When do I have to start payments on my student loan?

Stafford Loans

Stafford loan borrowers begin repayment after a 6-month grace period. Students enter their grace period after dropping below at least half-time enrollment status from the school they are attending.

On the subsidized Stafford loans the government pays all interest during the grace period. If the students receive unsubsidized Stafford loans, the students are responsible for paying all interest that accrues during the life of the loan. Borrowers having unsubsidized loans may choose to pay the interest payments or allow the interest charges to accrue towards their loans' principal balance.

PLUS Loans

PLUS loan borrowers begin repayment of their loans within sixty (60) days of the final loan disbursement, however for loans disbursed on or after July 1, 2008, borrowers can request their lender to defer loan payments until six months after the student graduates or ceases to attend school on at least a half-time basis. If the parent borrower, is also a student, they may begin repayment six months after they graduate or cease to attend school on at least a half-time basis. Interest on the loan will continue to accrue during these periods of deferment.

Graduate and professional students who borrow under the Grad PLUS program qualify to defer their loan payments while they attend school on at least a half-time basis. In addition, for loans disbursed on or after July 1, 2008, loan payments can be deferred for the six-month period immediately following the date on which the borrower graduates or ceases to be enrolled on at least a half-time basis. Interest on the loans continues to accumulate on the Grad PLUS loans during this deferment period.