Loan Question

[pandulce321]

Advertisement - Members don't see this ad

I have subsidized stafford loans from undergrad. I will have to start paying interest on them in a few months (which will be 6 months after I graduated). I know that when you begin medical school the loans will be deferred again, but will the interest on the subsidized loans be deferred as well? Thanks for the help.

 

[08675309]

I have subsidized stafford loans from undergrad. I will have to start paying interest on them in a few months (which will be 6 months after I graduated). I know that when you begin medical school the loans will be deferred again, but will the interest on the subsidized loans be deferred as well? Thanks for the help.

the interest on the subsidized loans will be paid for by the government (just like when you were in undergrad--it was never "deferred" per say). technically the government is just paying itself, but that's kind of how it works. but so yeah, interest won't accrue while you are in school.

 

[Depakote]

This question is probably better for the Financial Aid forum.

Moving.

 

[Doctor Bagel]

the interest on the subsidized loans will be paid for by the government (just like when you were in undergrad--it was never "deferred" per say). technically the government is just paying itself, but that's kind of how it works. but so yeah, interest won't accrue while you are in school.

This poster's got it right! 👍

 

[alwaysaangel]

I have subsidized stafford loans from undergrad. I will have to start paying interest on them in a few months (which will be 6 months after I graduated). I know that when you begin medical school the loans will be deferred again, but will the interest on the subsidized loans be deferred as well? Thanks for the help.

Actually I have to disagree with the previous posters. As I understand it - once you enter repayment on subsidized loans they will never go back into true deferment. You can stop making payments again once you get into medical school, but I'm pretty sure they will no longer be subsidized.

 

[yadayadadude]

Actually I have to disagree with the previous posters. As I understand it - once you enter repayment on subsidized loans they will never go back into true deferment. You can stop making payments again once you get into medical school, but I'm pretty sure they will no longer be subsidized.

Are you sure? My husband's deferred loans from undergrad have been subsidized all during his (looooong) PhD.

 

[Leforte]

I did a year of college, took many years off, and went back. I was in repayment for the loans I took that year, but once I was a full-time student again, all interest was in deferment again. For the subsidized loan, the interest was paid by for by the governement until I completed medical school, and even further for the 3 years I had for economic hardship deferment. As I am now 4 years out since graduating, the subsidized interest is now accruing and will be capitalized once I enter repayment upon finishing residency.

 

[Doctor Bagel]

Are you sure? My husband's deferred loans from undergrad have been subsidized all during his (looooong) PhD.

No, they do go back into deferment even after you enter repayment. My loans are in repayment for a few years before I went to medical school, and they are now deferred with interest only accruing on the unsubsidized portion. You don't lose the right to deferment by going into repayment.

 

[alwaysaangel]

Ah ok my bad.

When I was taking mine out I called the lender to ask them and they said if I started repayment after medical school and then tried to go back into deferment (granted that would be hardship deferral so maybe its different) during residency the subsidized loans would no longer be subsidized.

He said once you entered repayment you could never go back to subsidized deferral. Maybe the guy I was talking to just didn't know what he was talking about. Thats actually really great news if what you guys are saying is true for residency deferral too, in case I want to take a year off after medical school.

 

[yadayadadude]

When I was taking mine out I called the lender to ask them and they said if I started repayment after medical school and then tried to go back into deferment (granted that would be hardship deferral so maybe its different) during residency the subsidized loans would no longer be subsidized.

He said once you entered repayment you could never go back to subsidized deferral. Maybe the guy I was talking to just didn't know what he was talking about. Thats actually really great news if what you guys are saying is true for residency deferral too, in case I want to take a year off after medical school.

There is no more residency deferral. See the million or so threads on this subject, here in this forum and elsewhere.

 

[alwaysaangel]

There is no more residency deferral. See the million or so threads on this subject, here in this forum and elsewhere.

Economic hardship deferral - whatever you want to call it. I heard they changed the number qualifications but when did they strike it out entirely? I'll be 250k in debt by then so I'm pretty sure I still qualify under the new numbers.

EDIT: Nevermind I see what you're talking about - well when I spoke to the banker it was last Spring, and from what people are saying it still seems like he didn't know what he was talking about.

I doubt I'll take a year off anyway, and I'm planning on going into full repayment during residency. That change in the law sucks for all the people planning on deferring though 🙁

 

[jakehealthcare]

I love the Stafford Loan. I mean you can defer, defer and defer some more till your done school at no interest gain. Then when you are all done you can consolidate and delay it even more.