What happens with FAFSA after school?

Question

I just finished my second year of college and got my AAS degree--I should now be transferring onto a traditional 4 year school to complete my last two years, but I'm deciding to take some time off in between. Please don't try to influence me to change my decision, don't tell me how big of a "mistake" I'm making--you don't even know the reason, so it's just none of your business. I didn't post this question to get advice.

I just have a quick question regarding my FAFSA--what do I have to do with it now that I'll be taking time off? I'm assuming I'm going to have to start making payments...but who do I talk to about this and how is it going to work? Thanks!

Answer 1

the fafsa is the application you filled out to get financial aid and has nothing to do with anything except that.

If you are asking if you have to pay back student loans you took out then yes, you have to start paying those back 6 months after you drop out of school or graduate.  Grants do not have to be paid back.  If you are unsure who to make payments to call 1-800-4FEDAID (the Department of Education) and they will tell you the holder of your loans and who you need to contact to start making payments.  Also call them if your contact info changes.

Also, AAS is an Associate of "Applied" Science degree.  This is a degree you get when you want to go directly into the workforce after you graduate, not transfer on to a 4 year college.  The AA or AS (Associate of Arts or Associate of Science) degrees are the ones designed to transfer completely to 4 year schools without loosing credits, time, and money.  

Definitely call the school though, just to be sure!!  Just don't be shocked when many of your classes won't transfer to the 4 year school.

Answer 2

if you had taken out your student loans, they usually give you a 6 month grace period before they start demanding payments.

as far as to find out who is your lender, you should look at the statements that are mailed to you. You should have received something from them every time you have pulled out a loan.   If you dont know, just call your financial aid office of the school you went to and find out.  Pray that it is not Sallie Mae.

Now if you are unable to make the payments you should talk to the lender.  If you are not earning enough to where you can make payments please call the lender, they are humans and they will work with you by deferring payments.  Now if you avoid making payments and not talk to them then they wont be so .

Answer 3

The FAFSA is just the application form that you fill out every year to apply for need based federal aid.  I think what you are intending to ask about is what to do about the student loans that you received as a result of the FAFSA.  You are correct that if you are no longer in school, you will need to begin repayment of those loans.  That is why it usually makes sense to stay in school until you have achieved the terminal degree in your field.  Otherwise you will not be able to make enough money to repay your loans.  

The best source of information about your repayment options is whoever holds your loans - Sallie Mae, the school itself, a private lender.  Review your loan docs and call them - you probably have a six month grace period afterwhich repayment begins.  You have two choices here - you can start repayment or take enough classes at a Community College to be considered full time while you decide which direction you are going in next.  Also, you may have an option to make smaller payments for the first few years and larger payments down the road.