College Loan Frequently Asked Questions

Here are some frequently asked questions about college loans. Read through these questions and answers to learn more about college funding.

How Much Loan Money Can I get?

This depends on a lot of factors such as what school you're going to, and what your current earnings are like, in the case of private loans, your credit, or that of your parents, will also be taken into consideration.

When do I Have to Pay the Loan Back?

Under most circumstances loan payment begins about 6 months after you graduate from college or if you drop out or below part-time.

Can I File Bankruptcy to Get Out of a Loan?

No. Student loans are federally protected from being subject to bankruptcy rulings.

What if I Get Permanently Disabled?

There are programs available that will allow your student loan to be forgiven under certain circumstances such as if you become totally disabled.

How Long Do I Have to Pay Back a Loan?

10 years is usually the maximum amount of time given to repay a student loan. This period can be extended for various reasons such as through deferments if you fall on hardship.

Can I Pay Off My Loan Early?

There usually is no penalty for early loan repayment. A few private lenders may be exceptions to the rule, however.

Do I Have to Accept the Full Amount I am Approved For?

No, you do not. If you apply for a private or federal student loan and are approved for more money than you need or feel comfortable borrowing, you are free to accept any part of, or none of the loan at your discretion. It is highly advisable to only borrow what you need per semester.