After you graduate, leave school, or drop below
half-time enrollment at a participating school,
generally you have a “grace period” before you
have to begin repayment.
For Federal Perkins Loans, the grace period is nine
months.
For FFEL Stafford Loans and Direct Stafford
Loans, the grace period is six months.
If your parents borrow a FFEL PLUS Loan or a
Direct PLUS Loan for you, there is no grace
period. The first payment on these loans is
generally due within 60 days after the final loan
disbursement for the period of enrollment for
which your parents borrowed.
During the grace period on a subsidized Stafford
Loan, you don’t have to pay any principal, and no
interest will be charged (the federal government
pays the interest). During the grace period on an
unsubsidized loan, you don’t have to pay any
principal, but interest will be charged. You can
either pay the interest or it will be capitalized
(added to your principal balance).
If you should return to school at least half time
before the grace period ends, you again may
postpone loan repayment while you’re in school,
and you’ll be entitled to a full grace period when
you terminate enrollment or drop below half-time
enrollment status. You must understand,
however, that once the grace period ends, you
are in repayment status and must request a
deferment if you want to postpone repayment.
For more
on deferment, see deferment page.
Effective October 1, 1998, the six-month grace
period for a Stafford Loan excludes a period of up
to three years if you’re called, or ordered, to
active duty in a reserve component of the U.S.
Armed Forces. The active duty must be for a
period of more than 30 days and would include
any period of time necessary for you to resume
enrollment in school at the next available regular
enrollment period.
When you graduated, left school, or dropped
below half-time enrollment status, the financial aid
administrator at your school provided counseling
to inform you of your rights and responsibilities as
a borrower. The aid administrator also provided
information about the types of loans you received,
the address where you must send your payments
and the way to contact your lender, your
repayment amount, repayment options and
other debt management strategies, the date
repayment was to begin, and the consequences of
default.
At the same time the financial aid administrator
provided this information, your loan holder (the
financial institution you received the loan from)
should have sent you information about
repayment, including payment due dates. If your
grace period is almost over and you haven’t
received this information, contact your lender as
soon as possible.
Remember, though, you’re responsible for
beginning repayment on time, even if you don’t
receive this information
