Do I Have To Payback My Student Loans If I Drop Out

Q: If I dropout of college before I graduate from my degree program, will I have to pay back the federal student loans I used for that program?

A: Yes, just because you do not graduate from college does not mean that your federal student loans will be forgiven, or that they do not need to be repaid. Sometimes this is a misconception borrowers of student loans have, but the fact is, student loans are practically just the same as any other type of loan product. For example, if an individual purchases a car on loan, they are responsible to pay back that auto loan, regardless of what happens to the car. The same holds true for both private and federal student loans.

With federal student loans, students will typically have a six month grace period from the time they graduate or quit school before they enter into the repayment period. However, grace period durations can vary for both federal student loans and private student loans, so it is important to check with your lender to verify when you will be responsible to start making payments on your student loans.