Repay Student Loans » grace period, http://www.repay-student-loans.com Student Loan Consolidation & Student Loan Repayment Mon, 07 Nov 2011 22:00:03 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 What is Student Loan Repayment Grace Period? http://www.repay-student-loans.com/2009/04/what-is-student-loan-repayment-grace-period/ http://www.repay-student-loans.com/2009/04/what-is-student-loan-repayment-grace-period/#comments Wed, 22 Apr 2009 18:28:48 +0000 admin http://www.repay-student-loans.com/?p=57 After borrowers graduate, leave school, or drop below half-time enrollment, loans that were made for that period of study have several months before payments are due. This period is called the “grace period.”

Grace periods extend from 6 to 12 months after borrowers leave school:

Most FFEL and Direct Loans have 6- month grace periods.

Perkins Loans have grace periods of either 6 or 9 months, depending on when the loan was first disbursed.

Health professions loans have grace periods of 9-12 months.

During the grace period, no interest accrues on SubsidizedUnsubsidized loans during grace periods, and this interest is capitalized when borrowers’ loans enter repayment.

Borrower’s repayment periods begins the day after the grace period ends. First payments will be due within 60 days after the repayment period begins.

Each loan has only one grace period. If borrowers return to school after the grace periods has expired, the borrowers’ loans qualify for deferment while borrowers are enrolled but return to repayment after borrowers leave school. There is no additional grace period.

Source: U.S. Department of Education

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