Frequently Asked Questions about College Loans

When Will I Have to Pay my Loan Back?

Requirements for loan repayments vary by lender, but under most circumstances, as long as you remain in school at least part time, (6 credit hours), you will not be required to begin repaying back your loan. Once you graduate or drop below part time, there is often a grace period of six months to one year before you must begin paying back your loan.

What If I Can't Pay Back my Loan After I Graduate?

Speak with your lender immediately if you are having trouble finding work or other circumstances prevent you from paying back your loan as planned. They may be able to offer to defer your payments for a period of time, or it is possible, in some circumstances, to have your loan forgiven completely.

How Do I Get My College Loan Money?

Again, this varies by lenders. Since this money is primarily to be used to pay for your college tuition and expenses, often lenders will deposit the money directly with your chosen school or institution first, where your tuition and fees will be deducted automatically. The school will then return any remaining amount to you via check or direct deposit that you can use for buying books for your classes or pay for your living expenses.

How Much Money Can I Get?

That depends on your financial situation and who you turn to for the money. Some lenders have more stringent requirements for student loans and may require that you have a co-signer such as a parent, or even offer for your parents to take out the loan in their name completely. Under most circumstances, you should be able to get at least enough money in unsubsidized loans to pay for your tuition and books. How much you are offered may also depend on which school you are attending. Those students accepted to and attending Harvard University, for example, will probably be offered substantially more than students attending a local State or community college.

How Long Will I Have to Repay my Loan?

Again, this depends on the lender you choose. Usually 10 years from the time you begin repaying your loan.

Do I Have to Take All of the Money that is Offered?

No, you do not. Think of a loan offer as a maximum, not a single package. If you are offered a $5,000 loan, you can take all of it, none of it, or only $2,256 of it if that is what you need. This way you will only be responsible for repaying what you borrowed, not what was offered.

What are the Consequences of Not Repaying my Loan?

Refusing to (or being unable) to pay your student loan carries with it the same consequences of failing to repay any credit obligation including damaged credit, garnishment of your wages or legal action. College Loans cannot usually be discharged in a bankruptcy either, so even if you go through one, your lender will be there waiting for you on the other side, still expecting you to uphold your obligation. For more information about loans, check out some borrowing tips we offer.