I suppose this is a newbie question that I should be able to figure out otherwise.. but I've never gotten financial aid before, ever. Last time I was in school (community college) it was 14 years ago and I just paid for it out of pocket.

My GF and I BOTH want to return to school (again, community college) this coming fall. We have four kids between us, so we were really counting on financial aid so we wouldn't have to work more than part-time... both of us have lots of fear about not doing well in school after being out for so many years while raising kids. We don't want to have such a full plate that we drive ourselves to failure.. i.e. four kids, full time school, full time jobs.

We hope to go full time and have jobs where we can work 15-20 hours a week, and do all of this during "school hours" for the kids so we only have to worry about childcare for the youngest (she's 2.5 and her dad will watch her)...

So anyway, here's the point of my post (sorry!)... it has been suggested to us by others that we NOT try to go to school simultaneously, that it's asking for trouble. GF is going for a one year (9 months actually) "certificate" program and I'm going for a 2 year Associate's Degree program. IF we take out student loans and after a semester or two decide it's not working out and that one of us needs to quit to work full time and help "hold down the fort" for the other to finish school, what happens with the student loans for whichever of us quits? How long until we have to start paying on them?

Is it possible to take a short break and be allowed not to pay for a while? For example, if I were to be the one to quit, it wouldn't take long for her to finish, then when she was done I could return.. that sort of thing.

Hopefully it won't come to that and we will both be able to handle it, and the kids, and working, and be okay, but just in case, I don't want to do anything that's going to make our lives more problematic.

Thoughts?

Sheri

If the rules haven't changed since I last took out student loans, you have a 6 months grace period...at least this was true for my Stafford and I think my Perkins loans too. You can re-enroll in school and restart the clock again as long as you enroll at least half/part-time status (6 credit hours.) Some will loans have a shorter grace period and some will allow you to defer principle payments but will require you to make interest payments. Again it's all up to the particular loan program you sign up for.

Thanks!

It sounds like it would be workable. As long as it was not an immediate thing... like you're out for one semester and they hit you with it ASAP or something.

Sheri

You don't really "start the clock again" at least not in terms of the grace period. Re-enrolling in college would put your loans in deferment, but you'd be responsible for starting to pay immediately if you haven't arranged for a further deferment as you've already used your grace period. At least that's how my SL creditors explained it to me.

But yes, you get a 6 month grace period upon leaveing school/graduating before starting payments

For subsidized stafford loans you have a 6 month grace period. If you cease attending at least 1/2 time, you go into repayment after that 6 month period. If you stop going to school for say 5 months and then resume attending -- the school will send enrollment information to a clearinghouse and your payments will be deferred again. Although I would not use the terminology of "starting the clock again" -- that is essentially what happens. The clock DOES start all over and you will go into repayment if you cease attending at least 1/2 time for 6 months.

There are two types of deferment - economic and unemployment. You should be able to get another 6 months deferment for unemployment (under 30 hrs. per week), and economic hardship or forbearance up to 36 months. Check with your lender for details.