Do student loans go to the school or directly to the student?

Student loans about to go to graduate school?

  • I graduated from undergrad last may. Im about to go back to school for my masters this august. My loans have been up for payment however since i have no job (yet) I haven't been paying on them. Im going to need a loan for the fall when I go back to school. What should I do right now? Do I need to request a deferment right now ? Or should i continue to not pay on the current loans and then just reapply for student loans in the fall?

  • Answer:

    You need to request a deferment or a forbearance. If you let them go into default (if they're not already) then you will not be able to take out any additional loans for grad school until you bring them back into good standing.

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Ideally, you should apply for an income based repayment plan and make payments. Howver, if you truly can't afford to make any payment at all, you should definately apply for a forbearance or deferment. If ignore the situation and your loans go into default you won't be eligible for either of those options and you won't be able to receive any further aid until you are out of default, a process that would take months.

nancy

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