Loan Repayment Question and Answers

Question 1

The subsidized loan's outstanding interest is covered by the federal government while...

Accepted Answer

All of the above

Answer

Deferment

Answer

In-School

Answer

Grace Period

Question 2

When the borrower has applied the following to his or her federal student loan, the government will cover any outstanding interest for the first three years on a subsidized federal student loan:

Accepted Answer

Income-Based Repayment

Answer

Forbearance

Question 3

Which payment plan with the servicer will apply to the account if a student doesn't respond to a letter from the servicer warning that the IBR on his or her account will expire in 45 days and a new plan is necessary when the IBR is about to expire?

Accepted Answer

Standard Repayment Plan

Answer

Extended Repayment Plan

Answer

Graduated Repayment Plan

Question 4

True/False: A student's repayment strategy is subject to alter once a year.

Accepted Answer

True

Answer

False

Question 5

True or False: To be eligible for the Graduated Repayment Plan, a student must be a graduate student.

Accepted Answer

False

Answer

True

Question 6

The servicer can approve and submit the following repayment options over the phone.

Accepted Answer

Graduated Repayment Plan

Answer

Income-Based Repayment Plan

Question 7

DERP is an acronym for...

Accepted Answer

Date Enter Repayment

Answer

Deferment Ends Repayment Plan Starts

Answer

Deferment Economic Repayment Plan