Skill Assessment Financial Aid

Correct answer is True.
You must make your monthly payment on your loan even if you don’t receive a bill or repayment notice.

Correct answer is True.
You can pay the interest that accrues while you are in school to prevent it from capitalizing or being added to your principal balance when you leave school.

Correct answer is True.
Although interest accrues, the federal government will pay the interest while you are enrolled at least half-time, during your grace period and during deferment periods.

Correct answer is True.
You may prepay all or part of your loan(s) without a penalty.

Correct answer is D
All of the above. You may apply for a deferment if you are enrolled at least half-time, unemployed, experiencing an economic hardship or if you are serving in the Peace Corps. You can check with your loan servicer to get a complete listing of all deferments that are available.

Correct answer is B
Federal Family Education Loan (FFEL) Program. Subsidized, Unsubsidized, PLUS and Consolidation Loans are made through one of the two U.S. Department of Education programs – the Direct Loan Program or the Federal Family Education Loan (FFEL) Program.

Correct answer is D
All of the above. Interest accumulates or accrues on all loan types – Subsidized, Unsubsidized and ParentPLUS.

Correct answer is B
$30,000. Under the terms of the extended repayment plan, you must have more than $30,000 in outstanding FFEL Program loans. This means if you have $35,000 in outstanding FFEL Loans and $20,000 in Direct Loans, you can choose the extended repayment plan for your FFEL Loans, but not for your Direct Loans.

Correct answer is B Summary of awarded Federal Student Loans and Grants.

The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.

Correct answer if False.
With this plan, the student's payments start out low and increase every two years. The length of the repayment period will be up to ten years. If the student expects his/her income to increase steadily over time, this plan may be right for him/her. The monthly payment will never be less than the amount of interest that accrues between payments. Although the monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment. There is no graduate status required for this repayment plan.

Correct answer is False.

The following conditions must be met in order to qualify:

1. Student must be diligently seeking but unable to find full-time employment in any field or at any salary or responsibility level even if student is not eligible for unemployment benefits (or if eligibility expired).
2. Student must be registered with a private or public employment agency if there is one within 50 miles of his/her permanent or temporary address. School placement offices and “temporary agencies” do not qualify as public or private employment agencies.
3. If student is requesting an extension of current unemployment deferment, and is not providing documentation of eligibility for unemployment benefits, s/he must certify that s/he has made at least 6 diligent attempts to find employment on the most recent 6 months by checking the box in Section 2, Item B.

Correct answer is True.
Under the FFEL Program, you can change repayment plans once a year.

Correct answer is True.
Consolidation is similar to refinancing a loan. A borrower can consolidate all, just some, or even just one federal student loan.

Correct answer is C
$50, 10. On the standard repayment plan, you generally pay a fixed amount of at least $50 each month for up to 10 years.

Correct answer is A
Not based on financial need. You are not required to have financial need to qualify for an unsubsidized loan.

Correct answer is C.
Regardless of whether at student received subsidized or unsubsidized funds, the Stafford Loan has a six-month grace period. If the student allows his/her six-month grace period to elapse after leaving school, the Stafford Loan will not be eligible to receive a new grace period in the future. However, if the student interrupts his/her initial grace period by going back to school, enroll in enough units to maintain at least half-time status in a qualifying course of study and file the appropriate student deferment form, s/he will be allotted another six-month grace period.

Correct answer is all of them.
There are serious consequences for defaulting on a student loan that include loss of being eligible to apply for a forbearance or deferment, having the account turned over to a collection agency, having your tax refunds offset or withheld and applied to the student loan, inability to obtain additional financial aid, or suspend professional licenses.

Correct answer is B
Reduce. You may postpone or reduce your monthly payment if you are temporarily unable to make your scheduled loan payments for reasons including financial hardship or illness.

Correct answer is Graduate and Extended Repayment Plan.
Most servicers prefer the processing of Graduated and Extended Repayment Plans to be processed via phone to ensure the student is provided with projected monthly payment adjustments to complete total loan payoff.

Correct answer is Deferment (DUEM & DHAR) and Income-Based Repayment.
The Federal Government will pay any unpaid interest on subsidized loan during authorized deferment periods.

If a student's monthly IBR payment amount does not cover the interest that accrues on his/her loans each month, the government will pay any unpaid accrued interest on the Subsidized Stafford Loans (either Direct Loan or FFEL) for up to three consecutive years from the date the student began repaying his/her loans under IBR.