Fed subsidized student loan question

[auron]

Hi everyone,

I have a question regarding the rules for federal subsidized student loans. I took out loans to work on an MBA, but took an engineering job (undergrad) and started repayment. My question stems from the fact I still wish to complete my MBA, but have my company pay for it.

If I were to re-enroll in the MBA program, can I put my subsidized loan back into deferrment while I finish the coursework to save interest accrual?

[pdweaver]

I believe so if the Graduate School is on a list as an accepted school. Here is a chart showing allowable situations for Loan Deferment.

http://studentaid.ed.gov/students/at...tionsChart.pdf

[bjl584]

Originally Posted by auron

Hi everyone,

I have a question regarding the rules for federal subsidized student loans. I took out loans to work on an MBA, but took an engineering job (undergrad) and started repayment. My question stems from the fact I still wish to complete my MBA, but have my company pay for it.

If I were to re-enroll in the MBA program, can I put my subsidized loan back into deferrment while I finish the coursework to save interest accrual?

Your loans will go back into deferrment if you enroll into an approved university (most brick and mortar schools qualify), and you are enrolled in classes fulltime. Fulltime is defined by the university. X number of credits per year/semester.

[Money Gal]

Originally Posted by auron

Hi everyone,

I have a question regarding the rules for federal subsidized student loans. I took out loans to work on an MBA, but took an engineering job (undergrad) and started repayment. My question stems from the fact I still wish to complete my MBA, but have my company pay for it.

If I were to re-enroll in the MBA program, can I put my subsidized loan back into deferrment while I finish the coursework to save interest accrual?

You need to be enrolled in school at least 1/2 time to qualify for deferral. 1/2 time is usually defined on your school's website, so you need to look that up.

How much will your company pay towards the MBA? Most companies pay up to a fixed $ amount & that might not be enough to cover 1/2 time attendance. Also questionable to me whether you can maintain a full time job + 1/2 time MBA attendance without compromising one or the other.

[auron]

Originally Posted by Money Gal

You need to be enrolled in school at least 1/2 time to qualify for deferral. 1/2 time is usually defined on your school's website, so you need to look that up.

How much will your company pay towards the MBA? Most companies pay up to a fixed $ amount & that might not be enough to cover 1/2 time attendance. Also questionable to me whether you can maintain a full time job + 1/2 time MBA attendance without compromising one or the other.

My company will pay for the rest of the degree minus tax implications. Judging from my first year in courses for my MBA, I can definately maintain my job and 1/2 time MBA. It gets foggier when I ask if it's worth it to go 1/2 time just to save interest on a $8.5k loan....hmm and when I think of it this way it doesn't sound too good to me.

Thanks again Money Gal for asking the right questions to make me think =).