When Do You Start Paying Your Student Loans?

You have to start paying your student loans six months after you graduate, unless you have a grace period. If you’re not sure when your grace period ends, contact your loan servicer.

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Introduction

Most students don’t start paying their student loans until after they graduate.
The average graduate has $28,400 in student loan debt, according to EdAssist. But when do you actually have to start making payments on those loans?

The answer depends on the type of loan you have and when you borrowed it.

Stafford Loans, which are the most common type of federal student loan, typically have a six-month grace period. That means you don’t have to start making payments until six months after you graduate, leave school or drop below half-time enrollment.

For Perkins Loans, the grace period is nine months.

For Direct PLUS Loans for graduate or professional students and parent borrowers, there is no grace period — you must begin repaying your loan as soon as the funds are disbursed (paid out) to your school.

Some private lenders also offer grace periods, but they’re not required to do so. If your private lender does give you a grace period, it will likely be shorter than the grace periods for federal loans — usually just 15 days after you graduated, left school or dropped below half-time enrollment.

What Are Student Loans?

Student loans are a type of loan specifically meant to help cover the cost of attending college. They can come from the federal government, from private lenders, or from state or school programs. You don’t have to start repaying most student loans until after you graduate, leave school, or drop below half-time enrollment.

The Different Types of Student Loans

There are two types of student loans: federal and private.

Federal student loans are Graduate PLUS Loans, Stafford Loans, and Perkins Loans. They are all need-based, which means the government will really only approve you for as much money as it thinks you need. The interest rates on these type of loans are lower than the interest rates on private loans, and the repayment terms are more flexible.

Private student loans are offered by banks and other financial institutions, not the government. They can be used to cover the entire cost of attendance or just a portion of it. The interest rates offered by private lenders will depend on your credit score, and the repayment terms will be less flexible than federal loans.

How Much Do You Owe?

Your loan servicer will contact you after you graduate, leave school, or drop below half-time enrollment to discuss your repayment options and to collect information about your current mailing address, email address, and employer. If you don’t already have a loan servicer, one will be assigned to you.

If you have FFEL or Direct Loans, the entire unpaid balance of your loan and all accumulated interest is due and payable upon your death. However, if you have Perkins Loans, the unpaid balance of your loan may be canceled by your school or the government.

When Do You Start Paying Your Student Loans?

Federal student loan repayment plans are based on your income and how much you can afford to pay each month. You’ll generally have from 10 to 25 years to repay your loans, depending on the repayment plan you choose.

Most federal student loan borrowers don’t have to make payments while they’re in school; however, if you have a Direct Unsubsidized Loan or a Federal Perkins Loan, you will be responsible for paying the interest that accrues (adds up) while you’re in school.

If you choose not to pay the interest while you’re in school, it will be capitalized (added to your principal balance), and your monthly payments will be higher and it will take you longer to repay your loan.

How to Make Student Loan Payments

Your student loan payments will begin six to nine months after you graduate, leave school, or drop below half-time enrollment. This grace period gives you time to get financially settled and find a job. During this time, you’re not required to make any student loan payments, but you may choose to do so.

If you don’t make any payments during your grace period, your loans will enter repayment. The type of loan you have will determine when repayment begins and how long you have to repay your loans.

Direct Subsidized Loans and Direct Unsubsidized Loans have a six-month grace period before repayment begins.

Direct PLUS Loans for graduate or professional students have a nine-month grace period before repayment begins.

Direct Consolidation Loans have a grace period of six months after the date the first payment is due on the consolidated loan.

If you’re not sure when your first payment is due, contact your loan servicer. Your loan servicer is the company that manages your loan on behalf of the U.S. Department of Education.

What Happens If You Can’t Make Your Student Loan Payment?

contact your loan servicer right away.

It’s important to remember that you’re not alone if you can’t make a student loan payment. Many borrowers have difficulty making payments at some point during the life of their loan. The most important thing you can do if you’re having trouble making a payment is to contact your loan servicer right away. They may be able to help you find a solution that will work for both of you.

There are several options available if you can’t make your student loan payment, but the specifics will depend on the type of loan you have and your lender’s policies. Some common options include deferment, forbearance, and restructuring your loan.

If you have a federal student loan, you may be able to postpone your payments through a process called deferment or forbearance. With deferment, your payments are temporarily suspended for a period of time. Forbearance allows you to temporarily make smaller monthly payments or pay nothing at all for a short period of time. Interest will continue to accrue on your loans during deferment or forbearance, so it’s important to consider other options if these methods are available to you.

If you have a private student loan, your lender may be willing to work with you to create a new repayment plan that better suits your current financial situation. This could involve extending the length of your loan so that you have lower monthly payments, or changing the due date of your payments so that they better fit with when you get paid. It’s important to remember that restructuring your loan could result in paying more interest over the life of the loan, so be sure to consider all of your options before making a decision.

If You’re Struggling To Make Your Student Loan Payments, Contact Your Loan Servicer Right Away To Discuss Your Options

Conclusion

In conclusion, you should start paying your student loans as soon as possible. The sooner you start, the less interest you will accrue and the less you will ultimately have to pay back. If you can’t afford to make payments while you’re in school, consider consolidating your loans or enrolling in an income-based repayment plan. And remember, if you’re having trouble making payments, don’t hesitate to reach out to your loan servicer for help.