Student Loans Articles

Preparing for Repayment: Understanding Your Grace Period

Grace Period

When you first took out federal student loans you may have heard the team “grace period”. Do you remember what it means? The grace period is the six month period before loan repayment begins. This is a good time to determine if you are returning to school, and then to work with your servicer to understand what your monthly payment will be and when repayment starts. In this article, I’ve broken it down so you’ll have a clear understanding of how this valuable period of time works.

What is a Grace Period?

Grace period is an amount of time (typically 6 months) in which you do not have to make payments on your student loans after initially leaving school or dropping below half-time status.

Now comes the part where some students may get slightly confused. Some students think their grace period is always there ready to use, or it just starts all over again once they go back to school.

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