When Do I Repay My Federal Stafford Student Loan

Q:I have taken out some federal student loans for college, and because I cannot get a private student loan to cover the cost of next years expenses, because I do not have a co-signer with good enough credit, I am thinking about dropping out, working for a year and then returning after I have saved some money. I have taken out some federal student loans for the past years, when do I repay my Federal Stafford Student Loans if I am not graduating?

A: Repayment of a borrowers Federal Stafford Student Loans will begin six months after the student graduates, withdraw from school, or drops below half-time /part-time enrollment. This six-month period, called a grace period, gives the borrower time to determine their financial situation and make any adjustments to their budget to prepare for student loan repayment.

At the end of your grace period, you must begin making monthly student loan payments. Your monthly student loan payment amount and the amount of time you have to pay off your student loan depends on the amount you borrowed, whether or not you receive a deferment or forbearance, and the repayment option you choose. So regardless if a student graduates or not, they will still only have a six month period of grace to get themselves in a position to begin making payments on their student loans.