Can I go back to college even if I owe student loans?

Yes, you can go back to college with existing student loans, but your eligibility for new federal aid depends on your current loan status, especially if you're in default; if in good standing, you might get deferments, but if in default, you must resolve it (e.g., via Fresh Start, consolidation, income-driven plans) to access new aid, though your school might withhold transcripts if you owe them money directly, which a Connecticut law addresses for job/military, but not for other schools.

Can you go back to school if your student loans are forgiven?

But with regard to the question itself, if you actually did have loans forgiven… no, going back to school would not make those loans reappear.

What disqualifies you from getting FAFSA?

You can be disqualified from FAFSA for failing basic requirements (like not having a diploma, being a non-citizen, or male not registered for Selective Service), not maintaining satisfactory academic progress (SAP), defaulting on old loans, owing a grant refund, committing aid fraud, or if a required contributor doesn't consent to share tax info; you also can't get aid if incarcerated, but can regain eligibility by resolving issues like loan defaults or getting off probation.
 

Do student loans stop if you go back to school?

Yes, if you go back to school at least half-time, your federal student loans will likely pause (defer) automatically, but you need to be enrolled at an eligible school, and you might need to request it for private loans; interest accrues on unsubsidized loans during deferment, while subsidized loans have interest covered by the government, and you must inform your loan servicer. 

What happens after 7 years of not paying student loans?

After 7 years, defaulted student loans might disappear from your credit report, but the debt doesn't vanish; the negative record is removed, yet the lender can still pursue collection or sue for payment, especially for federal loans, which have no statute of limitations and can be collected indefinitely, unlike many private loans with state-specific limits. The 7-year mark applies to negative marks like delinquencies, not the loan itself, and while private loans might become time-barred in some states, federal loans can lead to wage garnishment or tax refund seizure. 

What Everyone's Getting Wrong About Student Loans

Is $40,000 in student debt bad?

$40k in student debt isn't inherently "bad," but it's significant and manageable depending on your post-graduation salary and financial goals; ideally, your total student loan debt shouldn't exceed your first-year earnings, and payments should be under 20% of your income, so a $40k loan is great if you earn $60k+ but challenging if you only earn $30k, requiring focus on income, repayment plans, and avoiding default. 

How to legally get out of student loans?

You can legally get rid of student loans through forgiveness programs (like PSLF for public servants or Teacher Loan Forgiveness), Income-Driven Repayment (IDR) plans that forgive balances after 20-25 years, or specific discharges for disability, school closure, or fraud (Borrower Defense). Federal loans have more options, but private loans might be discharged in bankruptcy or settled, though this is harder. 

How much is the monthly payment on a $50000 student loan?

A $50,000 student loan monthly payment varies significantly, ranging from roughly $50-$70 on longer (20-year) terms at lower interest rates to over $400-$500 on shorter (1-10 year) terms at higher rates, with a typical 10-year plan at 5% interest around $530 monthly, but income-driven plans can make payments much lower, even under $100, depending on your income.
 

Can I still go to school if I owe student loans?

Yes. Defaulting on your student loans (federal or private) doesn't stop you from enrolling or being admitted to school. But it creates hurdles for financial aid. If your federal loans are in default, you'll lose access to federal student aid until you fix the default.

What is the 7 year rule for student loans?

The "7-year rule" for student loans usually refers to when negative information, like a default, * falls off your credit report*, not when the debt disappears, though it also relates to Canadian bankruptcy rules where loans < 7 years old aren't discharged. For US federal loans, negative marks typically drop after 7 years from the first missed payment, but the debt remains; for private loans, it's often 7.5 years. The debt itself doesn't vanish and must be paid, but in bankruptcy, the 7-year mark (from last student status) used to be a guideline, though now it's harder to discharge federal loans except through proving "undue hardship".
 

How much is a $30,000 student loan per month?

A $30,000 student loan payment varies significantly but typically falls between $300 and $400 monthly for a 10-year term, depending on the interest rate (e.g., $318 at 5% or $348 at 7%). Longer terms (20-25 years) lower payments but increase total interest, while shorter, aggressive repayment (5-7 years) raises monthly costs for faster payoff. Key factors are your interest rate and repayment plan length, with options like standard 10-year, extended, or income-driven plans available.
 

What is the #1 most common FAFSA mistake?

The #1 most common FAFSA mistake is leaving fields blank, often due to confusion, which can delay or reject applications; instead, enter '0' or 'N/A'. Other major errors include incorrect personal info (Name/SSN mismatch), mixing up student/parent answers, misreporting income/asset data (using wrong tax year), and missing early deadlines for limited funds.
 

What income is too high for FAFSA?

There is no income cap for FAFSA. Even high-income students should apply to access federal loans and some merit aid. Aid eligibility is based on your Student Aid Index (SAI) and cost of attendance, not just income alone. For the 2025-26 FAFSA, dependent students can earn up to $11,510 before it affects aid eligibility.

Can I still apply for FAFSA if I owe student loans?

No, you generally cannot get new FAFSA aid if you are in default on federal student loans or owe money back on a federal grant, as it makes you ineligible; you must first resolve the default by making payments, consolidating, or using the Fresh Start program to regain access to federal aid and apply for the FAFSA again. Defaulting can also lead to wage garnishment and hurt your credit. 

At what point do you stop paying a student loan?

If you stop working, or start to earn below the repayment threshold, your repayments will stop until you earn over the threshold. You'll make a repayment if you go over the weekly or monthly threshold at any point during the year, for example, if you get a bonus or work overtime.

What is the $5500 student loan?

A "$5,500 student loan" most commonly refers to the maximum annual Direct Unsubsidized Loan limit for first-year undergraduate students or the maximum subsidized amount for junior/senior years in a Federal Direct Loan package, with amounts increasing in later years, but it's part of a larger borrowing structure defined by your school's financial aid offer after filling out the FAFSA. It's a low-interest federal loan, with subsidized versions paid by the government while you're in school (if you have need) and unsubsidized versions accruing interest immediately. 

Is $40,000 in student debt bad?

$40k in student debt isn't inherently "bad," but it's significant and manageable depending on your post-graduation salary and financial goals; ideally, your total student loan debt shouldn't exceed your first-year earnings, and payments should be under 20% of your income, so a $40k loan is great if you earn $60k+ but challenging if you only earn $30k, requiring focus on income, repayment plans, and avoiding default. 

Can I get my degree if I owe money?

Withholding Transcripts, Degrees, or Diplomas

A number of states ban schools from withholding transcripts, degrees, and diplomas if a debt is owed to the school.

What is the Fresh Start Program 2025?

What is the IRS Fresh Start Program 2025? The IRS Fresh Start Program 2025 is a federal tax relief initiative designed to help individuals and small businesses resolve back taxes. It offers structured options like installment agreements, penalty relief, and Offers in Compromise.

What if I never earn enough to repay my student loan?

Short Answer. If you never earn enough to reach the repayment threshold, you make zero repayments and your loan is completely written off after thirty years (Plan 2) or forty years (Plan 5) tax-free with no financial penalty. This is fundamentally different from defaulting on commercial debt.

What credit score do you need to get a $100,000 loan?

To get a $100k loan, you generally need a good to excellent credit score (670-720+), but a score of 750 or higher is ideal for the best rates and terms, along with strong income and low debt. Lenders see larger loans as riskier, so higher scores (like very good: 740-799, or excellent: 800+) signal lower risk, improving approval odds and securing lower interest rates. 

What are valid reasons for deferment?

Good reasons to defer (postpone) college include taking a gap year for work, travel, volunteering, or personal growth to build maturity and clarity; addressing financial needs by saving money; gaining relevant experience through internships or jobs; or dealing with personal health/family issues, all leading to better college readiness and focus. It's a chance to gain life experience that enhances personal development and academic motivation before committing to a degree. 

Do student loans ever get written off?

Loan Forgiveness Timeline: Federal student loans can be forgiven after 10 years through Public Service Loan Forgiveness (PSLF) or after 20-25 years under Income-Driven Repayment (IDR) plans.

How does Fresh Start work?

The IRS Fresh Start Program isn't one single solution but a set of updated policies making it easier for struggling taxpayers to resolve debt with options like longer installment plans (up to 72 months for debts under $50k), higher thresholds for tax liens, and easier qualification for Offers in Compromise, aiming to reduce aggressive collection actions and offer relief through tailored payment plans or penalty abatement based on financial hardship.