Free Repayment Guide » In Grace » Understand Grace

Understand Grace

Grace periods provide borrowers with time to get their feet on the ground after they graduate and before they have to start paying back their student loans.  Repayment on student loans then generally begins when your grace period expires.

Notifications – You don’t have to apply for grace periods; they start automatically when you graduate or drop below half-time status.  Your loan servicer will send you a notice approximately 30–45 days prior to the expiration of your grace period letting you know when it will expire and what your options are.

Special Tip #1 – Grace periods can lull you into thinking you have more money than you actually do because you can go for several months without being required to make any payments.  Just remember that, once your grace period expires, you have to begin actively repaying your student loans.  If you don't budget for that, you could get in trouble quickly.

Special Tip #2 – The grace period for federal loans starts as soon as your enrollment drops below half-time, even if you have not graduated.  So, if you’re almost finished with your program and are just taking a class or two to finish up, your grace period may already have started!

The specifics of your grace period will vary depending on the types of loans you have:

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