Direct Subsidized and Unsubsidized loans

Once you graduate, drop below half-time enrollment, or leave school, your federal student loan goes into repayment.

However, if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, you have a six-month grace period before you are required to start making regular payments.

Payments to the principle and interest on Federal Direct Unsubsidized Loans can be deferred while the student is in school and during the grace period (although interest will still accrue).

Deferred interest will be capitalized (added to the principle) at repayment or the borrower can pay while in school.

PLUS loans

PLUS loans do not have a grace period; but if you received a PLUS loan as a graduate or professional student, you’ll automatically get a six-month deferment after you graduate, leave school, or drop below half-time enrollment.

If you’re a parent borrower who took out a PLUS loan to pay for your child’s education, the loan will enter repayment 30 days after the final disbursement.

You can request a six-month deferment after your child graduates, leaves school, or drops below half-time enrollment by your contacting your loan servicer.

More information

The standard repayment period for all Federal loans is 10 years but can be extended.

See the Federal Student Aid website for more information about federal loan repayments.