Repayment starts six months after you leave school, but the clock depends on your loan type and enrollment status

For federal loans, the grace period — the time before you owe your first payment — is usually six months after you graduate, leave school, or drop below half-time enrollment. During this time, interest still accrues on unsubsidized loans, but you are not required to pay. Private loans have different grace periods set by each lender, ranging from zero months to six months, and some charge interest immediately.

The exact start date matters because missing it can damage your credit and trigger collection action. Your loan servicer will send you a repayment schedule before payments are due, but you should not wait for that notice to plan. If you leave school mid-semester, your grace period clock starts from your actual last day of enrollment, not from the end of the term.

Key Takeaways

  • Federal student loans enter a six-month grace period after you graduate or drop below half-time enrollment, during which payments are not required but interest still accrues on unsubsidized loans.
  • Private student loans have grace periods set by the lender, which may be shorter than six months or nonexistent, so you should contact your lender directly to confirm your start date.
  • Your loan servicer will mail a repayment schedule before payments are due, but you can log into your account online to see your grace period end date without waiting.
  • If you return to school at least half-time, your grace period restarts, giving you another six months after you leave again.
  • Interest on unsubsidized loans continues to accrue during the grace period, so paying voluntarily during this time reduces what you owe later.

How the six-month grace period works for federal loans

When you leave school — whether by graduating, withdrawing, or dropping below half-time status — your federal loan servicer notes your last day of enrollment. Six months later, your first payment is due. This grace period applies to Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans.

During the grace period, you do not have to pay, but interest on unsubsidized loans keeps growing. If you have a subsidized loan, the government covers the interest during this time, so nothing accrues. If you have both types, the unsubsidized portion will have accumulated interest by the time repayment starts, and that interest may be capitalized (added to your principal) depending on your repayment plan.

You can find your grace period end date by logging into your Federal Student Aid account at studentaid.gov or by contacting your loan servicer directly. Your servicer's contact information appears on your loan statements and on the studentaid.gov website under "My Aid."

Private loan grace periods vary by lender

Private student loans do not follow a federal standard. Some lenders offer a six-month grace period similar to federal loans; others offer three months, one month, or none at all. A few charge interest from the moment you borrow, even while you are still in school. You need to check your promissory note or contact your lender to know your specific grace period.

Unlike federal loans, private lenders are not required to notify you before your grace period ends. Set a calendar reminder for one month before your expected start date and contact your lender to confirm the exact due date of your first payment. If you miss a payment on a private loan, the lender can report it to credit bureaus immediately, and late fees may apply.

What happens if you return to school

If you enroll at least half-time at an may be able to access school after your grace period begins, your grace period clock resets. You get another six months (for federal loans) after you leave school again. This applies even if you have already started making payments.

You must notify your loan servicer of your new enrollment status. Some schools report this automatically through the National Student Loan Data System (NSLDS), but you should confirm with your servicer that they have received the update. If they do not know you are back in school, they will continue sending payment notices and may report you as delinquent.

Interest accrual during the grace period

On subsidized federal loans, the government pays the interest that accrues while you are in school and during the grace period. You owe only the principal you borrowed.

On unsubsidized federal loans, interest accrues from the day the loan is disbursed. During the grace period, this interest does not have to be paid, but it is still accumulating. When repayment starts, you can either pay the accrued interest or let it be capitalized — added to your loan balance. Capitalization increases the amount you owe and the total interest you will pay over the life of the loan.

Some borrowers choose to pay the accrued interest during the grace period to avoid capitalization. Even small payments reduce what gets added to your principal. If you cannot afford to pay during the grace period, capitalization will happen automatically when your repayment plan begins.

Repayment plans and when payments are due

Federal loans offer several repayment plans, and your choice affects when and how much you pay. The Standard Repayment Plan has a fixed payment over 10 years and is the default if you do not choose another plan. Income-Driven Repayment plans (PAYE, REPAYE, IBR, ICR) base your payment on your income and family size, and some may result in a $0 monthly payment if your income is low enough.

Your first payment under any plan is due on the date your grace period ends. If you select an income-driven plan, you must submit your income information to your servicer to receive a payment calculation. Until you do, you will be assigned the Standard plan by default. You can change plans at any time, and your servicer can walk you through the options.

What to do before your grace period ends

About 15 days before your grace period ends, your loan servicer will mail you a repayment schedule showing your payment amount, due date, and payment method options. Do not assume this is your only notice. Log into your servicer's website or the Federal Student Aid portal to confirm your end date and review your loan details.

If you have private loans, contact each lender separately to confirm your start date. Set up automatic payments if possible — most lenders offer a small interest rate reduction (usually 0.25%) for autopay enrollment. If you expect financial hardship, contact your servicer before your first payment is due to discuss deferment, forbearance, or income-driven repayment options.

Frequently Asked Questions

Does my grace period start if I take a semester off but plan to return?

No. Your grace period begins only when you leave school for good or drop below half-time enrollment with no plan to return. If you are on an approved leave of absence or taking a semester off before returning, your grace period has not started. Confirm your status with your school's financial aid office to be certain.

What happens if I do not receive my repayment schedule in the mail?

Check your servicer's website or call them directly — the schedule may have been sent to an outdated address. You are responsible for knowing your due date even if you do not receive written notice. Logging into your account online is the fastest way to find this information without waiting for mail.

Can I make payments during my grace period?

Yes. Payments made during the grace period go toward your principal and reduce the amount of interest that will be capitalized. There is no penalty for paying early, and many borrowers use this time to pay down unsubsidized loan interest before repayment officially begins.

What if my grace period ended and I never received a bill?

Contact your servicer immediately. If you have missed payments, your account may already be reported as delinquent. Calling quickly gives you a chance to bring your account current and discuss options like forbearance or a payment plan. Do not ignore the situation, as it will damage your credit.

Do Parent PLUS loans have a grace period?

No. Parent PLUS loans begin accruing interest immediately and repayment can start as soon as the loan is fully disbursed, though most borrowers are given until after graduation to begin. Check your promissory note or contact your servicer for your specific start date.