General Question

lbwhite89's avatar

Why are they already billing me for my student loan?

Asked by lbwhite89 (1208 points ) February 26th, 2011

In 2009, I took out a Stafford Loan and was told I wouldn’t have to pay on that loan until I graduated high school. I got the loan again the next semester and this past semester. It’s one that doesn’t accrue interest until you graduate.

Well, I’m about to transfer to a 4 year university and I’m still enrolled as a full time student. Today I got a letter stating that my payments would start as early as next month for the loan.

I signed on to their website to access my information and it looks like they have listed that I took out two totally separate loans and that one is in the grace period and one says the status is “In School”.

I’m still a student, so I shouldn’t have to pay these until I’ve graduated. I don’t understand why they’re saying the payments are starting. Does anyone know why this might be?

It’s only $50 a month, so it’s not a huge deal, but are they going to make me pay on all of my loans each semester? I was under the impression that these loans just built up each semester and I paid it all off after I was out of school, just like my friends are doing.

I just don’t get it. Any ideas?

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12 Answers

MyNewtBoobs's avatar

Why were you taking out a loan for high school? I thought they were only for higher education.

Blueroses's avatar

Call them on Monday (or talk to your counselor) and consolidate the loans. With a Stafford, you should be able to get them both to roll to the later one due.

lillycoyote's avatar

As @MyNewtBoobs mentions, I wasn’t aware that you could take out a Stafford loan for high school. To pay for a private high school? How is that done? Unless you’re 18 or possibly an emancipated minor you can’t even sign a legally binding contract on a loan, I don’t think.

lbwhite89's avatar

SORRY! I meant college. I was multitasking. My mistake. It’s college.

MyNewtBoobs's avatar

@lbwhite89 Ah, ok. So much better. Then you just go in and talk to financial aid – you don’t have to start paying anything back until you’re out of school for 6 months, so you can transfer to a 4 year, then go to grad school, then another grad school, whatever, without paying them back.

lillycoyote's avatar

Yes, talk to your financial aid officer. Stafford loans have pretty strict, standard rules governing when you have to start paying them back and what your student status is in terms of enrollment it. There may just be a glitch in the paperwork; glitches are not uncommon. Maybe it involves the transfer to another school. It should be pretty easy to sort out.

And @MyNewtBoobs or whatever your name is now :-) Good advice, as long as you don’t mind having to rent a series of student apartments and drive a series of $900 cars for the rest of your life. I considered it, really, the idea is very, very tempting.

talljasperman's avatar

some student loans have to be paid back if you take a break between semesters

lbwhite89's avatar

@talljasperman Well last semester I dropped my courses because I decided to switch majors. It was too late in the semester for me to pick new classes, so I had to take the semester off. I picked right back up as a full time student this semester. So, does that mean I’m screwed? I’m still enrolled in school, so I don’t see why a semester makes a difference.

lillycoyote's avatar

@lbwhite89 You’re not screwed. These are bureaucracies. They don’t exactly turn on a dime. The paperwork that showed that you dropped your classes, and set of the repayment notice, if that’s the problem here, may have crossed with the paperwork that indicates that you are now a full time student, which would exempt you from having pay back your loans right now. Chill. Talk to someone in your school’s financial aid office and they can help you straighten it out. That’s what they’re there for.

BarnacleBill's avatar

It sounds like your student status was entered incorrectly, and you were disenrolled from School A for the one loan without being shown as enrolled in School B as a current student. You will just need to send them student status verification for the loan that is not reporting correctly.

Seelix's avatar

You should be able to apply for deferment or interest-free status. I have similar student loans through the Ontario government, and they’ve tried to make me pay a few times without realizing that I’m still in school (I’m now in my 7th year of university, between undergrad and grad school). Contact them and find out what they need – it’s probably something as simple as a confirmation of enrolment signed by the registrar.

Simone_De_Beauvoir's avatar

They’re always screwing everything up. Don’t pay anything and call them first thing.

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