What does "owe a repayment" mean for student loans?

Mark A. Siefert · 16th July 2009, 10:09 PM

I'm going to go back to school this fall and I'm reading the school's web page on financial aid and I noticed one of the requirement is:

Quote:

Not owe a "repayment" on any Federal grant or loan.

Not being able to speak Accounting-eze, I'm kind of confused about what this means. I took out a student loan to help pay for my last couple of years of college, and I've been making my monthly payments on time without fuss. Does this mean I can't take out any new loans until I'm paid off the old ones?

Audible Click · 16th July 2009, 10:38 PM

That's the way I read it.

Roma · 16th July 2009, 10:47 PM

I think you can get another loan if you are not behind in payments.

Several years ago I applied for another student loan even though I had defaulted on one decades before.
I was told that if I began to make payments on that old loan I would qualify for another loan.

the_smasher · 16th July 2009, 11:06 PM

The wording is a little off. Usually a "repayment" is specific to a grant; if a student is given more Pell grant than actually eligible the money has to be repayed before any new aid is given. As stated above a defaulted loan would also have to be put back in good standing too. The student loans you are currently making payments on may be eligible for a deferral once you start classes again. Check with your lender.

theprestige · 21st July 2009, 10:00 AM

Originally Posted by Mark A. Siefert

I'm going to go back to school this fall and I'm reading the school's web page on financial aid and I noticed one of the requirement is:

Not being able to speak Accounting-eze, I'm kind of confused about what this means. I took out a student loan to help pay for my last couple of years of college, and I've been making my monthly payments on time without fuss. Does this mean I can't take out any new loans until I'm paid off the old ones?

Most schools have a whole department full of admissions advisors, academic advisors, and financial advisors, any one of which should be able to answer this question (but of course the financial advisor would be able to give the most detailed answer, and offer the most comprehensive explanation of all your funding options). If you're serious about going back to school, you should probably meet with these advisors ASAP. In fact the school will probably set up these meetings automatically, as part of the application and admissions process.

jasonpatterson · 24th July 2009, 10:54 PM

Whatever that snippet does mean (I suspect it's referring to defaulted loans, as noted previously) you definitely CAN have existing student loans in good standing and return to school, borrowing further. As I recall, the only limits on federally guaranteed student loans are that they total $200,000 or less, with per semester limits as well.

16th July 2009, 10:09 PM	#1
Mark A. Siefert Illuminator Join Date: Jun 2004 Location: Muskego, WI. Posts: 3,169	What does "owe a repayment" mean for student loans? I'm going to go back to school this fall and I'm reading the school's web page on financial aid and I noticed one of the requirement is: Quote: Not owe a "repayment" on any Federal grant or loan. Not being able to speak Accounting-eze, I'm kind of confused about what this means. I took out a student loan to help pay for my last couple of years of college, and I've been making my monthly payments on time without fuss. Does this mean I can't take out any new loans until I'm paid off the old ones?
	__________________ "As the Corpse Lord knows, men today are ill-trained--ignoble: naught but wet anuses dribbling childish terrors and superstitions! Thus is knowledge--history, science, the world of the ancients--lost, never to be regained!" --M.A.R. Barker, "The Man of Gold"

16th July 2009, 10:38 PM	#2
Audible Click The gap in the plot Join Date: Jul 2008 Location: BFE Posts: 2,037	That's the way I read it.
	__________________ A great many people think they are thinking when they are merely rearranging their prejudices.-William James. www.StopVisionFromFeeling.com

16th July 2009, 10:47 PM	#3
Roma Graduate Poster Join Date: Aug 2008 Location: Winnipeg, Canada Posts: 1,083	I think you can get another loan if you are not behind in payments. Several years ago I applied for another student loan even though I had defaulted on one decades before. I was told that if I began to make payments on that old loan I would qualify for another loan.
	__________________ I only know what I want to know.

16th July 2009, 11:06 PM	#4
the_smasher Scholar Join Date: Jan 2008 Posts: 63	The wording is a little off. Usually a "repayment" is specific to a grant; if a student is given more Pell grant than actually eligible the money has to be repayed before any new aid is given. As stated above a defaulted loan would also have to be put back in good standing too. The student loans you are currently making payments on may be eligible for a deferral once you start classes again. Check with your lender.
the_smasher Scholar Join Date: Jan 2008 Posts: 63

24th July 2009, 10:54 PM	#6
jasonpatterson Philanthropic Misanthrope Join Date: Apr 2009 Location: Macedonia, OH Posts: 908	Whatever that snippet does mean (I suspect it's referring to defaulted loans, as noted previously) you definitely CAN have existing student loans in good standing and return to school, borrowing further. As I recall, the only limits on federally guaranteed student loans are that they total $200,000 or less, with per semester limits as well.
	__________________ Sandra's seen a leprechaun, Eddie touched a troll, Laurie danced with witches once, Charlie found some goblins' gold. Donald heard a mermaid sing, Susie spied an elf, But all the magic I have known I've had to make myself. - Shel Silverstein

21st July 2009, 10:00 AM	#5
theprestige Master Poster Join Date: Aug 2007 Posts: 2,099	Originally Posted by Mark A. Siefert I'm going to go back to school this fall and I'm reading the school's web page on financial aid and I noticed one of the requirement is: Not being able to speak Accounting-eze, I'm kind of confused about what this means. I took out a student loan to help pay for my last couple of years of college, and I've been making my monthly payments on time without fuss. Does this mean I can't take out any new loans until I'm paid off the old ones? Most schools have a whole department full of admissions advisors, academic advisors, and financial advisors, any one of which should be able to answer this question (but of course the financial advisor would be able to give the most detailed answer, and offer the most comprehensive explanation of all your funding options). If you're serious about going back to school, you should probably meet with these advisors ASAP. In fact the school will probably set up these meetings automatically, as part of the application and admissions process.