A grace period is a set length of time after a student separates from the university during which the student is not required to make a payment on their loan. The grace period allows a borrower to delay payment for a short period of time before any due date which gives time to get financially settled and to select your repayment plan. During this period, no late fees are charged, no interest is accrued, and the delay cannot result in default or cancellation of the loan. You can make prepayments on your loan while you’re still in school or during your grace period. 

Depending on the loan taken out, the length of the grace period may vary before you must start making regular payments. 

FEDERAL DIRECT LOANS

1. Federal Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan – 6-month grace period 
2. PLUS Loan – No grace period 
3. Graduate/Professional Student PLUS Loan – deferment while still in school and then an additional 6-month grace period after graduating, leaving school, or dropping below half-time enrollment 

CAMPUS-BASED LOANS

1. Dream Loan – 6-month grace period 
2. Perkins Loan – 9-month grace period 
3. University Loan – 9-month grace period 
4. Quon Loan – 9-month grace period  

There are also circumstances that may affect your grace period that include the following: 

Active Military Duty – If you are called to active military duty for more than 30 days before the end of your grace period, you will receive the full six-month grace period when you return from active duty.

Returning to school before the end of your loan’s grace period – If you reenroll in school at least half-time before the end of your grace period, you will receive the full six-month grace period when you stop attending school or drop below half-time enrollment.

Loan Consolidation – If you consolidate any eligible loans during your grace period, you give up the remainder of your grace period and begin repayment after your Direct Consolidation Loan is processed (unless you request to have the processing of your consolidation loan delayed until closer to the end of your grace period).