Loan Repayment & Leaving School
Graduating or Leaving SWC
Whether you are graduating, transferring, or taking time away from school, it is important to understand what happens to your loans when you leave SWC.
When you graduate, transfer, or drop below 6 units for any reason, your six-month grace period begins. During this time, you are not required to make payments on your Direct Subsidized or Unsubsidized Loans. For subsidized loans, interest does not accrue during the grace period. For unsubsidized loans, interest continues to build during the grace period. You can choose to pay this interest or let it be added to your balance.
Once your grace period ends, your first loan payment is due. Your loan servicer will contact you before your grace period ends with information about your repayment schedule and options.
Before you leave SWC, make sure you have completed your Direct Loan Exit Counseling. This is a federal requirement and a hold will be placed on your records until it is done. Visit the Entrance & Exit Counseling page for more detailed information on the Exit Counseling requirement.
Repaying Your Loans
When you graduate, leave school, or drop below half-time enrollment, your loan repayment period begins. Understanding your options ahead of time can make the process much less stressful.
Your Direct Loans are funded by the U.S. Department of Education and managed by a loan servicer. Your servicer acts as your lender from the time your loan is disbursed until it is fully repaid. They will contact you with repayment information when you leave school or graduate.
Repayment Plans
The Direct Loan Program offers several repayment plans designed to fit different financial situations. You can choose the plan that works best for you, and you can switch plans if your needs change over time.
One important thing to keep in mind: some repayment plans lower your monthly payment but increase the total amount you repay over time because interest continues to build. In general, paying as much as you can each month will reduce your overall cost and help you pay off your loan faster.
Need Help?
If you have questions about repayment options before leaving school, contact the Financial Aid Office at (619) 482-6357 or the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).
If you already have a Direct Loan and want to know your exact payment amount, contact your loan servicer directly. You can find your servicer's contact information by logging in to your StudentAid.gov account.