Students have a 6 month grace period from when they graduated, drop below part time enrollment or leave school until payments on student loans need to be made. If you’re worried about how much it will cost or when exactly your payment is due, don’t worry because your service loan provider will send you information that describes when your payment is due, the amount that is due and the repayment plan you’ve been enrolled in. Remember that you can change your repayment plan at any time. It’s also important to know that even though you have a grace period, interest will still accrue during this time.
What is the grace period for my loans?
If you have any kind of PLUS loans, then you have no grace period. As soon as the loans are disbursed then repayment can begin. However, if you’re unable to start repaying your loans, you may be eligible for deferment. Deferment postpones when your repayment is due. If you have Subsidized or Unsubsidized Federal Stafford loans, Direct Subsidized loans or Direct Unsubsidized loans then you have the regular 6 month grace period. If you have Federal Perkins loans, the grace period varies so check with your school to verify.
Your grace period can change if you consolidate your loans during the initial grace period, in which your first payment will be due two months after loan consolidation is disbursed. Also, if you happen to return to school or enroll at least part-time during your initial grace period then your grace period will start once you stop attending school, graduate or fall below part-time enrollment.
What happens if I miss a payment?
You should pay your student loan bills monthly and on time or you could obtain late fees and missing payment could even affect your credit score. However, if you are unable to find employment or can’t find a full-time position then you could be eligible for deferment. Deferment usually is granted for up to 3 years and if you have subsidized loans then no extra interest will be applied.
Not eligible for deferment? You also have the option of forbearance. You will instantly be enrolled in forbearance for 12 months if your monthly payments are 20% or more of your total monthly gross income.
However, we strongly suggest entering into an income-driven repayment plan. Visit http://pslf.us/2017/05/22/income-driven-repayment-plans/?preview_id=1461&preview_nonce=39b1c5e735&post_format=standard&_thumbnail_id=913&preview=true to find out more about these types of repayment options.
Could I refinance my loans?
Refinancing your loans can save you money, but is based on whether you have a good credit score and a steady income. Refinancing is more suitable if you have private loans with a high interest. When considering to refinance your federal loans, you should make sure you can get a lower interest rate. Refinancing on federal loans will eliminate additional repayment and forgiveness options.