For alternative summer loans do you not have to make any payments until you graduate?

Question

Finaidgirl really helped me out by answering my last question, hopefully she can answer this one too:) She was right about how I have to get my alternative summer loan from a different lender, but if I get this loan, is it like the others where I don't make any payments until after I graduate?

Answer 1

For alternative loans, the repayment terms vary greatly. Most educational loan lenders understand that particular feature (delayed repayment and, in some cases, a 6-month grace period after graduation) is the biggest "selling point.," so many do include that option.

Recall that I'm pretty sure this loan is offered by your school itself, which leads me to believe that (a) the terms are probably pretty attractive and (b) you probably won't need to repay it until later. That said, borrowing money is important decision, so you shouldn't make any assumptions.

It is my sincere hope that your school wouldn't offer you a loan without first disclosing the *terms* of that loan to you. Did you receive any paperwork on it? If so, the repayment information is probably in there. There are definitely some private loans out there that *don't* allow you to wait until you graduate (e.g. that begin repayment within 60 or 90 days). With other private loans, the student is given the *option* to begin repayment immediately or delay that repayment until graduation -- and in these cases you would need to specifically request it.

Give your school a call. Tell them that you have some questions about the loan you were offered. Get all the information you can -- asking lots of questions is never a bad thing when it comes to managing your finances. You might even ask them why they choose this loan program for you. Make sure they're keeping *your* best interests at heart.