CCC Student Loan Counseling & Education Debt 1

Question 1

Which federal agency administers the federal student loan program?

Accepted Answer

The U.S. Department of Education

Answer

The U.S. Department of Education oversees and administers all federal student loan programs, including Direct Loans.

Question 2

What is the key difference between a Direct Subsidized Loan and a Direct Unsubsidized Loan?

Accepted Answer

The federal government pays the interest on subsidized loans while the borrower is enrolled at least half-time

Answer

On Direct Subsidized Loans, the government pays the interest during in-school, grace, and deferment periods; on Unsubsidized Loans, interest accrues and is the borrower's responsibility.

Question 3

What is the combined annual borrowing limit for a first-year dependent undergraduate student for Direct Subsidized and Unsubsidized Loans?

Accepted Answer

$5,500

Answer

First-year dependent undergraduates may borrow up to $5,500 combined ($3,500 subsidized maximum) in Direct Loans per academic year.

Question 4

Direct PLUS Loans are available to which borrowers?

Accepted Answer

Graduate or professional students and parents of dependent undergraduates

Answer

Direct PLUS Loans are available as Grad PLUS Loans to graduate/professional students and as Parent PLUS Loans to parents of dependent undergraduates.

Question 5

What is the aggregate (lifetime) Direct Loan borrowing limit for dependent undergraduate students?

Accepted Answer

$31,000

Answer

Dependent undergraduate students may borrow a maximum of $31,000 in Direct Loans over their entire undergraduate career ($23,000 subsidized maximum).

CCC Practice Test

CCC Practice Test

CCC Student Loan Counseling & Education Debt 1