Going back to school, will I lose 12 month Stafford payback incentive?

<p>I started paying my undergrad Stafford loans back in December 2010 via automatic payment. I am returning to school for a master's degree in October, just 2 months shy of the first 12 month payment period. Will I lose the "making your first 12 payments on time" incentive benefit, or is it rolled over to when I begin making payments again after graduating from my master's program?</p>


<p>i have no idea, but why can't you make those two payments while you're back in school? is that not allowed?</p>

<p>I'm sure it is allowed, but when does deferment actually start? I'm moving away for the degree and will be leaving my job so it might not be easy to make loan payments at first. I hope I can get a part time job when I'm a bit more settled and know my academic schedule.</p>

<p>The on-time payment incentive for Stafford loans is being eliminated as part of the debt raising deal. Also, the interest rate for subsidized Staffords goes up to 6.8% next year for undergrads and all loan subsidies are eliminated for grad and professional students next year.</p>

<p>Here is the answer I received from Direct Loans:</p>

<p>"Dear Direct Loan Borrower,</p>

<p>Thank you for your email inquiry. Periods of deferment or forbearance don't count toward the 12 months. The counter will resume when your deferment ends.</p>

<p>Your other loans will be eligible for rebates of their own as well."</p>

<p>The incentive is being eliminated for loans generated/beginning July 2012, it is still offered for loans taken out before then.</p>

<p>Thanks for sharing the info thatgirl. Useful to know.</p>