In order to defer student loan repayments, can I stay in school forever?

Question

I have done the math, and the cost of attending community college part time, would be less than the interest on my student loans.

Here is an example of my situation: Upon graduating, the annual interest on my subsidized student loans will be about $1,500 per year. The cost of attending part time (6 hours) at a local junior college works out to about $1,000 per year after costs of books, fees, etc. So, I would save $500 per year by attending junior college and deferring my interest.

Now it gets even better…

I can deduct only $2,500 a year in student loan interest. Based upon my total outstanding loans, I will have much more than that from only my unsubsidized loans. So, I would get no tax deductions from paying the interest on my subsidized student loans. However, if I go to junior college, I could deduct my education expense.

Now, I am not planning on never paying back my student loans. I hope to work, go to JuCo and pay my loans at the same time.

Comments?

Actually, half time enrollment leads to a deferment: see this link: http://studentaid.ed.gov/students/publications/repaying_loans/2003_2004/english/repayment-options-deferment.htm

Answer 1

If you're only in school part-time, your loans begin accruing interest.