Explain the repayment process for student loans.

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.