<p>I have had this perception that the condition that a loan be repaid at least on some installment plan after a grace period following the student's graduation from his undergrad institution meant that if the student elected to go to graduate school, then that grace period would instead apply following his completion of grad school. Am I right, or is the student still expected to produce that money while attending graduate school?</p>
<p>Stafford Loans:
"Six-month grace period when no payments are required immediately following your graduation or dropping to less-than-half-time status."</p>
<p>Thanks,
Torrey</p>
<p>DS is in grad school. His stafford loan repayments are deferred until after grad school. </p>
<p>BUT you need to check the conditions of YOUR loan with your lender.</p>
<p>I'm sorry thumper, but I didn't quite understand your reply. Who is the "his" you are referring to? And what is DS? </p>
<p>T</p>
<p>DS would be Thumper1's Dear Son, and the "his" would be "thumper1's Dear Son's loan repayment".</p>
<p>Well, I found out that my CampusDoor loans are deferred until the period beginning 6 months after the completion or withdrawal of enrollment of the highest level of education in a series that you're enrolled in. The DirectLoan guy whom I spoke with seemed to suggest that they do it differently. however. But he also did not cover whether or not one could apply for a deferment if they were in school at least half-time (grad school, that is).</p>
<p>"Thank you for your e mail inquiry. Repayment begins 6 months after your school reports you have graduated or fallen below half time status. You will only receive one 6 month grace period for the life of the loan.</p>
<p>Currently your school has reported you will be attending at least half time status until 5/15/09 and based on this date the 6 month grace period will expire on 11/15/09."</p>
<p>Typically, undergraduate Stafford Loans are eligible for in-school deferment status when the student enters graduate school, if their enrollment is considered half-time, three-quarter time, or full time. Depending n the amount of time between undergraduate graduation and graduate classes starting, the 6-month grace period may not be available once you complete your graduate courses. You may need your school to complete and In-School Deferment Request form, unless they participate with National Clearinghouse (which automatically updates lenders on enrollment status). While the Direct Loan guy wasn't very knowledgeable, I know that at least 75% of my graduate students have deferred their undergraduate loans...the other 25% have chosen to remain in repayment on those loans.</p>
<p>is the interest deferred as well on a subsidized stafford and Perkins loan?</p>
<p>Thank you NikkiiL. Do you know if one could attempt those repayments, foregoing the deferment initially just to see how well they manage, as well as reduce costs in connection with interest, and then if circumstances don't work out for them, elect to defer their payments subsequently? How many times can one apply for a deferment in this manner, i.e., entering repayment whenever money happens to be available to the person, and then deferring whenever it gets tight again?</p>
<p>I am not sure if there is a limit to entering/exiting deferment, so long as one qualifies, but you can choose to remain in repayment instead of deferring the loan. I also have many students who place their loans into deferment status but send quarterly payments, when they can...that way they never have to worry if they suddenly have no funds to make the monthly payment. In fact, I have a lot of my adult students who take out their loans to cover costs while they wait for employer reimbursement to kick in...then they compile the reimbursement for 3-6 months and send in a lump sum payment towards their loan but the loans remain in deferment status.</p>