Student loans often have grace periods, amounts of time during which you are not required to make payments. Usually, this means that you are excused from repaying your loan while in school and for several months after graduation. The grace period may also commence if you drop below half-time enrollment or leave school without graduating.
Grace Period Length
Terms for private and federal student loans can range from immediate payment to grace periods of a year or more. Common grace periods are 6 to 9 months. If you're not sure, check your loan's promissory note for specifics.
Federal Student Loans
With the exception of PLUS Loans, all federal student loans have a grace period. The period is six months for the Stafford Loan and nine months for the Perkins Loan.
Interest
On subsidized loans, the government (or a private party) pays for interest accrued while you are in school and during the grace period. Students with unsubsidized loans, however, are responsible for repaying this interest.
Deferment
Student loans can be deferred beyond the original grace period if the borrower experiences economic hardship, returns to school or is on active military duty.
Consolidation
If you have more than one student loan, look into consolidating them during your grace period to qualify for a reduced interest rates and lower monthly payments.
Defaults
Start payment when the grace period ends. Defaulting on a student loan can lower your credit rating and make it difficult to obtain future financial aid.
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