Student Loan Question

General Questions
#1

I finished school with a MA in econmics about 14 years ago. I am currently considering an online study for a B.S. in Sutainability Management fro thhe University of Wisconsin.

I currently have considerable student loans which I have been paying off very regularly for as long as I have had them.

Now if I read the stuff correctly, if I take 6 credits a semester in this online class I can defer all my student loans. Am I correct? If so, when I start paying am I just at the same repayment schedule as before with the same interest rate (my current rate is a nifty 2.25%)?

#2

My last semester of college, I only had one class I needed to take, but in order to keep deferring my loans, I ended up taking a couple nonsense courses to defer my loans.

It’s not exactly the same situation, but I think you should be able to. I’ve learned the best people to talk to are the people in the Bursar’s office. They know better than just about anyone the policies and procedures regarding student loans.

#3

It really depends on the details of your student loan. In general, federal student loans can be deferred, and in addition they don’t earn interest during that period (the government pays the interest for you). Loans from private banks can usually be deferred, but they will accrue interest during deferment periods.

Interest rates shouldn’t change because of deferment (though variable rates will still be variable…) but you should find the terms of the loan or contact the lender to be sure.

#4

One nitpick, subsidized federal loans do not accrue interest during deferment. Unsubsidized start accruing interest when they are disbursed and continue until the loan is paid off.

I took a single course part-time, for work purposes, and they deferred my loan during that time. I don’t think that should have happened, but I wasn’t going to complain about it.

#5

Ask the administrator (servicer) of your loan. Not all student loans are the same.