Do You Know Your Grace Period?
When the time comes to pay back your student loans, there’s a lot to consider – like your grace period. And the grace period differs, as it’s based on the various loans you may have. So, where to start?
First, you need to know what a grace period is, and quite simply, it’s the waiting time from when you graduate to when you need to start paying back your loans. Ideally, this is the time you will prepare yourself financially, so that you can save money and put together a repayment plan that works with your budget.
Next, how long is your grace period? That all depends on the type of loan you have. For example:
Federal Perkins Loan – Your grace period is 9 months after you graduate if you attended school at least half time. If you attended less, then check with your college to find out your grace period.
Stafford Loan – Your grace period is 6 months after graduation.
PLUS Loan – This type of loan does not have a grace period. Repayment usually starts within 60 days after the final loan disbursement during the enrollment period when the loan was borrowed.
Private Loans – The grace period will differ based on your lender, so you need to read through your loan documents and/or contact your lender. It’s important to remember that generally, interest will start accruing during your grace period.
So, know your grace period. Only then can you make a plan to start paying back your student loans and other debts to put you on the right path toward financial freedom.
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