Loan Basics
What do you fill out to get a student loan awarded to you from the school?
Free Application for Federal Student Aid (FAFSA)
What is a disbursement?
A disbursement is where the funds are sent to the student's school
True or False: Interest capitalizes on most deferments.
True
What are IDR payments based on?
Income
Family Size
State of Residence
Outside Student Loan debt
Spouse's Student loan debt if applicable
How long does the whole consolidation process take?
60-90 days
What type of loan does NOT accrue interest while in school at least half time, grace period, or on a deferment?
Subsidized Stafford Loan
True or False: A borrower can receive a second grace period for the same loan.
False
What type of forbearance is a FRAP?
Public Service Loan Forgiveness
How long is an IDR plan active for?
12 months
What loan program code is a Direct Unsubsidized consolidation loan?
D5
Who is the borrower for a Parent PLUS loan?
The Parent
What happens when the borrower's grace period ends?
The loan enters into repayment
How does one qualify for an In-School Deferment?
Must be enrolled at least half time at a Title IV school
Name the 4 Term Based repayment plans.
Standard
Graduated
Extended Standard/Level
Extended Graduated
True or False: One reason a borrower would want to consolidate is that they can receive more lower payment options.
True
What is a consolidated loan?
A consolidated loan is where a borrower will combine all of their student loans into one.
How many days delinquent must a loan be before it defaults?
361 days
Name the status code that is applied to an account when a borrower files for Bankruptcy?
FRAB
When would a FAWN be applied to an account?
Applied to accounts to allow time for processing
Applied to accounts when waiting on paperwork
What does LVC mean?
Loan Verification Certificate
What is different about obtaining PLUS loans?
They require a credit check
What happens to a Plus loan when it fully disburses?
It goes into repayment unless requested otherwise
What type of deferment does not accrue any interest while on it?
Cancer Treatment Deferment
If the borrower was on an active (PFH) PAYE plan what schedule would the IDR CLASS code show?
HP
Who is the consolidating servicer for Edfinancial?
Aidvantage