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STUDENT LOAN GRACE PERIOD
The student loan grace period is one of the most misunderstood facets of student
loans.
Perkins loans carry a student loan grace period of up to nine months. Stafford and
Direct (William G. Ford) loans carry a student loan grace period of up to six months.
Note the key words here, ‘up to’.
If you take a semester off from school, your loans immediately go into the student loan grace period. When you return to school three months later, you have used your
student loan grace period. You don’t get to save up the remaining three to six months
to use it later. Student loan grace period is a one time deal. You have a student loan grace period with each disbursement, so the loans you took in September may go
into repayment in June if you didn’t attend school in January. But if you went back to school in June, those loans can be placed into in-school deferment (assuming you
meet the qualifications). If you drop out again in September, your June loans go into repayment in March. But your September loans from last year go back into repayment
in September when you do not return to school. As you can see, it gets complicated.
Another way to get confused about your student loan grace period is to change
schools, or to fail to sign up for the fall semester before leaving school for the summer. Most schools will arrange a ‘bridge’ for students who attend classes through June, and have already enrolled for September. The bridge carries them through the summer
without consequences. But if you don’t sign up, they don’t do that. Or if you are transferring from school A in June to school B in September, neither school will take responsibility for arranging that bridge, so your loans go into repayment. For more information about student loan grace periods, read “Surviving Your Student Loans”.
There is no loan repayment grace period. The payment is due when the payment is due.
Student Loan Grace Period:
Student Loan Topics:
Master Promissory Note, Student Loan Deferment, Student Loan Forbearance, Student Loan Consolidation, Student Loan Discharge, Student Loan Grace Period, Subsidized
Student Loans, Unsubsidized Student Loans, Stafford Student
Loans, Perkins Student Loans, Direct Student Loans, PLUS
Student Loans, William G. Ford Student Loans, Student
Loan Delinquency, Student Loan Default, Student Loan Payment
Options, Student Loan Case Studies, Student Loan Management,Additional Reading Relating To Student Loans, How Do I Get A
Student Loan, How Do I Confirm the Status of my Student Loans, Why
Do I Owe Twice As Much As I Borrowed On My Student Loans, Pending
Changes Affecting Student Loans, Bankruptcy and Student Loans, Student Loans And Your Credit Report, Student Loans, Gifts.
