What is Grace Period? How long can you defer student loans after graduation?
Student Loan Grace Period
The Student Loan repayment schedule starts after you complete the graduation.
But in federal student loan, you get a grace period of 6 months which allows you extra time get the employment and financial stability to repay the loan.
So your repayment starts only after 6 months of graduation. After leaving school, your lender will send you the details of repayment amount, schedule, payment method, customer service number.
How Long You Can Defer Your Student Loan
- Most of the federal loans have a grace period of 6 months
- Usually, there is no grace period of Plus Loan but most of the student avail in-school deferment so they repay loan only after graduation. They may also allow a grace period of 6 months.
- Federal Perkins loans have a grace period of 9 months. Eligible borrowers can also avail an extra grace period of 6 months.
- Usually, private loans have no grace period. But it depends upon the specific terms and conditions of the loan.
So you must get in touch with your lender to understand the complete terms and repayment schedule.
Can You Defer You Student Loan Multiple Times
The best thing is to start paying your student loan as it will not only save the interest but also improve your credit score.
If the 6 month grace period is completed and you want to defer the loan then just request the lender for extra deferment. Your lender may allow the deferment due to financial hardship or any other reason.
But the deferment is surely harmful to your financial health so the better option is to avoid deferment and look for alternatives like change your repayment plan or go for refinancing