<p>We were just told that if my child takes a leave of absence, his loans will be placed into immediate repayment. I was told previously by another person that if the leave is related to a medical issue and the student intends to return either the next semester or the next year, the loans would be placed into a "hold" mode for repayment. I understand there is a difference between withdrawing entirely and taking a leave but is it irrelevant in terms of loan repayment?</p>
<p>Also, would the student be eligible to apply for the Pell Grant again if the funds are not used in the upcoming semester and again, related to the leave? Any guidance would be appreciated. Thanks.</p>
<p>After the six-month grace period (which begins on the last day the student attended school at least full time, based on the school’s withdrawal date in the case of a withdrawal):
Stafford Loans After six month grace period, apply for an unemployment deferment if you are not working (or apply for an economic hardship deferment if you are working). During grace and deferment repayment of your loan is not required. Your subsidized loan will continue to be interest free. Your unsubsidized loan will continue to accrue interest. If you do not qualify for a deferment and are unable to enter repayment at the end of your grace period, you can request forbearance. During forbearance interest will accrue on both the subsidized and unsubsidized loans. Contact your loan holder/servicer for details.</p>
<p>Thanks kelsmom. Do you know if there are other options for deferment other than unemployment (e.g. medical reasons)? If not, would the “clock stop” running again if the student returns after a leave?</p>
<p>I believe you will have to request forbearance, in that case. The servicer will be able to tell you your options based on the situation.</p>