Help with Federal loans and how they work please...?

Question

Per the federal student aid website I am entitled to:

"a 6 month grace period when you have ceased to be enrolled at least half time. Your first payment is due within 60 days after your grace period ends."

So heres my question: In those summer months when most students take the 3 months or however long it is off... is the grace period ticking away?

Also let's say you cease to be enrolled half time and the grace period begins... if you go, let's say 5 and 3/4 months without being enrolled and then enroll again- does that set everything back to normal or will you still end up repaying the loan because you dropped below the half time status?

Answer 1

The Federal loan programs do 6 months exactly for the reason you mentioned. Most students are off for 3-4 months in the summer and this allows students to have a vacation without triggering the clause for loan payments.

So in your example, going 5 and 3/4 months wouldn't trigger repayment if you re-enrolled. You would be able to "reset" so to speak.

Remember, however, that "enrollment" is not necessarily on your schedule. You have to work around the deadlines that your school has imposed as well and often this is on a 3 or 6 month cycle. If you miss the enrollment at the beginning of the quarter or the beginning of the semester, by the next enrollment period your grace period on your loans may have expired.

Also remember that different types of loans have different requirements for payments and grace periods. It would be a shame to lose a lot of financial aid because of a technicality! Make sure to check with your financial aid office and read the terms of your loan before making any decision. This is especially true if you have a combination of different types of loans, grants, and scholarships.

Best of luck!

Answer 2

I believe you can take any 6 consecutive months without being a full time student. If you are going less than part time, including during the summer, yes I believe that is using your grace period. But if you re-enroll more than half time before your 6 mo period is up (I don't know how long you have to attend before it resets everything) then I think it starts your 6 mo over. I would talk to the financial aid advisors at your school to find out for sure. You don't want to wind up owing a bunch of penalties or something for something you didn't realize in the beginning. Make sure you understand how it works. I know a lot of those programs have stipulations about what your grades have to be and how long you have to go and so on. Good luck and God bless.

Answer 3

Contact the Financial Aid deparment of your school (or the school you're considering). They should be able to answer all of those questions.