I am currently thinking about taking a gap year and then maybe (probably) end up dropping out of college and I would like to know how my student loans would be effected. I am not the most knowledgable on how it all works.. but I want to see if there are options for smaller repayment plans or deferred plans that won’t completely skyrocket my interest :/
I want to drop out and go backpacking
byu/Loud_Signature_8825 inStudentLoans
Posted by Loud_Signature_8825
3 Comments
Modern federal student loans get one six month grace period before payments are due. Then you can put federal loans on an income driven repayment (IDR) plan.
Make sure your student loan account has up to date contact info for you, and don’t forget to check the email. I don’t know if the bug has been fixed, but it used to be the case that a borrower couldn’t apply for an IDR plan using the online form until after the loans entered repayment. The workaround was uploading a pdf application.
Dropping out does not absolve you of the obligation to pay the loans back (maybe you aren’t asking this, but there are people who drop out and think this).
How close are you to a degree? Debt and no degree isn’t ideal.