Student loan question?

Question

I withdrew from school last month, about 3 weeks after the start of the quarter. The school has told me that I will owe them (the school), and that after 6 months from the date of withdrawal I will need to begin repayment. What happens if I want to attend a different school next quater (January)? Does this restart the repayment clock? is it possible to be eligible for a loan again if going to a different school?

Thanks,

G

Answer 1

All schools have their own set of rules regarding how much you will owe them if you withdraw after a certain period of time. Check with your school's student handbook or talk with a counselor for specific details.

Regarding your loans - In general, you have a 6 month grace period after you leave school (withdrawal, graduation, etc.) before you have to start repaying. If you go back to school, you can apply for an in school deferment. Whatever is left of your grace period will be available after you leave the next college you attend.

So, if you leave school today and go back to school in 2 months, you will have 4 months left on your grace period after you finish at your next school... You will have a 6 month grace period on any new loans you take out at your new school.

You can take out new loans for the new school - up to the maximum amount you can borrow for that academic year. The Stafford loan has limit to the amount you can borrow as a freshman, sophomore, Junior and Senior. So if you were a frashman at your old school and borrowed the max available - you might not be able to borrow more as a freshman at your new school. If you hit your limit, check out alternative student loans programs. Check with your financial aid office at your new school to determine eligiblity and options.