Leaving School? What Happens to Your Student Loan Debt – US News & World Report
- December 21, 2020
- By: Greenpath Financial Wellness
Leaving college is a complicated and personal decision, especially when you have student loans. The US News & World Report website “Student Loan Ranger” shared GreenPath’s insights about student loan debt when leaving college.
For those who have decided to permanently leave school, it’s important to note that all student loan debt must be repaid. Typically, federal student loan borrowers leaving school have a six-month grace period following withdrawal. Toward the end of that time, the student loan bills will begin to arrive.
Even if you have already thought about your student loans before dropping out of college, it pays to carefully understand all the potential impacts. You’ll want to protect against the possibility of student loan default. Research indicates that a large percentage of student loan borrowers who default are those who don’t complete their studies.
What to Consider
In the article, we describe the steps to work through if you are leaving school, including working with your school’s tuition policies, and steps to identify repayment options.
Although it can be stressful managing student loan debt, especially if you have decided to withdraw from your studies, working with a nonprofit counselor can be helpful.
GreenPath’s experts can walk you through your options when managing your student loan debt. 91% of people served by GreenPath feel better prepared to handle their finances. Together let’s make a plan for managing your full financial picture to support your goals.