith Effort to Repay