What Every Student Loan Borrower Needs To Know About the Grace Period


You know that when you take out a federal student loan, your going to have to repay the loan at some point. But, did you know that you don’t have to start paying your loans right away? There is a waiting period after graduation and before payment begins. It’s known as the grace period. Repayment will start after your grace period is over. But there can be a different grace period for different loans.

Stafford Loans Grace Period

You have six months to begin repayment of a Stafford loan after graduation or after you leave school or drop below half-time enrollment. The interest doesn’t accrue while your in school. The government pays the interest on a subsidized loan, but on an unsubsidized loan, you have to pay either the interest during the grace period or the interest will be capitalized when the repayment begins.

Perkins Loans Grace Period

The grace period for a Perkins loan is nine months.

Plus Loans Grace Period

There is no grace period for a Plus loan. The repayment of a Plus loan begins 60 days after the final loan disbursement for the period of enrollment. You can get the deferment but it’s wiser to apply for an income based repayment plan then deferment.

How Can I Wisely Handle The Great Grace Period?

Simply because you don’t have to pay the loans back during the grace period doesn’t mean that you shouldn’t or even consider getting yourself into an income based repayment plan. While you have just graduated or are still looking for work, you may think that paying your student loans is impossible. It’s not! With an income based program, the amount of your payment will be based on your income and certainly while your looking for a job you have little or no income. That’s the right time to apply for an income based repayment plan, because your plan can be as little as $5.00 a month. Yes, $5.00 a month and that payment will count towards the payment of your student loans.

What Should I Do To Learn More About My Grace Period?

It’s time to contact student loan attorney, Nancy L. Cavey who can help you determine what student loan repayment plans are best for you and help you chart a road map for your financial future. Don’t jeopardize your financial future, call today at (727) 828-9955 for a complimentary consultation.

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