FiCEP Student Loan Counseling 3

Question 1

To qualify for Public Service Loan Forgiveness (PSLF), a borrower must make how many qualifying monthly payments while working full-time for an eligible employer?

Accepted Answer

120 payments

Answer

60 payments

Answer

100 payments

Answer

240 payments

Question 2

After how many days of non-payment are federal student loans considered to be in default?

Accepted Answer

270 days

Answer

90 days

Answer

180 days

Answer

365 days

Question 3

Which of the following is an immediate consequence when a federal student loan enters default?

Accepted Answer

The entire outstanding loan balance becomes immediately due and payable

Answer

The interest rate is permanently reduced as a penalty adjustment

Answer

The loan is automatically forgiven after a three-year resolution period

Answer

Monthly payments are voluntarily suspended for 12 months by the servicer

Question 4

The Teacher Loan Forgiveness program offers eligible teachers up to how much in federal loan forgiveness after teaching for five consecutive years in a low-income school?

Accepted Answer

Up to $17,500

Answer

Up to $5,000

Answer

Up to $10,000

Answer

Up to $25,000

Question 5

What is federal student loan 'rehabilitation,' and how is it typically completed?

Accepted Answer

Making 9 voluntary, reasonable, and affordable monthly payments within 10 consecutive months

Answer

Consolidating all defaulted loans into one new Direct Consolidation Loan

Answer

Paying off the entire outstanding balance immediately in one lump sum

Answer

Applying for an administrative forbearance for 12 months to reset the default clock

Question 6

Which of the following is a key distinction between private student loans and federal student loans that a financial counselor must explain to clients?

Accepted Answer

Private loans lack federal borrower protections such as income-driven repayment options and forgiveness programs

Answer

Private loans consistently carry lower interest rates than all federal loan types

Answer

Private loans offer income-driven repayment plans and federal forgiveness programs

Answer

Private loans are owned and serviced by the U.S. Department of Education

Question 7

When a client first seeks financial counseling about their student loan debt, what should the counselor prioritize as the first step?

Accepted Answer

Conduct a comprehensive assessment of the client's income, expenses, loan details, and financial goals

Answer

Immediately advise refinancing all federal loans into a private loan for a lower rate

Answer

File for bankruptcy on behalf of the client to discharge the student loan debt

Answer

Enroll the client in all available income-driven repayment and forgiveness programs simultaneously