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Student Loan Counseling & Education Debt Flashcards

7 cards from real CCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Student Loan Counseling & Education Debt flashcards as text

  1. Under the Public Service Loan Forgiveness (PSLF) program, how many qualifying payments must a borrower make before their remaining balance is forgiven?

    Answer: 120 payments

    PSLF requires 120 qualifying monthly payments (equivalent to 10 years) while working full-time for a qualifying employer before forgiveness is granted.

  2. Which income-driven repayment plan, available only to borrowers who are new borrowers as of October 1, 2007 with new loans as of October 1, 2011, caps payments at 10% of discretionary income?

    Answer: Pay As You Earn (PAYE)

    Pay As You Earn (PAYE) caps payments at 10% of discretionary income and requires borrowers to be new borrowers meeting specific eligibility criteria.

  3. For new IBR borrowers who first borrowed on or after July 1, 2014, what percentage of discretionary income is the monthly payment capped at?

    Answer: 10%

    New IBR borrowers (first loan on or after July 1, 2014) have payments capped at 10% of discretionary income, compared to 15% for older IBR borrowers.

  4. How is 'discretionary income' defined for purposes of federal income-driven repayment plan calculations?

    Answer: Adjusted gross income minus 150% of the federal poverty guideline for the borrower's family size and state

    For most IDR plans, discretionary income is defined as the borrower's AGI minus 150% of the federal poverty guideline for their family size and state of residence.

  5. A borrower with only Parent PLUS Loans wishes to enroll in an income-driven repayment plan. What must they do first?

    Answer: Consolidate the Parent PLUS Loans into a Direct Consolidation Loan to access Income-Contingent Repayment (ICR)

    Parent PLUS Loans are excluded from most IDR plans; however, if consolidated into a Direct Consolidation Loan, the resulting loan becomes eligible for Income-Contingent Repayment (ICR).

  6. The Teacher Loan Forgiveness program can forgive up to what maximum amount in Direct or FFEL loans after five years of teaching in a qualifying low-income school?

    Answer: $17,500

    Eligible teachers can receive up to $17,500 in Teacher Loan Forgiveness, with highly qualified math, science, or special education teachers qualifying for the full amount.

  7. Under the SAVE plan (formerly REPAYE), after how many years are remaining balances forgiven for borrowers who originally borrowed only for undergraduate studies?

    Answer: 20 years

    Under the SAVE plan, borrowers with only undergraduate loans receive forgiveness after 20 years, while those with any graduate loan debt receive forgiveness after 25 years.