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What happens to my graduate student loan if I do NOT take any courses for a semester?

Frequent Contributor

What happens to my graduate student loan if I do NOT take any courses for a semester?

What happens to my graduate student loan (most likely Stafford) if I do NOT take summer courses? In other words, I take 6 credits in fall, 6 in spring, and none in the summer? Do my payments start?
 
On the other hand, what I took off in the fall or spring, instead of summer?
 
Thanks!
3 REPLIES
Valued Member

Re: What happens to my graduate student loan if I do NOT take any courses for a semester?

As long as you are taking classes (at least 1/2 time)  the fall after you take the summer off your payments, or you grace period,  wont start.  If you are not taking classes, then your 6 mth grace period starts.  Its very common for students to take the summer off.
 
As for taking fall or summer off, most lenders start the grace period, but as soon as you enroll in classes for the next semester (and your school completes the proper paperwork) -in this case summer - your status is again changed to student with no payments.

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Contributor

Re: What happens to my graduate student loan if I do NOT take any courses for a semester?

Summer shouldn't count - it doesn't with Federal Loans - since most people don't take summer courses. Check with your lender.  If you take a semester off, or drop below the minimum credits, the loan will enter the grace period.  Not to worry, if you register the following semester, it will change back.  That happened with my Federal loans one semester when I dropped a class (I was part-time). 
Established Contributor

Re: What happens to my graduate student loan if I do NOT take any courses for a semester?

Just remember that you can only use your 6-months grace from ~undergraduate~ loans once.  You don't get another period like that on undergrad loans once you graduate from, or leave, graduate school.  So at the point you're registered, in my case with Sallie Mae, for less than half time in grad school, they start the undergrad payments right back up.  Easy to rack up a 30-day late because they don't necessarily let you know timely.  I thought all my loans would start repayment six-months after I graduated from grad school--Surprise! my undergrad loan monthly payment was due one week after I graduated!