Student loans

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What is the main difference between Direct Subsidized Loans and Direct Unsubsidized Loans?

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The government pays interest on subsidized loans while you are in school, but not on unsubsidized loans.

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Who can receive Direct Subsidized Loans?

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Only undergraduate students with financial need.

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What is the purpose of a Master Promissory Note (MPN)?

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To agree to the terms and repayment of your student loan

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What happens to the interest on a Direct Unsubsidized Loan while you are still in school?

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It accrues, but you are responsible for paying it.

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What is the maximum amount a first-year dependent undergraduate student can borrow in federal loans?

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$5,500, with up to $3,500 in subsidized loans

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What is the grace period for federal student loans before repayment begins?

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6 months

Front

Which of the following statements about loan repayment is true? You must begin repaying your loans as soon as you take them out, There is only one standard repayment plan available, You can apply for deferment or forbearance if you are unable to make payments, If you miss a payment, your loan is automatically forgiven

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You can apply for deferment or forbearance if you are unable to make payments.

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How do you apply for federal student loans?

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By submitting a Free Application for Federal Student Aid (FAFSA).