It will not ‘void’ the grace period and you will have to begin repaying the loans 6 months after you leave school. If you go back to school, you will go back into deferment on these loans. However, if you drop out, you may not get more loan money for a future semester until you have made academic progress (SAP). If this is your first semester, you probably have half that amount in loans (not $5500 but $2750).