How does this happen?

Paying for College
1

<p>My D1 is home for the summer and taking 1 class at the CC for which we paid cash. Today we got letter from Direct Loans saying that she is done with the CC on 8/31 and her loans are coming due. I’m sure we can get it cleared up with a few phone calls but really how does this happen? We never did any financial aid for the CC so how does the gov. even know she is attending there? Seems pretty big brotherish to me.</p>

2

<p>Is your daughter attending school somewhere else for the fall semester? If so, any student loans would be deferred as long as she is full-time.</p>

3

<p>Attendance in college is reported by many schools through a national clearinghouse. This information is then communicated to the loan servicers. The purpose is very clear: Student loans become due 6 months after a student ceases to be enrolled in classes on a less than full time basis. Tracking enrollment is a necessity.</p>

4

<p>I guess I didn’t really think of that- but she is only taking a 3 credit summer school class- she is not even a fully admitted student-they have a special admit status for kids taking one or two classes over the summer. She is still enrolled full time at U of MN for the fall semester-something the CC is aware of as that is part of the special admit status. I know it’ll take couple of phone calls to clear this up- so far the Direct Loan people have not been very helpful and referred us back to the CC and U of MN</p>

5

<p>If you wait long enough, U of Mn will then report her status in the fall. I would just wait. Once fall comes you can easily get a statement, if needed from the U. At D’s U it is called a “certification” request. The U certifies she is a student and you are done. They issue it once the first day of class has occurred for registered students.</p>

6

<p>Don’t wait…especially if they you have a payment due. If you are late for the payment OR don’t reconcile the situations, your deferment status would be in jeopardy. </p>

<p>This happened to my daughter (who thought she had DONE a deferral form before going into the Peace Corps). She had…but her date of exit for college was listed incorrectly. I straightened it out IMMEDIATELY not wanting to worry about jeopardizing her deferral status.</p>