Stafford Loan Question

[hello5]

<p>Can I pay off my son's unsubsidized Stafford loan in one lump sum?</p>

[icedragon]

<p>You should be able too. Its a loan right? Isn’t that how it works?</p>

[hello5]

<p>I don’t know, and haven’t found any info that states that I can.</p>

[swimcatsmom]

<p>Yes you can. This is covered in part of the entrance counseling that students must do before they can get their loans.</p>

<p><a href=“https://www.dl.ed.gov/borrower/EntrCounselingPage.do[/url]”>https://www.dl.ed.gov/borrower/EntrCounselingPage.do&lt;/a&gt;&lt;/p&gt;

<p>

You also have the right to…</p>

<pre><code>* a 6 month grace period on your Direct Stafford Loans when you have ceased to be enrolled at least half time. Your first payment is due within 60 days after your grace period ends.

• receive appropriate deferments or forbearance if you qualify and request them.
• apply for an in-school deferment while enrolled at least half-time on your Direct Stafford Loan.
• change your repayment plan at any time.
  *** prepay all or any part of the amount owed without a penalty.**
• decline all or part of your loan money before it is disbursed by notifying your school (as explained on the MPN).
• receive a copy of your MPN either before or at the time your loan is disbursed.
• receive documentation that your loans are paid in full.
  </code></pre>

<p>

</p>

[lkf725]

<p>How do you defer payment of undergrad loans until you are done with grad school? </p>

<p>Is there any chance of getting subsidized grad loans if undergrad was unsubsidized?</p>

[hello5]

<p>Thanks, Swimcatsmom</p>

[swimcatsmom]

<p>Actually I just realized the link I gave you is for Direct loans (basically same as Stafford loans but the school is the direct lender). If you can track down the link to entrance counseling for your son’s school you should find the same rules.</p>

[Debruns]

<p>lkf725, I hope so, re the loans, my son had mostly unsubsidized loans as undergrad and paying the interest on them is becoming more than I’d like every month. I will do it though and most of it senior year to help him out and hopefully he’ll have subsidized in grad school.
I also remember reading you can pay any loan off in full anytime. I paid one of my parent loans off in 1 year when it was for longer, they don’t care.</p>

[hello5]

<p>I guess I should call the financial aid office for clarification. I’d like to pay it off for him, if possible for us financially. He’s responsible for grad school!</p>

[kelsmom]

<p>You can pay off any Stafford loan at any time before it’s due.</p>

<p>If a student only got unsub loans in undergrad due to high EFC, he may get sub in grad - because grad students are automatically independent for federal aid (plus, grad expenses are higher). Also, the undergrad sub limit is $23,000 but the grad limit for sub is higher. So if you are only getting unsub because you maxed out sub, you’ll be eligible for more sub as a grad.</p>

[lkf725]

<p>I sure hope so… thanks!</p>

[owlice]

<p>kelsmom, am I right in assuming the age of a grad student has no bearing on the student’s independence?</p>