Stafford loan questions

Paying for College
1

<p>A friend of mine is in a bit of a sticky situation. A while back, he went to school, as many people do. He got some subsidized and some unsubsidized Stafford Loans. He has been a few years out of school, and he has used up the 6 month grace period. He is also delinquent on the loans. Due to income problems related to not having a college degree, he hasn’t been able to make the payments.</p>

<p>He wants to go back to school. He can’t however afford it out of pocket. He needs to get another student loan to go back. To get financial aid, does he first need to completely pay off his original loans, or would it be sufficient to cease being delinquent on them and start paying them off?</p>

2

<p>See [Understanding</a> Default | Federal Student Aid](<a href=“http://studentaid.ed.gov/repay-loans/default#what-are-the]Understanding”>http://studentaid.ed.gov/repay-loans/default#what-are-the)

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3

<p>I am going to get on my soapbox now … never, never, never just stop paying back student loans. If you lose your job, don’t get a job, have a minimum wage job … whatever … contact your lender to discuss alternate repayment plans!!!</p>