M.Anyone who drops out of college America Without graduating, but probably unaware of what that means for their student loans. Read on to see how dropping out can affect your loan status.
Dropping out of college before completing a degree is actually quite common. In fact, only 62% of students get a bachelor’s degree within six years of starting their studies.
However, not having a degree does not exempt students from debt. In rare cases, a loan may be forgiven if you drop out of school.
What happens to my loan if I drop out of college?
When you drop out of college, you will most likely have to start paying off your loans. However, some lenders may allow a grace period of six months.
Be sure to check the terms set by the lender, as they vary. Federal loans usually have a grace period, but this may not be the case with private lenders.
In many cases, even if you drop out, you will have to return the grant you were given. This may be proportional to the hours studied on the grant.
What happens if I reduce my study time to less than half-time?
Some people may think that repayment will start just by graduating or dropping out, but you need to be careful. If you started out as a full-time student but cut your workload by half or more, this often means you need to start paying off your loans.
Falling below halftime is usually considered a college dropout, whether it’s a federal or private loan. Therefore, repayment starts, but he is often given a grace period of six months before starting to pay.
What if I can’t pay my student loans after dropping out?
- Apply for a repayment plan based on your income
- request grace or deferment
- contact the landlord
- loan refinancing