 |
|
|
Repaying Loans
Student loan repayment begins after you graduate or are no longer enrolled at least half-time in school. Some Federal loans come with a "grace period" which gives you additional time before you must begin making payments.
Federal Perkins Loans have a 9-month grace period before repayment begins. Since the Perkins loan is a subsidized student loan, the government will pay the accruing interest during the grace period.
Federal Stafford Loans have a 6-month grace period before repayment begins. As with the Perkins loan, the government will pay the accruing interest during the grace period on a subsidized Stafford loan. Any interest that accrues on an unsubsidized Stafford loan during the 6-month grace period must be paid by the borrower.
Federal PLUS and Grad PLUS Loans do not have a grace period, but repayment can be deferred while in school (at least half-time). Also, for PLUS loans first disbursed on or after July 1, 2008, you may postpone payments for an additional six months after graduation or enrollment drops below half-time. Interest will accrue during these periods and must be paid by the borrower.
When it's time to begin making payments be sure you know your loans, including the types of loans you have, the balance of each loan, and the interest rate of each loan. You'll have several repayment plans to choose from that will help you achieve a monthly payment that fits your budget.
Keep in mind, your student loans must be repaid even if you don't complete your education, aren't satisfied with the education you received or don't get a job after college. If you are having difficulty making payments on your loans you may be able to postpone your payments for a period of time. Failure to repay your loans could lead to default which has serious consequences.
For more details about default and what options you have if you've defaulted on your loans visit:
|
|
|
|
|