When Do Graduates Repay Loans?
You’ve graduated at last. Hopefully, you have a job ready and waiting for you or are very close to securing employment. As you’re admiring that crisp diploma, it hits you—I have to begin repaying all of those student loans. How does that work exactly? Do you get home from the graduation ceremony still dressed in your cap and gown to find loan sharks waiting at your door or a bill in the mailbox? Fortunately for you and all other recent graduates who filed away the student loan paperwork and ignored it, some loans offer a grace period.
Federal Perkins Loan
The Federal Perkins Loan offers a nine-month grace period before you must begin making payments. If you choose to go back to school during this nine-month period, make sure that you enroll with at least a half time status and request a deferment. This will ensure that you can receive the nine-month grace period again in the future. Anytime you file for a deferment with a Federal Perkins Loan, regardless of type (economic hardship, student, etc.), you will be given a six-month grace period after the deferment time has expired.
Federal Stafford Loan
With a six-month grace period, the Federal Stafford Loan provides a shorter grace period than the Federal Perkins Loan. Unlike the Federal Perkins Loan, you are not given another grace period after deferment, no matter what type of deferment you requested. Also, if you allow your grace period to expire without re-enrolling in school, you will not be able to receive another six-month grace period in the future.
Other Loans
The repayment terms and conditions will vary for other loans. To find out the duration of the grace period on any loan, start with the loan promissory note, which should have details regarding the grace period your loan. If you do not have your promissory note, contact your lender. If you’ve forgotten who your lender is, use the following information to locate your loans.
- The National Student Loan Data System (NSLDS)
- The NSLDS is a central database of student aid for the U.S. Department of Education.
- Call 1-800-4FEDAID (1-800-433-3243) and select option 3 “Borrower Loan Tracking Division”.
- Go to www.nslds.ed.gov and click on “Financial Aid Review”.
- The National Student Clearinghouse (NSC)
- The NSC is a non-profit organization that serves as a single point of contact for checking a student’s status.
- Go to www.nslc.org and click on “Students”. The “LoanLocator” is on this page.
- Financial Aid Office
- Contact your school’s financial aid office to locate your loan information.
- Credit Bureau Reports
- Although there is a charge for this service, you can locate your lender by obtaining your credit information from any of these credit bureaus:
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- Equifax
1-800-658-1111
www.equifax.com - Experian
1-888-397-3742
www.experian.com - TransUnion
1-800-916-8800
www.transunion.com
- Equifax
