How Can You Reduce Your Total Loan Cost Fafsa Quiz

Question: “Federal Student Loans.”

Answer:

Question: What document explains your rights and responsibilities as a federal student loan borrower?

Answer: Your Master Promissory Note: explains your rights and responsibilities as a federal student loan borrower.

Question: Which loan type provides interest subsidy, meaning Department of Education (ED) pays your interest while you’re in school, during your grace period, and during deferment?

Answer: Direct Subsidized: Loans provide interest subsidy, which means ED pays your interest while you’re in school, during your grace period, and during deferment.

Question: Who should you contact if you have trouble making payments once you leave school?

Answer: Your loan servicer if you have trouble making payments once you leave school.

Question: “How Much You can Expect to Borrow”

Answer:

Question: Who do you contact if you’ve already accepted more loan money than you need?

Answer: Your school’s financial aid office if you’ve already accepted or received more loan money than you need.

Question: What increases your total loan balance?

Answer: Both Interest accrual and interest capitalization increases your total loan balance.

Question: How can you reduce your total loan cost?

Answer: Any of the above. You can reduce total loan cost by making interest and principal payments while in school, making interest payments while in school, and make interest and principal payments during the grace period.

Question: “Prepare for Repayment after School”

Answer:

Question: Who do you contact if you have questions about repayment plans?

Answer: Your loan servicer if you have questions about repayment plans.