Student Loans FAQs

When do I have to start paying off my student loans?

Normally, a student is allowed one 6-month grace period after they stop attending school at least half time. At this point, it is the responsibility of the lender to contact the student to let them know how much the payments will be and how to make them. If the student decides to go back to school, they can obtain a deferment so they do not have to continue payments while taking classes.

What is an unsubsidized student loan?

With unsubsidized student loans, the student is responsible for the interest that accrues over the life of the loan, from the time of disbursement through repayment of the loan. Interest accrued on this type of loan can be paid at any time while in school or during a period of deferment of forbearance to help lower the interest capitalization and monthly payments.

What is federal student loan forbearance?

Forbearance is one way to temporarily postpone or reduce payments for a specified amount of time. This normally takes placedue to the borrower experiencing financial difficulty for reasons such as unemployment, disability, or other documented hardships. The borrower may receive forbearance if they are ineligible for a deferment.