A grace period is the time after you leave school—graduate, withdraw, or drop below half-time—when you're not required to make loan payments yet.
For most borrowers, the grace period lasts 6 months, and it's your chance to:
✅ Get financially prepared
✅ Choose the right repayment plan
✅ Avoid missing your first payment
📌 Which Loans Have a Grace Period?
Loan Type | Grace Period? | Notes |
Direct Subsidized Loans | Yes (6 months) | Interest is not charged during the grace period. |
Direct Unsubsidized Loans | Yes (6 months) | Interest does accrue during the grace period. |
Subsidized/Unsubsidized Stafford Loans (FFEL) | Yes (6 months) | Same rules as above. |
PLUS Loans (Graduate or Parent) | ❌ No grace period | Repayment starts immediately, but grad students can request a 6-month deferment. |
Perkins Loans | Yes (9 months) | Longer grace period, but program has been phased out. |
🔁 Grace Period Exceptions & Things to Watch For
If you return to school at least half-time before your grace period ends, your grace period resets.
If you already used your grace period and then return to school, you don’t get another one when you leave again.
If you're called to active military duty for more than 30 days before your grace period ends, you’ll get a new 6-month grace period after returning.