<p>Does anyone know what happens with Stafford loans in the event of a transfer of colleges? Do they immediately come into repayment? I'll call the school and lender tomorrow, but it strikes me that I have no idea what to ask.</p>
<p>Stafford Loans are payment-deferred as long as you're a 1/2 time student.</p>
<p>When you drop out of school A, your loans will enter the grace period. When you register at school B, your loans can be put back into deferment status. As long as you aren't out of school too long, you shouldn't have any difficulties.</p>
<p>We are just tying up the loose ends on a transfer. The new school was kind enough to contact the lender to talk to them about my D's situation. It is not a preferred lender for the new school ... but we did NOT want to switch lenders, as that causes headaches at repayment time. The new school instructed D to do new entrance counseling & get a new MPN. She did the entrance counseling right away, but dragged her feet on the new MPN. In the meantime, her old school processed her loan for next year (even though she had notified the correct person at that school that she was withdrawing ... and even though the lender was notified that she was transferring). She got the lender to cancel that loan, then she did a new MPN with her new school's name. It took a long time to finally get from the lender to the new school for certification (in fact, I think that it took a call from me to get it done!). In the end, though, it all got taken care of. You just have to stay on top of it to make sure it does. You do NOT want the lender to get a withdrawal notice from school 1 & no enrollment notice from school 2! That would result in repayment being expected when it shouldn't be.</p>