Understanding Student Loan Debt Collections

What major financial actions can the government take if your student loans are in default?

• Garnish wages and intercept tax refunds

• Seize your property

• Cancel your loan

• Increase your loan interest rate

How many people are currently in default on their student loans?

• 20 million

• 10 million

• 5.3 million

• 1 million

What is the Treasury Offset Program capable of doing?

• Providing loan forgiveness

• Taking up to 100% of your federal tax refund

• Extending your loan term

• Reducing your loan interest rate

What was a significant challenge for borrowers during the pandemic regarding their student loans?

• Increased interest rates

• Inability to apply for repayment plans

• Mandatory loan forgiveness

• Higher monthly payments

What is one argument made by supporters of the new collection efforts?

• It simplifies the loan process

• It reduces the national debt

• It provides immediate loan forgiveness

• It promotes accountability among borrowers

What is one potential change in student loan servicing mentioned in the video?

• Increasing loan interest rates

• Eliminating all student loans

• Moving loan servicing to the Small Business Administration

• Providing universal loan forgiveness

What is loan rehabilitation?

• A method to consolidate multiple loans

• A process to make nine on-time payments to remove default status

• A way to defer payments indefinitely

• A program to increase your loan amount

What can consolidation help you achieve with your student loans?

• Forgive your loan

• Combine defaulted loans into a new loan

• Increase your loan amount

• Lower your interest rate

What should you do if you receive a notice about your social security benefits being at risk?

• Ignore the notice

• Appeal the decision

• Pay off your loan immediately

• Request a loan increase

What is a long-term consequence of ignoring student loan default?

• Lower interest rates

• Immediate loan forgiveness

• Higher credit score

• Default remaining on your credit report for 7 years