What happens to my loans if I transfer schools?

I'm thinking about transferring to a different college, and I'm curious about how my student loans will be affected. Will I have to start repaying them, or will the transfer affect the terms?

If you transfer to a different college, your student loans could be affected in various ways.

First off, you won't need to start repaying your loans immediately if you transfer, as long as you stay enrolled at least half-time. As per the conditions of most student loans, repayment usually begins after a six-month grace period when you graduate, leave school, or drop below half-time enrolment. Hence, as long as you transfer and continue your studies without a break of six months or more, you shouldn't press the start button on repayment right away.

However, keep in mind that any semester in which you're not enrolled could use up part of this grace period. If you took a semester off before transferring, for example, this might be something to consider.

You should also notify your loan servicer about your transfer so they can adjust their records. You might also need to update your school codes on your FAFSA so your new school can receive information about your federal aid eligibility.

Upon transferring, it's crucial to understand that your financial aid package at your new school may not be similar to what you have at your current school. You might receive more or less aid, depending on your new school's cost of attendance, their financial aid policies, and your financial aid eligibility.

Ensure to double-check your financial aid offer at the new school and contact their financial aid office if you have any questions concerning their aid package or how your loans will be affected.

Finally, don't forget to make sure any financial aid refunds from your current school are handled appropriately. The current school should send any loan money directly back to the federal government on your behalf if you transfer mid-semester and have already received a refund for that term. Make sure they do this by staying in communication with your current school's financial aid office.

Remember, each student's situation is unique, and it's essential to contact your loan servicer and the financial aid offices at both your current school and the school you plan to attend for the most accurate and personalized information.