My grace period has ended for my loans but I'm going back to school in the fall?

Question

Do I have to put my loans in deferment or would I have to pay them off while I'm in school? I plan on getting financial aid but I have absolutely no idea what to do with my current loan. Before I contact my lender I would like to know what I'm talking about so I don't get the run around.

Answer 1

It is always in your benefit to be knowledgeable about your situation before you contact your lender and get bounced around from department to department, I hope my assistance is helpful.

Since your Grace Period has ended on your Federal Student Loans you will go into Repayment status next. There are a couple options you could pursue at this point, one is using your Forbearance or Deferment time, and the second is Consolidating your Federal Student Loans.

Your Federal Student Loans carry with them 3 years of Forbearance and Deferment as well as unlimited in school Deferment as long as you are registered as a half-time student. Forbearance is granted at the Lender's discretion and is usually granted for 6 month intervals. What you have to remember about Forbearance is your interest accrues during this period on both your Subsidized and Unsubsidized Loans. Deferment is another option for you, but you must apply for and qualify for Deferment.

Another option you might consider is Consolidating your Federal Student Loans, not only to you lock in a low fixed interest rate and lower your monthly payments it takes about 3-6 weeks for your Consolidation to process giving you an additional 30 days where you don't have to pay after your process is complete. However, since your Grace Period has run out, you would probably have to go on Forbearance or Deferment (if you qualify) while your Consolidation is being processed if you are unable to make the payments that month.

For more information on Forbearance and Deferment please visit the source below.

Answer 2

Generally, as long as you are in school, you will not have to repay those loans. However, you will never get another 6 month grace period. You are not allowed another 6 months, if say, you take another break from school. This means that if you wanted to take even one month off of school for any reason, you must begin repaying your loans. You should contact the lender, however, as I am not sure of your agreement with them and they may ask something different of you. From what I know, however, you should not have to begin repayment while in school. Before I could take a loan, my school made me enter "loan counseling". Basically, they have a site that gives you more information than you'll probably care for on loans. I had to answer a few questions as well but the site was very helpful. Check out http://mapping-your-future.org if you're curious. It's a helpful site. Good luck!

Answer 3

This happened to me when I took a year and a half off from school. You just don't add on another school to your financial aid. You have to contact your lender and get the form for an in-school deferment.

Answer 4

Talk with your lender - as long as you are at least half-time you should be eligible for an in-school deferment.

This may happen automatically (if your school reports your enrollment status) but you should check with your lender to be sure. They may have a form or something for you to fill out as well).

Answer 5

If you have Stafford loans (federal loans) they will automatically defer once your school reports your enrollment. Just know that they still accrue interest, so it may be worth your while to pay $20 a month on them while you are in school. You can still get new loans to cover your school, then, when you are done, you should consolidate all your loans into one.