Your student loan grace period is a set amount of time after you graduate, leave school, or drop below half-time enrollment, but before you must begin repayment on your loan. The grace period gives you time to get financially settled and to select your repayment plan. Not all federal student loans have a grace period. Note that for many loans, interest will accrue during your grace period.
Here are three things you can do during your grace period to prepare for repayment:
1. Get Organized
Start by tracking down all of your student loans. There is a website that allows you to view all your federal student loans in one place. You can log in to www.nslds.ed.gov using your Federal Student Aid PIN to view your loan balances, information about your loan servicer(s), and more.
Note: Don’t forget to check to see if you have private student loans. The Consumer Financial Protection Bureau has a great Student Debt Repayment Assistant to help you learn about the repayment process, whether you have federal loans, private loans or both.
2. Contact Your Loan Servicer
A loan servicer is a company that handles the billing and other services on your federal student loan. Your loan servicer can help you choose a repayment plan, understand loan consolidation, and complete other tasks related to your federal student loan, so it is important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help.
To find out who your loan servicer is, visit nslds.ed.gov. You may have more than one loan servicer, so it is important that you look at each loan individually.
3. Explore Your Repayment Plan Options
Although you may select or be assigned a repayment plan when you first begin repaying your student loan, you can change repayment plans at any time. Flexible repayment options are one of the greatest benefits of federal student loans. There are options to tie your monthly payments to your income and even ways you can have your loans forgiven if you are a teacher or employed in certain public service jobs. Work with your loan servicer to determine which repayment plan is right for you.