When pay back grad student loans if doing postgrad?

Question

If I'm doing a postgrad program, straight out of grad school, when should I start repaying grad student loans (direct, FAFSA stuff)? Will there be a penalty if I don't start repaying grad school loans until after I graduate from the postgrad program? And will this impact my ability to get loans for postgrad? Help!

Answer 1

Depending on how many credit hours you are taking, you may be able to defer, which incurs no penalty. You have to be considered at least a part time student to defer. If you are just taking one class at a time, or less than 6 credit hours, you will need to start repaying on your loans when they become due. I would contact your loan provider and check it out. If you haven't started owing yet and qualify for deferment, try to put your account into deferment status prior to your first month due so that you won't need to pay it if you can't afford it right now.



However, I will say, if you CAN afford to repay while you are doing your post-grad program (depending on how much you make working and all), then do it because it will save you possibly incurring more interest on your grad loan, and getting started on paying it back sooner will mean that it is paid off sooner, which is obviously more financially sound.

Answer 2

If you don't qualify as a student anymore, then you need to begin paying them. If you can't afford to pay them then you need to apply for an economic hardship deferment. Except for the additional interest, there aren't any penalties, but you have to pay them or get a deferment, or they will go into default.

Answer 3

In the UK you have 25 years to pay it off from when you graduate (for under and post). After 25 years you don't pay anymore however much you've managed to pay off in that time. You only pay when you earn a minimum of £15,000 a year or thereabouts.