FAQ

Author: Rebecca Gardner

Here are what I consider to be the top questions I get from students and parents about paying for school, getting financial aid, and applying for student loans.

The answers I provided for these questions are all concise, and to the point, and were created in an attempt to give useful answers that can quickly help assist those who are going to college and are actively seeking financial aid.

I have grouped each question into one of the following categories:

General Financial Aid
Federal Student Aid
Federal Student Loans
Completing the FAFSA
Private Student Loans
Educational Grants
Scholarships
Work-study
Student Loan Repayment

Contained within each category are what I feel to be the most popular and relevant questions:

The third section contains questions from each category with the appropriate answers:

General

Q: What is financial aid?

A: Financial aid is a term used to describe the various ways both students and parents may get financial assistance when paying for a postsecondary education.

This assistance typically comes in the form of the acquisition of various financial aid instruments. These include the following:

Scholarships
Educational Grants
Federal Student Loans
Private Student Loans
Work-study Programs

Scholarships and educational grants don’t have to be paid back under normal circumstances, while federal and private student loans do.

Students become eligible for these award instruments via three primary mechanisms:

Need-based Aid:
Merit-based Aid
Credit-based Aid

Educational grants, federal student loans, and federal work-study programs are based on financial need, most scholarships are based on merit, and private student loans are based on credit.

This site is dedicated to providing students and parents expert advice on how to go about applying for such aid, with the end goal of maximizing their ability to get the most aid possible for any given award year.

Q: Can I pay for all of my educational expenses with financial aid?

A: Absolutely. This however will depend on your ability to qualify for the various types of aid, which will be dependent upon your level of financial need, ability to qualify for various scholarships, and the strength of your credit profile.

Most students end up receiving a combination of the various kinds of aid that may be available, with scholarships and educational grants being the most preferable, due to the fact that they don’t have to be paid back.

Q: Are there different types of financial aid?

As was previously mentioned, there are five major types of financial aid award instruments:

Scholarships
Educational Grants
Federal Student Loans
Private Student Loans
Work-study Programs

A: Scholarships and educational grants don’t have to be repaid under normal circumstances, and are therefore preferable to both federal and private student loans.

Federal student loans typically carry lower interest rates and fees, and more repayment benefits than private student loans, and are therefore preferable if you were to do a comparison.

Q: How do I apply for financial aid?

A: This will depend on the type of financial aid you are seeking. I recommend to students that they apply in this order for any given school year:

First: Complete FAFSA between January 1 and June 30, earlier the better
Second: Always be applying and positioning yourself for scholarships
Third: Apply for PLUS Loans upon receiving award letter from college
Fourth: Apply for private student loans to cover any remaining educational costs

Keep in mind that private student loan funding should be considered last, only after scholarship and Federal Student Aid has been exhausted.

PLUS Loans should not be overlooked however, as they can provide up to the cost of attendance if the parent is willing to apply when the student is an undergraduate, and the credit profile of the student is strong enough if they are enrolled as a graduate student.

Q: Are there any important deadlines that I should be aware of?

A: The main deadline I recommend that you keep in mind is the window to submit your FAFSA, as this is between January 1, and June 30. Submitting this application is critical if you want to become eligible for Federal Student Aid, and should be done as early as possible.

You also want to keep in mind when you begin school, as this is the point where you typically want your financial aid award package to fully come together by.

Most private student loans can be applied for at virtually any point during the year, although you want to have such aid in place before the start of a particular semester.

Q: Do I have to re-apply for financial aid each year that I’m going to school?

A: Yes, for both Federal Student Aid, and private student loan funding, you will have to apply on an annual basis.

The FAFSA does need to be submitted for each year you are attending school, although if you complete the application online, you can transfer most of your information from the previous year to the current year’s application with relative ease.

Q: Who is responsible for the aid I have to pay back (student loans)?

A: For all federal student loans besides PLUS Loans for undergraduate students, the student is responsible for repaying the loan.

PLUS Loans for undergraduate students—the student’s parent is responsible.

There can be up to two responsible parties for the repayment of a private student loan—the primary borrower, and the cosigner.

The primary borrower is typically the student, although it can be a parent, or related party. The cosigner can be virtually anyone, just remember that this person will be responsible for repayment if the primary borrower defaults on the loan.

Q: Should I apply for financial aid even if I think I don’t qualify?

A: Yes, definitely. I recommend to students to submit their FAFSA regardless of how much money they make, and whether or not they think that they can become eligible.

The same goes for scholarship aid, as this is aid that doesn’t have to be paid back, and should be applied for without hesitation.

Private student loans should only be applied for after both Federal Student Aid, and scholarship aid has been exhausted.

Q: Do I need to be accepted and admitted into school before I apply for aid?

A: No, you can apply for all the various types of financial aid even before you are admitted to a particular college.

You of course won’t receive such aid unless you are actually admitted into a school.

This essentially is the most applicable for high-school seniors who wish to submit their FAFSA before they have actually received their acceptance letters from various colleges.

Q: Can I discharge my student loans by declaring bankruptcy?

A: Yes, but it is extremely difficult. You need to prove what is considered to be “undue hardship”, which is a status that is given to students who may be going through extraordinary circumstances that may prevent them from paying back their student loan debt.

Student loans are not in the same category as credit cards, and other types of consumer loans when it comes to a bankruptcy discharge, and therefore should not be treated as such.

The bottom-line is that you will have to prove undue hardship, which is extremely difficult to prove, to get either kind of student loan—federal or private, discharged via a bankruptcy.

I recommend to students that they take the time to understand this issue fully before taking going into such debt, as most student loan obligations will be with them for their entire lives, or until they pay them off of course.

Federal Student Aid

Q: What is Federal Student Aid?

A: Federal Student Aid consists of the assortment of financial aid that the federal government provides via educational grants, federal student loans, and through various work-study programs.

Common types of Federal Student Aid:

Federal Stafford Loans
Perkins Loans
PLUS Loans
The Pell Grant
Federal Work-study Programs

Q: How do I become eligible for Federal Student Aid?

A: To become eligible for this aid you need to satisfy the litany of Federal Student Aid eligibility requirements, and submit a FAFSA by the appropriate deadlines.

The following is a brief list of the major Federal Student Aid eligibility requirements:

United States citizenship, or eligible non-citizen
Presence of a valid social security number
Must show an “ability to benefit” via a high-school diploma, GED, or other method
Enrollment as a student in an eligible program that leads to a degree or certificate
Registration with Selective Service if male between the ages of 18 and 25
Satisfactory academic progress must be maintained once attending class
Certify that you have not currently in default on a federal student loan
Certify that you do not owe money on a federal student grant
Certify that all proceeds of any Federal Student Aid will be used toward educational purposes

Once you have gone through this list and have answered appropriately with regard to each item, you should be able to qualify for Federal Student Aid, and therefore be able to fill out, and submit the FAFSA.

Q: How do I apply for Federal Student Aid?

A: To apply for Federal Student Aid you must complete and submit the FAFSA after January 1, and before June 30.

You must complete a separate application in order to apply for a PLUS Loan, which can be found at your school’s financial aid department.

Q: Will all of my educational expenses be paid upon gaining eligibility for federal aid?

A: Not necessarily, while Federal Student Aid has the ability to provide you with up to your cost of attendance, the amount of federal aid will be determined mostly by your level of financial need, which is measured primarily by your expected family contribution.

You will not automatically have all of your educational expenses paid for by submitting the FAFSA.

Q: How much aid should I expect to receive via federal aid?

A: This can of course range quite dramatically, from only a few hundred dollars, all the way up to your entire cost of attendance.

Your level of financial need will determine to a large extent the amount of federal aid you end up receiving, which is measured primarily by your expected family contribution.

Federal Student Loans

Q: What are federal student loans?

A: These are student loans that are provided directly by the federal government via the Department of Education.

After the elimination of the FFELP Loan Program, all federal education loans are now provided directly from the Department of Education via the Direct Loan Program.

Applying for these loans consists of submitting the FAFSA by the appropriate deadlines (Jan. 1 – June 30), and completing a separate application for PLUS Loans.

Q: Are there different types of federal student loans?

A: Yes, there are three types of federal student loans that you should know about:

Federal Stafford Loans
PLUS Loans
Perkins Loans

Federal Stafford Loans are the most common type of federal education loan, and can be either subsidized (interest is paid for while in school), and unsubsidized (interest accrues while in school).

PLUS Loans require a separate application beyond the FAFSA, and can only be applied for by the student’s parent when they are still considered to be an undergraduate student.

Perkins Loans are very difficult to obtain, as they are need-based loans that are only provided by roughly 1,800 schools from across the nation.

Q: What is the best type of federal student loan?

A: There really is no “best” type of federal student loan, although each has its pros and cons:

Stafford Loans: Easy to qualify, capped loan amounts
PLUS Loans: Difficult to qualify (based on credit), can provide up to the cost of attendance
Perkins Loans: Difficult to qualify, low interest rate

Students with a high financial need should be able to at least get both the Subsidized, and Unsubsidized Stafford Loan, although the unsubsidized version is given out very liberally to students who have even the smallest level of need.

Q: How do I become eligible for federal loans?

A: To become eligible for a federal student loan you must satisfy the litany of Federal Student Aid eligibility requirements, and then be able to complete the FAFSA by the appropriate deadlines.

PLUS Loans are a bit different in that they must be applied for via a separate application after submission of the FAFSA, and are based in-part on credit.

Q: Do I need a cosigner to apply for a federal student loan?

You, or your parents may need a cosigner when applying for a PLUS Loan.

The other types of federal loans aren’t based on credit, and will therefore not require you to provide a cosigner at any time.

Q: Will my bad credit history affect my ability to get a federal loan?

A: To get a PLUS Loan, yes, because they are based on credit. If your parents are applying for a PLUS Loan then their credit will be evaluated, not yours.

Your credit profile won’t even be sequestered when applying for the other types of federal student loans, so having bad credit will be irrelevant during the application process.

Q: Is it better to get a federal or private student loan?

A: I recommend to student and parent borrowers that they exhaust what they may be able to receive via Federal Student Aid, which includes federal student loan funding, before seeking out a private student loan.

This is mostly because federal loans cost less, and carry more repayment benefits than most private student loans.

Q: When will I have to begin making repayments on my federal student loans?

A: You typically will have an automatic in-school deferment and grace period with federal loans, at which point you will be required to begin making repayments.

You don’t necessarily have to begin repaying your loan at this point however, as federal student loans come with an abundance of repayment benefits—including deferment, forbearance, and payment-adjustment options that you can implement voluntarily.

Q: Can I consolidate my federal loan debt?

A: Yes, you can consolidate any federal student loan that is not currently in “in-school” status.

I recommend to students that they apply for the Federal Direct Consolidation Loan, which is a federal student loan that is also provided by the Department of Education via the Direct Loan Program.

The application for this loan can be found at loanconsolidation.ed.gov.

Q: Is there a way to have my federal student loan debt discharged permanently?

A: Yes, although this is very difficult to do. The following contains a listing of some of the satisfactory reasons that may warrant such a discharge:

Permanent disability
Improper certification with regard to having an “ability to benefit” from such aid
School closure
Bankruptcy—must prove undue hardship

Not being able to get a job, or having a low income are not typically permitted as grounds for a discharge.

Completing the FAFSA

Q: Where can I get a hard-copy of the application?

A: At you college’s financial aid department, or by requesting one be sent to you online at fafsa.ed.gov.

Q: What website do I need to visit in order to apply online?

The only website you need to visit to complete the FAFSA is fafsa.ed.gov, as this is the official FAFSA website that is provided by the Department of Education.

Q: Where can I get my PIN?

A: This can be obtained at pin.ed.gov.

Q: What is the earliest date I can submit the application?

A: Earliest date to submit the FAFSA: January 1

Q: What is the latest date I can submit the application?

A: Latest date to submit the FAFSA: June 30

Q: How soon should I send in my application after January 1?

A: I recommend to students that they submit their FAFSA as early as possible after January 1, as this can increase the chances of receiving the highest amount of aid possible.

Remember that the absolute latest date to submit the FAFSA is June 30—waiting to the last minute is not advised.

Q: Will I become eligible for Federal Student Aid by completing the FAFSA?

A: In order to successfully submit the FAFSA you must be able to satisfy the litany of Federal Student Aid eligibility requirements.

You should go over these before you actually go ahead to complete the application to make sure that you will in-fact qualify for Federal Student Aid.

To gain eligibility for Federal Student Aid you must be able to satisfy this list of requirements, and upon doing so, you will be able to successfully submit the FAFSA.

Q: Will I become eligible for federal student loans by completing the FAFSA?

A: Not necessarily, if you were able to successfully submit the FAFSA, then your eligibility for the various types of federal student loans will mostly reside on your ability to demonstrate the appropriate level of financial need, which is primarily indicated by your EFC (expected family contribution).

The main exception to this is the PLUS Loan, which is based on credit, and will require a separate application beyond the FAFSA.

Q: How long will it take to complete?

A: Once you have compiled all of the appropriate information and documentation that you will need during the completion process of the FAFSA, the actual process of filling out the online FAFSA should take anywhere between one and two hours.

I’m speculating that the hard-copy version would take a bit longer because of the fact that you must handwrite everything, but I’m not fully sure.

Q: What information and documentation should I have close-by when completing the application?

A: The following is a list that contains most of the information and other documentation that you will need when completing the FAFSA:

Valid social security number
Driver’s license
If not a U.S. citizen a permanent resident card, or perhaps an alien registration card
W-2 forms, tax returns, and other relevant tax documentation
Tax documentation from parents (if still a dependent)
Tax documentation from spouse (if married)
Income statements—government benefits, welfare, etc.
Bank statements
Mortgage documentation
Asset and investment documentation
Relevant documentation if an owner of a business, or farm
School codes for all relevant postsecondary institutions

Private Student Loans

Q: What are private student loans?

A: Private student loans are education loans that are provided by independent private lenders, and not the federal government.

Private loans should be applied for after federal student loans, and in my opinion should be looked upon as a type of “last resort” opton when all other forms of aid have been exhausted.

Q: How should I apply for a private loan?

A: You must complete a separate application for each private student loan you are applying for.

This typically means that you will have to complete a distinct application from each private lender you wish to become eligible for.

I recommend to student and parent borrowers to go online to each private lender’s website when ready to apply, as this is the best way to determine what is needed for each application.

Q: How much aid should I expect to receive via a private student loan?

A: Private student loans are typically able to provide you with up to the cost of attendance, although less qualified borrowers may not be able to become eligible for this level of funding.

Q: Should I apply even if I have bad credit?

A: I don’t recommend that you apply with bad credit unless you have a creditworthy cosigner to provide the lender.

Having a cosigner that can meet the lender’s guidelines will typically override your poor credentials, and allow you to get an approval without much of an issue.

Q: Can I get a private student loan without a cosigner?

A: You can still get approved as the sole borrower for a private student loan if you have the proper credentials in terms of credit and income, although most private loans are approved with the help of a cosigner.

The bottom-line is that private lenders will not compromise on their lending guidelines, and if you have poor credit, no credit, or a low income, then you are essentially wasting your time applying for a private student loan with no cosigner.

Q: Are private student loans better than federal education loans?

A: In my opinion, no, private loans are not “better” than federal student loans because they cost more when all is said and done.

They also typically come with fewer repayment benefits, which can make repaying the loan more difficult than paying back a federal student loan.

The only advantage private student loan funding has over federal student loan funding is the fact you can borrow up to the cost of attendance without much difficulty, while there are set limits on the amounts you can borrow with most federal education loans.

I recommend that you exhaust your options with regard to Federal Student Aid before you seek out any private student loan funding in order to lower your costs, and improve your ability to payback such debt.

Q: When should I apply for a private student loan?

A: The best time to apply for a private student loan is after you definitively know how much Federal Student Aid you are going to be receiving for a particular school year.

This way you can subtract the cumulative amount of aid you expect to receive from your cost of attendance up to that point, and then come up with the figure that you will need in order to be able to pay for school.

Q: Will my cosigner be required for repayment instead of me?

A: No, you will be the primary borrower in this situation, and your cosigner will only be liable after you have defaulted on your loan, or perhaps when your loan is no longer current.

Having a cosigner for your private student loan in no way shape or form gets you off the hook from having to repay such a debt.

Q: Where can I find a reputable lender?

A: I have provided a list of reputable private student loan lenders here that you all can review when you need private student loan assistance.

Q: Are private student loans expensive?

A: From my point of view private student loans are expensive when compared to other types of financial aid because of their higher interest rates, and abundance of fees.

Their finance charges are comparable to that of other types of consumer loans, such as mortgages, and car loans, and do not really give the student borrower any break besides what is considered to be a competitive interest rate that is similar to other types of consumer loans.

Educational Grants

Q: What are educational grants?

A: Educational grants are financial aid award instruments that are given to students by the federal government that don’t have to be paid back under normal circumstances.

They are typically based on financial need, and may have other sorts of eligibility requirements in place in order to qualify.

Common educational grants include the Pell Grant, the Academic Competitiveness Grant, and the TEACH Grant.

Q: How do I apply for educational grants?

A: You first must complete the FAFSA in order to apply for federal educational grants.

That may be enough for some awards such as the Pell Grant, while you may still need to complete some additional paperwork for other types of federal grants.

You college’s financial aid department will notify you of your eligibility for such grants, and then explain to you what may be needed in addition to the FAFSA.

Q: I don’t have to pay back my federal grant, right?

A: Under normal circumstances, yes, you don’t have to repay your federal educational grant.

If you drop out of class, or become ineligible for whatever reason during the middle of a semester and have already received such aid then you may have to repay your grant.

Not doing so can result in having what is considered to be a Pell Grant overpayment stricken to your record. You will not be able to receive additional Federal Student Aid while this status remains in place.

Q: What are the major types of educational grants?

A: There aren’t really different classes of educational grants, and rather there are only specific federal educational grants in existence.

These include, but are not limited to:

The Pell Grant
The Academic Competitiveness Grant
The TEACH Grant
The FSEO Grant
The National SMART Grant

Q: What is the Pell Grant?

A: The Pell Grant is the most popular federal educational grant that is in existence, and it can provide you with up to 5,550 dollars of aid per academic year if you are able to qualify.

Eligibility is heavily based on your level of financial need and therefore your EFC, and you can apply via the FAFSA.

Q: Do I have to apply each year to become eligible for grant assistance?

A: For the most part yes, you must complete a new FAFSA for each academic year that you wish to become eligible for federal grant assistance.

Scholarships

Q: What are scholarships?

A: A scholarship is another type of financial aid award instrument that is similar to an educational grant, in that it doesn’t have to be paid back.

Most scholarships are based on merit, which essentially means that your eligibility is based on you ability to exhibit some kind of unique quality or trait, or some past achievement or skill.

Q: Do I need to apply for scholarships?

A: You do for some scholarships, although for a large proportion of these types of awards applying to, and attending school is enough, as outside parties will evaluate you independently and notify you if you are able to qualify.

For the scholarships that do require the completion of a distinct application, the process is typically not that much different than completing the FAFSA, or a regular college application in that you will have to provide a variety of personal information, and perhaps complete certain additional tasks that may take the form of an essay.

Q: What is merit-based financial aid?

A: Merit-based financial aid is based off of a student’s ability to exhibit a particular trait or skill.

Most scholarships are considered as merit-based financial aid.

Examples include academic scholarships that are given for superior performance in the classroom, athletic scholarships for students who are gifted athletes, and community-based scholarships to those students who may have a done significant work in their town or community.

Q: How much aid can I receive from a scholarship?

A: Scholarships are given out in a wide range of increments, and you can receive up to your cost of attendance with a scholarship.

Most scholarships however are not given out in such large amounts, and can be as low as a few hundred dollars.

The amount you receive with any particular scholarship will depend on the specific scholarship award you are applying for, and perhaps your profile as an applicant.

Q: How many scholarships are out there?

A: There are thousands of specific scholarship awards in existence, and I encourage you to go out and find one that you are able to qualify for, as there is an abundance of scholarship aid available for virtually every type of student that attends college.

Q: Should I report an outside scholarship to my college?

A: Yes, as this will give your school’s financial aid department the ability to modify your aid package in accordance with such an award.

Work-Study

Q: What is work-study?

A: Work-study is a type of financial aid that involves the provision of funding in accordance with student employment.

There are two types of work-study programs, there is Federal Work-study, or FWS, and then there is non-federal work-study, Non-FWS.

Federal Work-study is based on financial need, and to become eligible you must submit a FAFSA.

Non-FWS is not based on financial need, and is typically awarded through the college of attendance.

The bottom line is that work-study programs can provide another way for students to obtain money to pay for school, and should be looked upon as a valuable financial aid resource because of this.

Q: How much money should I expect to receive via a work-study program?

A: This of course depends on the particular work-study program at hand, although most students on average receive between 1,000, and 2,000 dollars in aid as a result of completing a particular work-study program.

With some programs the more time you put in, the more aid you should be able to receive, although some programs do not work like this, and are capped at certain pre-set amounts.

Q: Will I have to interview for a work-study position?

A: It really depends on the particular position, but you should be ready and prepared for such an interview if it is indeed required.

Q: Is it better to work in my career field?

A: You don’t have to be employed in a position that is related to your career field when participating in a work-study program, although this can be extremely valuable if done correctly.

Q: Is the money I make from a work-study program taxable income?

A: It can be with certain types of positions, while it may simply be disbursed to you in a blanket amount with other programs.

It is best to understand how you are going to get paid before you start any particular work-study program.

Contact either you school’s financial aid department, or your work-study employer to find out how your work-study aid will be allocated to you.

Student Loan Repayment

Q: What is deferment?

A: A deferment is a repayment benefit that can allow you to postpone your student loan repayments by a certain length of time.

Most student loans come with an automatic in-school deferment, and most federal loans come with an automatic grace-period deferment.

Voluntary deferments come with most federal student loans, although are less common with private student loan funding.

Q: What is forbearance?

A: A forbearance does essentially the same thing as a deferment, in that it postpones your student loan repayments by a certain period time, although with a forbearance, the interest that has accrued on your loan is capitalized, thus increasing your principle balance, and the total amount of money you owe.

Most federal student loans come with an abundance of forbearance time, while the amount of forbearance time can vary greatly with regard to private student loan funding.

Q: What is a payment-adjustment option?

A: A payment-adjustment option is a way that you can reduce the amount of your monthly student loan payment.

Some common types of payment-adjustment options include:

Interest-only payments
Graduated payments
Income-adjusted payments
Extended payments

The bottom-line is that each of these payment-adjustment options can lower your monthly student loan payment, thus making it easier for you to afford your student loan, and make it less likely to fall into default.

Most federal student loans come with the availability of such options, while such availability can vary greatly with private student loan funding.

Q: What is consolidation?

A: Student loan consolidation is when you obtain a new loan to payoff either one, or several student loans.

This is done to lower monthly payments, get a better interest rate and lower costs, and for the added convenience of only having to make one payment instead of several per month.

The best way to consolidate federal student loan debt is via the Direct Consolidation Loan, which is a federal consolidation loan that is provided by the Department of Education.

Q: What is student loan delinquency and default?

A: Student loan delinquency describes the status of a student loan when it is in repayment status, and is no longer current. This happens of course when the monthly payment amount isn’t made on-time, or for consecutive months.

When a student loan remains delinquent for several months, it can eventually fall into default. When this happens, the lender may sell the note, or hand it over to a collection agency.

Defaulting on a federal student loan is very serious, and can have negative ramifications including wage-garnishment, the withholding of your tax refund, and the liability of being sued in court.

Q: Is there any way to have my student loan debt discharged permanently?

A: Yes, but it is very difficult, and can only be done under certain circumstances. These include the following:

Permanent disability
Improper certification with regard to having an “ability to benefit” from such aid
School closure
Bankruptcy—must prove undue hardship

Not being able to get a job, or having a low income are not typically permitted as grounds for a discharge.

Q: Should I expect my private student loan to come with a grace period?

A: No, as there is no guarantee that your private student loan will come with a grace period deferment.

The best thing that you can do as a borrower is to find out beforehand what the lender’s policy are with regard to grace-period deferments.

Make sure to find out also if their policies can change at their discretion, which of course they probably can.

I will say however that most of the private student loans that I know about do come with some kind of grace-period deferment—the important thing is to establish this before you accept such funding.

Q: If I default, will my cosigner then have to bail me out?

A: Well, sort of, as they will be liable to repay the loan, although you will still suffer many of the negative consequences of not paying back your loan, such as the detrimental effects to your credit.

Q: Can I use my student loan aid to buy anything I want?

A: No, you must only use your student loan aid on what are considered to be educational expenses, which can be defined as anything you may need to go to school.

Tuition, books, and living costs are no-brainers, although things like gas, and even computers are still okay most of the time even though they exist in more of a grey-area.

You should never use your student loan aid on personal items that aren’t related to going to college, and if caught doing so you may in-fact be disqualified from receiving Federal Student Aid going forward.

Q: Will I have to start paying my student loans back by taking a leave of absence?

A: This typically depends on the length of the particular leave of absence you may be taking, as most student loans have grace-period deferments that will go into effect once you leave school.

If you are out of school beyond the amount of time that is allotted for the grace-period deferment, then you may have to begin making repayments, although if you contact your lender, you may be able to put it into another kind of deferment, or even a forbearance.

With federal student loans, if you take a leave of absence and use up your grace-period deferment time, you will have to begin making repayments upon graduating, as you will no longer have any grace-period deferment time left.

Article Tags: Educational Grants • faq • Financial Aid • frequently asked questions • Private Student Loans • Scholarships • student loans • The FAFSA

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