H E N N Y

Understand deferred student loan repayment rules: Even if you merely transfer to a new college, you don't always need to start repaying your loans right away. Federal Stafford loans, among others, for the period of time you are registered as a full-time or part-time student. You can't simply take one class and defer your loans. Your best plan of action to defer student loans by returning to school is:

Review your loan documents, your financial aid package you received when first enrolled in college, copies of Federal Stafford loans and all the private loans you signed for and owe money on. A deferment on existing student loans remains one of the best ways you can put your student loan payments on hold. Some students benefit by applying for a private student loan. By cosigning your name a loan, you're guaranteeing that you will repay the loan should the borrower fail to make payments. Having a cosigner when applying for private student loans such as a Sallie Mae Signature Loan or a Tuition Answer Loan may increase your odds of being approved.

Here are some things to consider before cosigning for a private student loan. Federal Loans are not dischargeable through bankruptcy. Only 10% of the borrower's take home pay can be garnished to pay a student loan.

1. A loan will be fully discharged if the borrower dies.

2. In the case of a PLUS loan, the loan is fully discharged in the event of the death of the borrower (whether it is the student or parent).

3. On the death of a student on whose behalf a parent has taken a PLUS loan, that loan taken by the parent will be fully discharged.

Since the Bankruptcy Reform Act enacted in October 1994, a student need not re-affirm a previous FFELP loan discharged through bankruptcy in order to be eligible to receive a new loan. Financial Aid Administrators cannot deny any fresh loan under Title IV Grant Aid including the Perkins Loan Program to any prospective student borrower on the grounds of a previous bankruptcy filed by him (the student) on the bankruptcy determination.