Loan Repayment Grace Period

Grace Period

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 Subsidized loans. Interest accrues on Unsubsidized loans during grace periods, and this interest is capitalized when borrowers' loans enter repayment.

Borrowers' repayment periods begin the day after their loans' grace periods end. First payments will be due within 60 days after the repayment periods begin.

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.

The information on this site was produced by the US Dept. of Education and has been compiled by the site owners. We are not responsible for accuracy or completeness. Site design (c)2007

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