Student Loan question

[Zysoclaplem]

I took the semester off this spring, and in june of this year I will have been out of school for 6 months. I plan to go back in the fall.
I received a letter saying that I will have to begin paying back my student loan come June.
If I enter school again in August, will those loans once again have the interest paid by the government and be deferred until 6 months after I leave/graduate school?

 

[YetioDoom]

Originally posted by: Zysoclaplem
I took the semester off this spring, and in june of this year I will have been out of school for 6 months. I plan to go back in the fall.
I received a letter saying that I will have to begin paying back my student loan come June.
If I enter school again in August, will those loans once again have the interest paid by the government and be deferred until 6 months after I leave/graduate school?

That's how it worked for me. Contact your lender.

 

[AgentJean]

You may have to make a payment for June but then it all gets put on hold when you start class again.

Contact your Lender

 

[Tiamat]

as long as you do not exceed your 6 month grace period. You will have to fill out a in-school deferment. Talk with your Financial Aid person.

If you do exceed your 6 month grace period, i think you will have to make 1 or 2 payments before the in-school deferment comes into action.

 

[giantpinkbunnyhead]

It depends what school you're going to, but in most all cases... yes, the loan will re-enter deferment status. The issue is whether you have to take any action or not. Some schools are clearinghouse schools, which means they report all enrollee's to the financial aid centers and such deferrals happen automatically. Other schools don't do this and require you to fill out a deferment request. As recommended, a quick call to your FA office should clear it up in no time.

 

[Zysoclaplem]

Ok. I knew it would enter the period that I would have to pay for a few months. But I intended to go back in for the fall semester. I will talk to the lender. Just wanted to make sure it would go into deferment again.

 

[AndrewR]

You could also apply for a financial hardship deferment until you enter school again, assuming you don't have the money to pay. If you do, you're better off paying on the loan to avoid having the interest tacked onto your principal.

 

[msparish]

I believe the grace period is a one time thing. You have now used it, so when you graduate you will being repayment immediately. Any new loans will have a grace period.

 

[DAGTA]

Originally posted by: msparish
I believe the grace period is a one time thing. You have now used it, so when you graduate you will being repayment immediately. Any new loans will have a grace period.

Keep this in mind.

 

[Whisper]

Once you enter school, you'll need to re-apply (in most cases) for deferment on your loans. The loan provider will likely either contact the school themselves to verify enrollment, or will have you fax a copy of your transcripts/class schedule. Once that's taken care of, the payments will again be suspended.

I've gone through the process two or three times; it's not terribly stressful or difficult, and most of the loan providers are actually very reasonable in terms of their requests for proof of enrollment.

I'm not sure about the one-time grace period; that likely is a factor related to the type of loan, the individual provider, or both. I believe that for my first undergrad loan (subsidized stafford), I actually received two separate grace periods--one when I took a year off between transferring schools, and another after I graduated. For my second loan, I also used the initial grace period (after graduation), but then consolidated right before entering grad school, so I believe my consolidation loan will offer a new grace period once I'm finished here.

 

[msparish]

Originally posted by: Whisper
Once you enter school, you'll need to re-apply (in most cases) for deferment on your loans. The loan provider will likely either contact the school themselves to verify enrollment, or will have you fax a copy of your transcripts/class schedule. Once that's taken care of, the payments will again be suspended.

I've gone through the process two or three times; it's not terribly stressful or difficult, and most of the loan providers are actually very reasonable in terms of their requests for proof of enrollment.

I'm not sure about the one-time grace period; that likely is a factor related to the type of loan, the individual provider, or both. I believe that for my first undergrad loan (subsidized stafford), I actually received two separate grace periods--one when I took a year off between transferring schools, and another after I graduated. For my second loan, I also used the initial grace period (after graduation), but then consolidated right before entering grad school, so I believe my consolidation loan will offer a new grace period once I'm finished here.

Consolidation loans have no grace period at all.