When Do I Have To Pay Back My Stafford College Student Loans?
After graduating, leave school, or dropping below half time enrollment, you will have a six-month grace period before you must begin to repay your college student loan. During this period, you will then receive payment information, and you will be notified of your first payment due date. You alone are responsible for beginning repayment on time, even if you do not receive this information. Payments will usually be due monthly.
During the grace period on a subsidized college student loan, you will not have to pay any principal, and you will not be charged any interest. In addition, during the grace period on an unsubsidized college student loan, you do not have to pay any principal, but you will be charged interest. You can choose to either pay the interest or it will be capitalized (added to your principal college student loan balance, thus increasing the amount you will owe).
How Do I Pay Back My College Student Loans?
You will repay your FFEL Stafford College Student Loan to a private lender or a student loan servicer. You will repay your Direct Student Loan to the U.S. Department of Education’s Direct Student Loan Servicing Center. Both the Direct Student Loan and FFEL programs will offer four repayment plans you may choose from, but the terms will differ slightly. You will receive information that is more detailed on your repayment options during your entrance and exit counseling sessions your school will provide to you.
What If I Have Trouble Repaying The College Student Loan?
Under some circumstances, you may be able to receive a deferment or forbearance on your college student loan, as long as it is not in default. A deferment simply means no payments are required at the time. You will not be charged interest for a subsidized FFEL or Direct Stafford college student loan. If you have an unsubsidized Stafford College Student Loan, you are responsible for the interest during deferment.
If for some reason you are temporarily unable to meet your repayment schedule (for example due to poor health or other unforeseen personal problems), but you will not be eligible for a deferment, your lender may grant you forbearance for a specific limited time period.
Can My Stafford College Student Loan Ever Be Discharged Or Canceled?
It can, but only under some specific circumstances. Your college student loan cannot be canceled because you simply did not complete the program of study at the school (unless there is a valid reason you could not complete the program such as the school closed, for example), or because you did not like the school or the program of study, or you simply did not obtain employment after completing the program of study. There must be a very valid reason for a discharge or cancellation of your college student loan. Be wise in your decisions about your college student loan before you make rash decisions that will only hurt you in the future. An unpaid college student loan can be a huge credit debt for you in the future, if you do not pay it off.
