Grace period on federal loans?

Paying for College
1

<p>I have always heard that federal loans have a six-month or nine-month grace period. </p>

<p>I graduate in June 2012, and so I was expecting to start paying back my loans around December or January.</p>

<p>However, when I look my loans up, they all either say 'scheduled start of repayment 3/16/2014' or 'scheduled start of repayment 12/16/2013'</p>

<p><a href="http://i.imgur.com/42JBS.png%5B/url%5D"&gt;http://i.imgur.com/42JBS.png&lt;/a&gt;&lt;/p>

<p>So, is it true that I will have over a year after I graduate before I have to start paying off my loans?</p>

<p>Thanks in advance for any advice.</p>

<p>I have eight loans on my account. I will copy and paste them:
Type of Loan: 1 FEDERAL PERKINS
Scheduled Start of Repayment: 03/16/2014
Loan Period Begin Date: 07/01/2011
Loan Period End Date: 06/30/2012 </p>

<p>Type of Loan: 2 DIRECT STAFFORD SUBSIDIZED
Scheduled Start of Repayment: 12/16/2013
Loan Period Begin Date: 08/31/2011
Loan Period End Date: 06/08/2012 </p>

<p>Type of Loan: 3 DIRECT STAFFORD UNSUBSIDIZED
Scheduled Start of Repayment: 12/16/2013
Loan Period Begin Date: 06/16/2010
Loan Period End Date: 06/10/2011 </p>

<p>Type of Loan: 4 DIRECT STAFFORD SUBSIDIZED
Scheduled Start of Repayment: 12/16/2013
Loan Period Begin Date: 06/16/2010
Loan Period End Date: 06/10/2011 </p>

<p>Type of Loan: 5 FEDERAL PERKINS
Scheduled Start of Repayment: 03/16/2014
Loan Period Begin Date: 07/01/2010
Loan Period End Date: 06/30/2011 </p>

<p>Type of Loan: 6 DIRECT STAFFORD UNSUBSIDIZED
Scheduled Start of Repayment: 12/16/2013
Loan Period Begin Date: 12/29/2009
Loan Period End Date: 03/19/2010 </p>

<p>Type of Loan: 7 FEDERAL PERKINS
Scheduled Start of Repayment: 03/16/2014
Loan Period Begin Date: 07/01/2009
Loan Period End Date: 06/30/2010 </p>

<p>Type of Loan: 8 DIRECT STAFFORD SUBSIDIZED
Scheduled Start of Repayment: 12/16/2013
Loan Period Begin Date: 09/02/2009
Loan Period End Date: 06/11/2010</p>

2

<p>You should receive info from your financial aid office instructing you to attend a loan exit interview prior to graduation. At that time your correct graduation date will be noted and the repayment dates will change to reflect the correct graduation date. You are correct, repayment should begin in December or January.</p>

3

<p>Even if you have more time to start paying off your loans, you should keep in mind that unsubsidized loans continue accrue interest even during grace period.</p>

4

<p>Staffords have a 6 month grace period. Perkins have a 9 month grace period.</p>

<p>As hoosiermom said, once you actually graduate, the dates will be adjusted to reflect accurate repayment dates.</p>

5

<p>maybe kelsmom will see this post and have an answer.</p>

6

<p>

That is only true for subsidized loans prior to July of this year. See below:</p>

<p>Subsidized loans are loans for which the borrower is not responsible for the interest while the student is enrolled in college on at least a half-time basis, when the loan is in the six-month grace period after the student is no longer enrolled at least half time, or if the loan is in a deferment status. This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. If you receive a subsidized loan during this timeframe, you will be responsible for the interest that accrues while your loan is in the grace period. You do not have to make payments during the grace period (unless you choose to) but the interest will be added (capitalized) to the principal amount of your loan when the grace period ends.</p>

<p>Good think the OP graduates before this goes into effect. ;)</p>

7

<p>Kdog, that eliminates the interest subsidy but the grace period for payment still exists.</p>

8

<p>Erin’s Dad, I realize that but if you follow the post from lerkin and the response by swimcatsmom you’ll get the reason for my response. :wink: Perhaps it was a reply to the OP and not lerkin and just coincidence it followed right after.</p>

9

<p>Swimcatsmom’s comment jives with what happened with S1’s loans. His first Staffords were due in Dec/Jan and Perkins was this month. He graduated in mid-May last year.</p>