Question
What happens to your federal student loans if you drop out of school? You have to start repaying them after your grace period You don't have to repay them until you finish school at a later date You don't have to repay them at all You have to repay them in full upon the end of your grace period
Answer
4.6
(200 Votes)
Ibrahim
Veteran · Tutor for 11 years
Answer
A
Explanation
Federal student loans are provided by the government to help students pay their education expenses. If a student drops out of school, the status of their student loans doesn’t remain the same. They don't have to repay them right away; there is a grace period, typically six months for borrowers who have federal subsidized, unsubsidized or Direct loans, which is the job loss protection built into the federal student loan system. The aim is to provide those who are struggling with an opportunity to regain their footing. Once the grace period ends, repayment of the loan begins whether the student has graduated from the program or has dropped out.