How do student loans work?

You get your loan award each year but it is dispersed once each semester to the school. You don't have access to any money unless you borrow more than your school's tuition is and then you get issued a refund (which you also have to pay back). Student loans typically have a 6 month grace period after you graduate when you don't have to repay loans. If you stop going to school (take a break) you need to begin paying the loans back immediately. As soon as you go back the loans can be deferred again.