Unsubsidized Student Borrower Loans: Repayment while in school

DavidPuddy
Fri, 27 Apr 2018 19:38:35 +0000

A need a reminder on unsub student loans.

Stay with me … there are follow up questions…

For Unsubsidized Student Borrower Loans, I know that payments can be made against them immediately. Many folks pay interest against them, for example, right away. In this manner, you “know” what your loan balance will be upon graduation. I also know you CAN start paying against principle as well.

The questions are: is there a change in status if you pay only interest? Is there a change in status if you pay against principle? Said another way, do the loans go in to official repayment status and require monthlty payments once you have started paying against them (P or I), or does repayment status not start regardless until X months after you stop being enrolled as a full time student?

The first corollary question here is, when do the loan servicers start reporting to Equifax, TransUnion and Experian? Is it upon voluntary initiation of repayment, even if the loan is not in repayment status?

The second Corollary question is, Does having a loan being paid actively preclude one from securing the “second half” next semester?

The third corollary question is, do the loan servicers report loans as “paid - closed” with on time payments if the loan has been repaid very quickly, for example 3 or 4 months after disbursement?