Title: Explain the repayment process for student loans.
Course: Economics and Personal Finance (19262-I) > Section: Financing Education after High School

Explanation should include demonstrating an understanding of

- how the repayment amount is determined

  - type of loan
  - amount borrowed
  - interest rate

- options for a repayment plan that consider a borrower’s income
- when loans become due
  - loan payments usually begin after one withdraws from  college or drops below half-time enrollment
  - most loans have a grace period before repayment must begin
  - repayment of PLUS loans begins with disbursement of the funds

- the difficulty in cancelling student loans
- options for borrowers who cannot pay (e.g., deferment, forbearance, loan consolidation)
- consequences of loan default and collections, including the effect on a borrower’s credit report and the ability of the federal government to garnish wages and federal tax refunds
- student loan default rates of postsecondary institutions in Virginia
- possibility for loan forgiveness.