Federal Subsidized Ungrad Loans

[SmileItsLife]

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Hey,

If I get into Dental School, I will defer all of my Undergrad loans. Will my subsidized loans gain interest during school deferment? Or are these loans just subsidized for my Undergrad career?

Sorry if this a dumb question. My financial consoler at school is booked for a week, and the internet says conflicting stuff.

 

[dr.d00m]

Hey,

If I get into Dental School, I will defer all of my Undergrad loans. Will my subsidized loans gain interest during school deferment? Or are these loans just subsidized for my Undergrad career?

Sorry if this a dumb question. My financial consoler at school is booked for a week, and the internet says conflicting stuff.

If you are able to get the loans deferred, then you will NOT have interest accrue until the deferment period is over (after you finish dental school). This is only for subsidized loans, because unsubsidized loans continue to pile up in interest no matter what you do. Make sure your loans don't go into forbearance because interest will continue to accumulate. Definitely talk to your financial counselor though

Here's a source that lays it out in a way that's easily understood: https://studentaid.ed.gov/sa/repay-loans/deferment-forbearance

 

[SmileItsLife]

Thank you! The article really cleared everything up.

Follow Up Question: You said IF you get the loans deferred. Is that uncommon?

 

[WaveRace]

You will be able to get your loans deferred if you are enrolled in school (including dental school). Don't worry about that.

The only time this is an issue is if you take a gap year before dental school. Your grace period will expire and you will have to either start making payments on your loans, get them deferred, or put them into forbearance. You have to ask to get them deferred instead of put into forbearance, but it's up to the loan provider. I believe the difference is whether or not interest is accumulating.

It's a bit more complicated than that, but that's the basic idea. Be sure to read into all of your options if you take a gap year.


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[whaleofatale]

Thank you! The article really cleared everything up.

Follow Up Question: You said IF you get the loans deferred. Is that uncommon?

As long as you are enrolled at least half-time at an eligible institution you will qualify for in-school deferment on all Federal Direct Subsidized Loans borrowed during undergrad. These loans will not accrue during interest during periods of deferment.

 

[whaleofatale]

You will be able to get your loans deferred if you are enrolled in school (including dental school). Don't worry about that.

The only time this is an issue is if you take a gap year before dental school. Your grace period will expire and you will have to either start making payments on your loans, get them deferred, or put them into forbearance. You have to ask to get them deferred instead of put into forbearance, but it's up to the loan provider. I believe the difference is whether or not interest is accumulating.

It's a bit more complicated than that, but that's the basic idea. Be sure to read into all of your options if you take a gap year.


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If a student burns their grace period and enter repayment prior to re-enrolling, they are still eligible to defer their undergraduate loans when they enroll in dental school. The catch is those loans will go into repayment immediately upon graduating, whereas a student's dental loans would have a six-month grace period. As long as a student is enrolled at least half-time at an eligible institution they are eligible to defer payment during dental school, regardless of whether the grace period was already used.

 

[WaveRace]

If a student burns their grace period and enter repayment prior to re-enrolling, they are still eligible to defer their undergraduate loans when they enroll in dental school. The catch is those loans will go into repayment immediately upon graduating, whereas a student's dental loans would have a six-month grace period. As long as a student is enrolled at least half-time at an eligible institution they are eligible to defer payment during dental school, regardless of whether the grace period was already used.

Right. Thanks for expanding on this. Also worth noting that loans can be deferred during at least part-time enrollment in grad school as well. Ie, you can defer while in grad school, then defer again during dental school.


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