Financial aid/student loan experts...help?!

[snipsnsnailsx5]

My DH finished his first two years of school and is taking a break while I do my first two years and then he'll go back and finish, planning on getting his nursing certification.

 

In the mean time, because of student loans, he has to start paying them back if he's not taking any credits obviously.

 

We went through the whole exit counseling and all that, selected our payment plan - but it was SO confusing. We chose Income Contingent because we have a large family and low income for our family size right now until DH finishes with his current job and can get his nursing certification and start his new career (that is a whole 'nother long story, not getting into right now...haha).

 

Anyway - we started getting our Direct Loans billing statements now but they keep saying we have $0 for monthly payment and $0 due. I went to the website and logged into his account...it shows our repayment table and its all $0 due until 2036 (contingent on our current income and family size). Apparently we are paying interest only, but we're not being billed anything. Our interest balance as of 12/26 says it is $29.30. Will they bill us for interest when its due, or is it up to us to look at our statements and pay the interest shown even though it says our total payment due is $0?

I am just very confused!

 

Thanks! :)

[Hannah C.]

I would try and contact a representative/loan person to answer your questions, first of all! However, I know that in my case (I just graduated from college) there is a six month grace period before I have to start paying back my loans. Could this be the case for your dh as well? Maybe something to look into.

[Renee in NC]

My DH finished his first two years of school and is taking a break while I do my first two years and then he'll go back and finish, planning on getting his nursing certification.

 

In the mean time, because of student loans, he has to start paying them back if he's not taking any credits obviously.

 

We went through the whole exit counseling and all that, selected our payment plan - but it was SO confusing. We chose Income Contingent because we have a large family and low income for our family size right now until DH finishes with his current job and can get his nursing certification and start his new career (that is a whole 'nother long story, not getting into right now...haha).

 

Anyway - we started getting our Direct Loans billing statements now but they keep saying we have $0 for monthly payment and $0 due. I went to the website and logged into his account...it shows our repayment table and its all $0 due until 2036 (contingent on our current income and family size). Apparently we are paying interest only, but we're not being billed anything. Our interest balance as of 12/26 says it is $29.30. Will they bill us for interest when its due, or is it up to us to look at our statements and pay the interest shown even though it says our total payment due is $0?

I am just very confused!

 

Thanks! :)

 

Usually they bill the interest quarterly, but you are only required to pay the interest that is unsubsidized (and you don't *have* to pay it now - you can elect to have it capitalized if you need to.) I don't receive paper bills at all, though, so I would have to go online and look it up myself.

[Cindy in the NH Woods]

The only advice I have, is to pay what you can, as soon as you can. Despite the "grace" period, we were charged interest during that time. (We have an unsubsidized Stafford loan.) And it was a pretty penny. Also, if I read the fine print properly, the loan holder has the right to raise interest rates. :confused: I can't wait to have this baby paid for.

 

Blessings to your dh as he begins his nursing career!