Hypothetical Question:
If I was in my 2nd year of college and am considering withdrawing from the school because I was getting married and am having a baby, how would I have to pay back loans? Or do I not pay back the loans? Or when do I pay back the loans? Because from my understanding, you pay back loans after you graduate? Please help.
When you take out a student loan you are usually given a 6 month grace period after graduation before the loan goes into repayment.
If you drop out of school the loan goes into repayment once the loan company is informed that you are no longer a student. Withdrawing isn’t a golden ticket saying that you don’t have to pay back what you borrowed – you still owe the loan company every penny that you agreed to pay back.
When you take out a student loan you are usually given a 6 month grace period after graduation before the loan goes into repayment.
If you drop out of school the loan goes into repayment once the loan company is informed that you are no longer a student. Withdrawing isn’t a golden ticket saying that you don’t have to pay back what you borrowed – you still owe the loan company every penny that you agreed to pay back.
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For federal student loans, you’ll get a six month grace period before repayment starts. If you have unsubsidized loans, interest will continue to accumulate during that period. Repayment of student loans starts when a student leaves school (whether they graduate or just withdraw). If you’ve already had a six-month grace period (due to a previous leave from school), then you will start monthly repayments immediately.
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