Subsidized Stafford undergraduate loan grace period and graduate school

Paying for College
1

I think I know the answer to this question, but it’s a bit ambiguous from what I read. If a Stafford loan is taken out as an undergrad, you don’t need to start paying it back till after the grace period - 6 months after graduating from college or dropping below half-time enrollment status. If you go to graduate school directly after undergrad, does that grace period end 6 months after undergraduate or graduate school?

I assume graduate school, but not 100% sure after googling around.

2

your loans will be in deferral if you enroll in grad school immediately after or with in 6 months after undergrad.

Any unsub loans will continue to accrue interest while you are in grad school. 6 months after grad school, you will have to start paying on all loans

3

Thank you

4

@sybbie719


[QUOTE=""]

Any unsub loans will continue to accrue interest

[/QUOTE]

[all discussion below pertains to subsidized loans.]

  1. Actually it turns out that even direct Stafford subsidized loans accrue interest DURING grace period. Well, not quite. Apparently some direct Stafford subsidized loans do, some direct Stafford subsidized don't. Does anyone know "authoritatively? What I understand is that loans made on or after July 1, 2012, and before July 1 2014 do not enjoy interest paid by the government for (again) subsidized loans. But what happens for the other period is not very clear.
  2. Grad school starts in fall, undergrad ends in May, what happens in between? Interest accrues, or not?

[QUOTE=""]

your loans will be in deferral if you enroll in grad school immediately after or with in 6 months after undergrad.

[/QUOTE]

  1. Does one have to specifically apply for deferral? What is the proof? Admission letter? Enrollment letter in Fall?

Thanks!

5

start here

https://studentaid.ed.gov/sa/types/loans

Don’t you have to go to loan counseling at your school before graduation?

6

[QUOTE=""]

Don’t you have to go to loan counseling at your school before graduation?

[/QUOTE]

yes. but neither the website you refer nor the counselling explicitly address the issues I had posted.
The general concepts are clear, but the crucial details are missing.

Esp. regarding direct subsidized loans administered during different periods of government shutdowns.

7

Contact your loan servicer or servicers to ask about this … they have the detailed information about your loans and your situation.