Taking A Break From School and Student Loans

Paying for College
1

<p>Hello, I have question about those who take a break from school that have taken out student loans. Unfortunately, this quarter I was unable to get into any of the classes I need so I'm going to have to sit out this quarter. Would I need to notify the lender about this break? Also, what would I be responsible for if I took a year off from school. I go to a CSU by the way. Thanks. </p>

2

<p>If you have Direct Loans, you get a six month grace period, and then your repayment begins. If you have a low income, you can arrange income based repayment with your lender…but the six month grace period stands. </p>

<p>Once you start college again, you will not have to pay, but you only get one six month grace period…so if you use it for six months off of school, or a year…your repayment will begin as soon as you are no longer in college.</p>

<p>At least that is my understanding…hoping someone will verify my info!!</p>

3

<p>^ agreed.</p>

4

<p>^See <a href=“http://www.loans.ucla.edu/howto/loangrace.html[quote]However”>http://www.loans.ucla.edu/howto/loangrace.html

</p>

5

<p>Does that apply to most schools? ^^</p>

<p>Thanks for responding to the thread everyone.</p>

6

<p>^Yes I think so. The loans are from Federal government and the rules should be the same everywhere in USA.</p>

7

<p>For federal loans, if you return to school at least half time (or get a qualified deferment - things like Fulbright studies), before the end of the grace period, the grace period resets. That is why summer doesn’t count toward your grace period - you are back in school before the 6 months. Let’s say you decide not to return for Winter term - if your last day of class was in December, and if you take a Spring/Summer class that begins before the 6 months is up (say May start date) - your grace period resets. But if you were to start in a late summer class - like a July start - you would have used your full grace period & won’t get another. </p>

<p>Another thing to remember is that you would have to take at least a half time course load in a semester for it to be a qualified deferment. Your grace period can get used up even while you are in school if you don’t have a course load that meets half-time as defined by your school.</p>