Hello! I am currently a student, but I’m taking this semester off to work on my physical health and determine what’s going on. I’m hoping to go back in August, and I have only taken off this spring semester so far. My question is, since the grace period ends in June, and I’m on a leave from my school, will I have to start paying or is there a way to extend it? Further, if I need to take off more time, how long can I extend that period?
Posted by percival_75
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Your loans will go into repayment at the end of your grace period, reach out to your servicer to ask about forbearance if you can’t pay. Every school handles leaves differently, if you’re talking about a leave of absence vs. a withdrawal. At my school withdrawals need to reapply, while leaves work with the counseling & health office to come back or extend the leave. You should talk to whoever approved your leave in the first place.
Assuming federal student loans here….
Modern federal loans get one six month grace period, or grace period analog. The grace period starts when your school reports you no longer enrolled at least half time to a centralized database. If you haven’t reenrolled at least half time by the end of the six month period from report date, then your loans will enter repayment. If you do reenroll within this six month time frame the grace period will reset. In practice there is sometimes a reporting delay about a change in enrollment status.
If your loans do enter repayment after the grace period, put them on an an income driven repayment plan.