Lesson 11: Student Loan Repayment

Lesson 11:

Student Loan Repayment

LEARNING OBJECTIVES

Students will be able to:
● Identify steps they can take to prepare for student loan repayment

● Understand the different loan repayment options available

• Analyze sample graduate profiles and choose the repayment option that works best in the content of an individual’s situation

Open Ended

Use the image to the right, to support the statement, “It’s important to consider the reality of what it will take to repay your student loan debt BEFORE you even choose a college to attend.”

RESOURCE 2: GRADUATING? HERE’S WHAT

TO KNOW ABOUT STUDENT LOANS

On the next slide, Read the article, “Graduating?
Here’s What to Know About Student Loans,” from the
New York Times, to find out what you need to know
about student loan repayment when you graduate
college. After reading, answer the questions that
follow.

Graduating_ Here’s What to Know About Your Student Loans - The New York Times.pdf - Google Drive

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RESOURCE 3: STUDENT LOAN REPAYMENT PLANS

You have a number of repayment plans to
choose from based on your financial situation.
Take a look at a graphic from NerdWallet to learn
more.

Open Ended

Why is it a good idea to make interest payments for those loans that accrue interest during a grace period?

Dropdown

If you can make the monthly payments, the default plan, also known as the  ​

Select answer

Repayment Plan, is advisable because it keeps you on track to pay off your loans in 10 years and minimizes total interest.

Open Ended

Your friend chooses the Graduated Repayment Plan. What assumption is he making about his future income?

Open Ended

In your own words, describe the difference between loan consolidation and loan refinancing.

RESOURCE 4: COMPARE - WHICH

Choosing a proper repayment plan can only be
done in the context of each individual borrower,
their loan amount, their income, and their other
life factors. Open the Lesson 11 Activity and follow the directions on the worksheet to complete an activity on this very topic.

REPAYMENT OPTION IS BEST

RESOURCE 5: EXIT TICKET

Take the three question Exit Ticket to
assess what you have learned about
student loan repayment!

Multiple Choice

If you do not contact your loan servicer to select another option, your Federal student loans will default to standard repayment, which has a term of...

• 1 year

• 5 years

• 10 years

• 25 years

Multiple Choice

Susie is considering a graduated repayment plan, which means...

• Her monthly payments will start lower and end higher.

• She won't be charged any interest until she successfully graduates.

• Her payments will fluctuate with how much money she's earning every month.

• She will receive loan credits based on how high her GPA is when she graduates.

Multiple Choice

Which statement is TRUE regarding the 6-month time period after you graduate or otherwise leave from college?Lesson 11: Lesson Lesson 11:

• It’s known as “the default period”

• None of your student loans can be charged interest

• You don’t need to begin repaying your Federal student loans during this time

• It’s the only time you can re-enroll in college without paying any additional fees or tuition