My loans are still deferred but shouldnt be

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My loans are still deferred but shouldnt be

Postby Uyuro » Sun Mar 10, 2013 9:09 am

My student loans (a mix of subsidized and unsubsidized government issued loans) are still in a deferred state despite the fact that I have been out of school for nearly a year now. I completed my undergraduate studies and then started in a fully funded PhD program, however, I left that program almost exactly a year ago today. My student loans came out of deferment around December of last year, I setup automatic payments for my account, and after taking my first payment the loans are back in deferment until 2016. From an ethical standpoint it seems like the right thing to do is to call and have the status of my loans changed, but strictly from a financial perspective it makes more sense to pay them off in the deferred state. Does anyone know the legal ramifications of doing this? Am I liable to be charged penalties and for the interest that would have been charged had my loans not been deferred?
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Re: My loans are still deferred but shouldnt be

Postby iGrad-FinLit » Wed Mar 20, 2013 3:35 pm

Uyuro,

I can't speak to the legality, but I've counseled student loan borrowers for 12 years and have never encountered a scenario where fees were imposed or back-interest was assessed in a scenario like this. I have seen this happen many times, and it usually occurs because your last school never reported your separation date. You may want to check on this at http://www.NSLDS.ed.gov. After logging in, you will see all of your federal loans listed. A code will tell you why they are deferred (IS for "in-school", GR for "grace" etc) and should also list the estimated date that repayment will begin.

Good Luck!
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