A student loan grace period is a period after certain qualifying circumstances, such as leaving school or dropping below the required enrollment level, when you may not yet be required to make regular loan payments. The exact rules and length can depend on the specific loan.
The grace period gives borrowers time to prepare for repayment, but it doesn’t necessarily mean that no interest is accumulating. For some loans, interest can continue to accrue during this period. Understanding what happens to that interest is important because unpaid interest can increase the eventual cost of the loan.
Use the grace period as an opportunity to review your balance, understand your repayment schedule, update your contact information, and prepare a realistic budget for future payments.
Don’t wait until your first payment is due to learn how your loan works. Review your specific loan terms and repayment information so you know when payments begin and how much you may owe. You can also explore different student loan repayment plans before repayment starts.
