ChargerMatt Posted May 2, 2012 Posted May 2, 2012 For you guys who have just recently graduate or heck, anyone who knows about this. I know I have a 6 month grace period once I drop below half time. What happens if I take less than half time (6 credits is half time) in the fall but am half time in the winter semester? What about vice-versa? 6 credits in the fall, 3 in the winter. When will I have to start repayment?
Feets31 Posted May 2, 2012 Posted May 2, 2012 You can not get financial aid once you drop below 6 credit hours. Borrower Grace Periods After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This "grace period" will be Six months for a Federal Stafford Loan (Direct Loan ProgramSM or Federal Family Education Loan (FFELSM) Program). Nine months for Federal Perkins Loans.
ChargerMatt Posted May 2, 2012 Author Posted May 2, 2012 You can not get financial aid once you drop below 6 credit hours. Borrower Grace Periods After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This "grace period" will be Six months for a Federal Stafford Loan (Direct Loan ProgramSM or Federal Family Education Loan (FFELSM) Program). Nine months for Federal Perkins Loans. I understand that, but how it has previously worked is that I apply around this time of the year for the next Fall/Winter semester. If when I apply I am part time, I will get financial aid, will I not? Assuming I won't, I will have to pay out of pocket for tuition as well as pay off my past loans at the same time, correct?
Feets31 Posted May 2, 2012 Posted May 2, 2012 Federal financial aid is good for 10 full time semesters. If you go part time that counts as half a semester and extends your time to receive aid. You can mix your semesters with part and full time and alternate every year. Check with the school financial aid office to verify your options. Financial aid is figured each year. So if you got rich or your financial situation changed in a major way, it could affect your status the next year. Register for classes now and this summer you will get an estimate from the financial aid office outlining your options. If your college is on quarters I am not sure how that works.
Z71_Denali Posted May 2, 2012 Posted May 2, 2012 sounds like a question you need to ask the bank! i've dealt with student loans before, they're not fun paying back! especially when your last payment is 8 years early and they don't want you to stop paying so they ignore the huge payment you just sent them!!! ask me how i know! exact same thing happened when i paid both my wife's loans off and mine!
mc2hill Posted May 2, 2012 Posted May 2, 2012 sounds like a question you need to ask the bank! i've dealt with student loans before, they're not fun paying back! especially when your last payment is 8 years early and they don't want you to stop paying so they ignore the huge payment you just sent them!!! ask me how i know! exact same thing happened when i paid both my wife's loans off and mine! In the past (mid 80's) the bank received income from the Fed's for these loans. The difference between the current loan rates and the reduced student loan rates was calculated and the bank got a check for the difference. When the loan rates were near 18% and the student loans were around 5% that was a nice piece of change! Not sure if that has changed, but that could be the reason they didn't want it paid off!
Z71_Denali Posted May 2, 2012 Posted May 2, 2012 In the past (mid 80's) the bank received income from the Fed's for these loans. The difference between the current loan rates and the reduced student loan rates was calculated and the bank got a check for the difference. When the loan rates were near 18% and the student loans were around 5% that was a nice piece of change! Not sure if that has changed, but that could be the reason they didn't want it paid off! well one of my wife's was a private loan at 8%, the other was a federal stafford loan, as was mine at 3-5% depending on the sub-loan for each semester. not much different but federal loans are still lower. anyone that takes 10 or 20 years to pay these off is paying double the original amount in the long run. all our 1098-Ts combined had about $10k in interest for about $100k in loans. if we paid the minimum we woulda paid about $120k in interest over the course of the term!!!
ksell87 Posted May 3, 2012 Posted May 3, 2012 Federal financial aid is good for 10 full time semesters. If you go part time that counts as half a semester and extends your time to receive aid. You can mix your semesters with part and full time and alternate every year. Check with the school financial aid office to verify your options. I'm pretty sure there are not limits on the number of semesters for student loans (unsubsidized and subsidized loans). There are, for example, limits on the number of semesters one can receive the Pell Grant. There are aggregate loan limits for a Dependent student (subsidized and unsubsidized) and different aggregate loan limits for an Independent students. I do not believe you will be able to get a Direct loan while being below half-time but you can still qualify for Grants and a Perkins loan. Hope this helps.
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