If you struggle to repay your student loans, consolidation can make repayment easier. Forbearance or deferment can reduce or suspend payments, or you might qualify for debt forgiveness.
Watch the video to learn more about Forgiveness, Forbearance and Deferment, then test your knowledge at the end of the lesson.
A Direct Consolidation Loan can consolidate your federal student loans, as long as you have at least one Direct or FFEL loan included.
A. True
B. False
Forbearance can temporarily reduce student loan payments while interest still accrues. In order to qualify, you need to:
A. Prove that the payments are excessively high relative to your income
B. Submit a hand-written letter explaining your financial hardships in detail
C. Have a credit score of 650 or above and no other outstanding debts
D. Provide college transcripts and reports with average 3.0 GPA or above
What can you expect to happen if you default on your student loans?
A. Collection actions like lawsuits
B. Significant credit penalties
C. Possible wage garnishment
D. All of the above