Let’s say I’m at the end of the semester and decide to take this choice, what’s next?
Do I have to pay both to the college and the student loan, or only the student loan?
I would appreciate a through explanation, this isn’t for me as much as it is for my partner who is going through this and would appreciate any advice and explanations on the matter.
If I Take A Student Loan for One Semester and Then Drop Out of College, What Happens?
byu/Thackery-Earwicket inStudentLoans
Posted by Thackery-Earwicket
6 Comments
I believe you can either get them to disburse the rest of the loan as a refund or ask them to cancel and return the part of the loan you didn’t use. Either way, if you used part of the loan for school, you will have to pay that amount back to your servicer.
You would have already paid the college with the student loan. After dropping out you would need to pay the loan back.
This how all loans work, you get money for something and then you pay it back
1 Student Loan: You owe this. First payment is 6 months after last class (ladt day if semester typically). Interest keeps accruing though.
2. College, just don’t enroll next semester. You can choose to drop all classes now if that is still an option.
The college was paid by the student loan, supposedly. If you’re (or your partner is) paying one, you shouldn’t have to pay the other. Either way, the College generally won’t garnish your checks for one semester.
You’ll have 6 months to figure out how to start paying your student loans, but I suggest paying them as soon as possible out they will grow wildly out of control.
It should have been disbursed for one semester at a time, so if you drop out after one semester, the College will return the unused funds to the government themselves. Make sure you let the College know that you’re not enrolling for the next semester.
Any additional questions, your college’s finaid office should be able to answer.
The loan.
Just want to add that each college allows reimbursements of funds up to a certain point. It’s something like 100% reimbursement before classes start, 50% by add/drop deadline and then usually nothing after that.
Double check you schools financial deadlines for those specifically.