PREFACE
Considerations
Organization of Content
Questions
PREPARE
Talk With Your Family and Others
Suggestions
How do I meet the costs of college?
As I prepare for college, can I find out now how much federal student aid I might get?
Who can get federal student loans?
Do all schools participate in the federal loan program?
How are federal student loans different from private loans?
Can my parents get a loan?
What are the eligibility requirements for PLUS Loans?
APPLY
RECEIVE
Your Award Letter
Review the financial aid award letter you receive from each school
What should I consider?
Before you accept any aid
What should I do now?
How and when do I receive the money from my federal student loans?
What can I use my federal student loan money for?
I don't need to borrow all this money. Can I return some of it?
What if I still need more money? Where should I look?
Graduate With Less Debt
Manage your money and change your spending habits
Keep Track of How Much You're Borrowing
Other things to remember
Borrower's Rights and Responsibilities
REPAY
What You Need to Do
Exit counseling
Why is the amount the school told me I must repay
more than the amount I actually received?
Interest
What is the interest rate on my federal student loan?
How is interest calculated?
How are loan payments applied to my loan balance?
Repayment Options
When choosing a repayment plan, what are my options?
Why do I have an outstanding balance?
Can I do anything to lower my monthly payments?
Are there any repayment incentive benefits?
What are Internal Revenue Service (IRS) tax credits?
Consolidation Loans
Should I consolidate my loans?
How can consolidation help me manage my debt?
Is there a downside to consolidation?
Making Your Monthly Payments
What if I've forgotten what type of loan I have and who my loan holder is?
What if I forgot to send a payment or can't send the full monthly amount?
Should I send a partial payment?
What if I can't make my payments?
Why is missing a payment a problem?
What is a deferment?
What is forbearance?
Loan Discharge or Forgiveness
What qualifies my loan for discharge?
What qualifies my loan for forgiveness?
Where can I learn more?
Glossary
Don't Default
FIGURES
Figure 1 Federal Student Loans vs. Private Loans
Figure 2 Maximize Sources of Aid You Don't Have to Repay
Figure 3 Interest Rate Reductions for Subsidized Loans
Figure 4 Estimated Monthly Payments for Direct and FFEL Stafford Loans
Figure 5 Sample Communication Log
APPENDICES
Appendix A What types of federal student loans are there?
Appendix B Sample FAFSA4caster Award Scenarios
Appendix C How much can I borrow?
Appendix D Informed Borrowing: Selecting Loans and Selecting Lenders
Appendix E Borrower Rights and Responsibilities
Appendix F If You Need to Take a Break or Can't Go to School Full-Time
Appendix G Worksheet to Calculate Your Budget When You Graduate
Appendix H Perkins Loan Discharge and Cancellation Summary Chart
Appendix I Stafford and PLUS Loan Discharge or Cancellation and Forgiveness Summary Chart
