You usually do not have to start repaying your loans right away. This “waiting period” after graduation and before repayment begins is known as a “grace period.”

Grace periods can be extended for up to three years (in addition to the standard six months) if a borrower is serving on active duty in the Armed Forces. Repayment begins after the grace period is over. See the special programs for military section of this site for information about other options for military service members and certain civilians affected by war or national emergencies.

Stafford Loans

You have six months to begin repayment on Stafford loans after graduation, or after you leave school or drop below half-time enrollment. Older Stafford Loans may have a longer grace period. You can also request a shorter grace period if you want to start repaying sooner, and avoid unnecessary interest capitalization. “Capitalization” is when interest accrued during the grace period or other deferment is added to the loan principal when repayment begins.

Interest will not accrue while you are in school, and during the grace period for subsidized Stafford loans. The government pays the interest on these loans. This is not the case for unsubsidized loans. If you have unsubsidized loans, you may either pay the interest during the in-school deferment and grace periods, or the interest will be capitalized when repayment begins.

PLUS Loans

There is no grace period for PLUS loans. Repayment on PLUS Loans generally must begin within sixty days after the final loan disbursement for the period of enrollment for which the loan was borrowed.

For loans disbursed on or after July 1, 2008, repayment will still begin 60 days after disbursement. However, borrowers may postpone repayment during any period in which the parent borrower or the graduate or professional student PLUS borrower qualifies for a deferment. A parent borrower may also defer repayment for six months after the student on whose behalf the loan was borrowed is no longer in school or if the parent is also a student, six months after the day that the parent is no longer in school. Graduate and professional student PLUS borrowers may also defer repayment during the six months after they leave school.

If agreed upon by the borrower and the lender, interest that accrues during the deferment periods will be paid monthly or quarterly, or added to the principal amount of the loan not more frequently than quarterly.

Perkins Loans

The grace period for Perkins loans is nine months. Perkins loan borrowers attending less than half-time should check with their financial aid administrators to determine their grace periods. Perkins borrowers should not be charged interest during the grace period.

Private Loans

Private loans may also have grace periods. These are sometimes called “interim periods”. You should read your loan agreement carefully and ask your lender about when repayment begins. Interest will generally accrue while you are in the grace period. Once you enter repayment, the accrued interest will usually be capitalized, meaning that it will be added to your principal balance. You can also choose to pay the interest during the grace period and avoid capitalization.