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 Posted: Mon Nov 03, 2008 8:14 am Subject: Going back to school...what happens to my loans? |
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Good morning,
I currently have a consolidated federal loan with a total outstanding principal of $20,436 at 3.5%. I am making arrangments to get back to school for another 4 year degree (undergrad, not grad) next year (full time student). I plan on continuing to make the regular monthly payments on this loan during that time.
When I apply for financial aid...will the other loans add on to this current one and will they go into forbearance at that time until I graduate again? If they do go into forbearance...can I still make payments each month? If that's the case, will that payment only go to principal?
Thanks for your help!
~ Debra
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debrag_25
Joined: 10 Jan 2007
Posts: 221
Debtcc Points: 3000
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| Posted: Mon Nov 03, 2008 10:50 am Subject: |
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Your loans will go back in deferment...not forebearance when you return to school. There is a significant difference between the two terms. You are entitled to deferments, whereas forebearances are administrative and subject.
If you have any unsub in your consolidation mix, the interest will continue to accrue on that portion plus any additional unsub you borrow. Any payments made will be applied to interest first, then principal.
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SOAPLADY
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| Posted: Mon Nov 03, 2008 12:11 pm Subject: |
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Deferment...that's the word I was looking for!
I believe that all my loans are sub...I will confirm but I do believe that's the case. Either way I'm going to continue making payments...wouldn't hurt. Thanks!
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