How to Understand Student Loan Repayment Grace Periods
Some students who take out student loans don't fully understand the idea of a grace period. Grace periods are an allotted amount of time in which payments (of the principal and interest) are postponed, also known as deferred.
- Difficulty:
- Moderately Easy
Instructions
-
-
1
Contact your lender. Talk to them about the grace periods for each of your loans. Nearly every student loan starts out with either a three month or six month grace period following graduation.
-
2
Know the grace periods for each type of loan you have. The following is a list of the most common loans and their grace periods: Federal Perkins Loan - 9 month grace period. Direct Stafford Loan - 6 month grace period. Federal Family Education Loans (FFEL) - 6 month grace period. Nursing Loan - 9 month grace period. Health Professions Loan - 12 month grace period
-
3
Consider consolidation. This may help simplify your payments by placing all loans into one big loan with one interest rate.
-
4
Request forbearance or deferment. These both have terms in which loan repayment can be postponed, including financial hardship, accidents or disability. Talk to your lender about each of these.
-
5
Begin payment when grace period has ended.
-
1
Tips & Warnings
Be sure to talk to your lender and find out when you need to make your first loan payment.
Some students begin to repay their loans during the grace period, which can help in the long run by reducing future payments.
Budget accordingly during the grace periods for each individual loan so you do not default on any of them.
Make your payments on time or the interest will accrue and you will end up paying more in the end.
Failure to make timely payments will negatively affect your credit rating.
