@arjames01 wrote:
I have several federal and private student loans through Chase. (I like to keep most of my banking there). Well I am a junior, and I have set up a savings and trying to save up some cash for when I graduate hopefully I'll have a couple of months worth of SL payments already banked. Well I am said to graduate around 2011 I have some loans that say repayment begins in 2013? How is that going to work? I thought once you graduated 6 mo after you begin repayment?
I ran into this scenario a lot when I consolidated student loans. The servicer wouldn't release the loans (after we sent the loan verifications to consolidate them) because the student was still showing in school status, when in reality, they already graduated. All this has to do with your school. Your school reports to the servicer when you are expected to graduate (or withdraw or fall below half time). After which time, the grace period begins and six months later you go into repayment.
With reference to private loans, I used to originate, consolidate and collect those. You will find all private loans go into repayment six months after you separate from school (or withdraw or fall below half time). The only difference is, once you go into repayment on the private loans, you can't put them back into an in school deferment again, even if you go back to school. Similarly, if you take out a private loan for an undergraduate degree, that loan goes into repayment six months after you are done with your undergraduate degree, even if you are going to graduate school directly thereafter. One of the many pitfalls of private loans...
And once you exhaust your grace period, there is no more. For federal loans, if you do an in school consolidation (if the government permits that again), you will forfeit your grace period.
Oh and for the federal loans, you can always check in NSLDS for your graduation date, as reported by your school. http://www.nslds.ed.gov/nslds_SA/
sounds crazy I know, but I dont want SL debt on top of a house, car etc loans.