if a student consolidates educ loans,starts repayment, then returns to school, can repayments be suspended?
My daughter is starting nursing school in January, ‘07. Her grace period for loan consolidation ends in Nov. 06. She plans to start repayment in Nov/Dec as required, but wants to suspend when she begins her nursing course in January. Thus, the question, can repayments be suspended? If so, when she begins payments again, at what rate will she be paying—when she left off or at the new rate when she restarts?
If her loans are thru the Dept Of Ed, yes. Anytime a person who was a student and has educational loans then returns to school, she can get a forbearance for a certain length of time. But I would look into if the loans are subsidized or not…interest still accrues on the unsubsidized loans, where no interest accrues for the subsidized ones. If there are unsub’d loans I would suggest that she pay what she can on them, due to the interest. Go here for more answers:
http://studentaid.ed.gov/PORTALSWebApp/students/english/returning.jsp
I wish her the best of luck!!
