Different Student Loan Repayment Grace Periods

If you have taken a student loan from a bank, you will be provided a grace period for repayment. If you finish your course today, you need to start repaying loan after six months, that is, after getting employed somewhere. It is a normal grace period provided by banks in general. But there are different grace periods for different student loans. Read full article for more…

What is a Grace Period?

A ‘grace period’ is defined as an allotted amount of time during which you need not make payments on your student loans after initially leaving school or dropping below half-time status. The period is normally six months to one year. It differs among banks and student loans taken.

Two Common Grace Periods

Two most common types of student loans that offer a grace period are:

Federal Stafford Loan, and Federal Perkins Loan

  • Federal Stafford Loan Grace Period: Stafford loan has a six-month grace period, irrespective of subsidy received. After six-month your Student loan will not be eligible to receive a new grace period in future. If you break your initial grace period by going back to school, to maintain at least half-time status in a qualifying course of study and file the appropriate student deferment form, you will be allotted another six-month grace period for your student loan repayment.

  • Federal Perkins Loan Grace Period: Federal Perkins Loan has a grace period for nine-month. If you break your grace period by going back to school, enroll in some courses to maintain at least half-time status in a qualifying course of study and submit the apt student deferment form, you will be allotted another nine-month as grace period for your repaying your student loan.

Benefits: Perkins loan will award you another six-month grace period at the time you exit. Another benefit is that every time you qualify for deferment, you will be granted a minimum six-month grace period following the end of deferment.

Other Student Loan Grace Periods

There are a variety of loans offered to students, like Regents Loans, Primary Care Loans, Dental and Health Profession Student Loans. To know the exact grace period for these loans you should follow the steps given below:

Step 1: Read your loan promissory note. If you misplaced your promissory note, go to step two.

Step 2: Contact the holder of your loan promissory note. The holder is known as the lender. He will provide you this information.

I hope you got a clear-cut idea about student loan grace periods. Thank you!

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