Grace Period

For most federal student loan types, after you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period before you must begin making payments. This grace period gives you time to get financially settled and to select your repayment plan. Not all federal student loans have a grace period.

Note that for most loans, interest accrues during your grace period  this link will open in a new window. The interest that accrues during your grace period will be added as unpaid interest to the outstanding balance of your loan, but it will not yet be capitalized. This means that the unpaid interest might increase your monthly payment amount under a fixed payment repayment plan or increase the time to repay your loan in full under an IDR plan. You can always pay the unpaid accrued interest before entering repayment. Learn more about the in grace status at Studentaid.gov  this link will open in a new window.

Your Responsibilities

• Make sure your and your references' addresses, phone numbers, names and email addresses are up to date so we can reach you with important account information. This can be updated directly through MOHELA or during the exit counseling process.

• You are not required to make payments at this time. If you can afford to make even some payments while you are in your grace period, it will save you money down the road and reduce the total amount that you repay. See the Payment Methods page for more information.

Helpful Tips

Locate Your Loans and Decide If You Can Afford Your Monthly Payment.

• Locate each of your federal loans by logging into the Department of Education's Office of Federal Student Aid  this link will open in a new window.

• Create a budget to help you determine how much will be able to go toward student loans.

• Determine which repayment plan you qualify for that will work best for you. If you are unable to make your upcoming scheduled payments, contact us right away to explore your options.

• We will send communication about preparing to enter repayment and the various repayment options for which you may qualify, a repayment obligation with loan details, and a bill 20-25 days before your first payment is due. It will include information about how to make your first student loan payment.

• Set Up your online account (if you haven't done so already) to view your loan details, enroll in Auto Pay, Go Paperless and sign up for notifications.

• Check out our Resources including links to school, budget and career resources.

  • Repayment Options

  • Budget Resources

• Military Benefits, Public Service Loan Forgiveness  this link will open in a new window, Teacher Loan Forgiveness benefits

• Other benefits

• Connect with us on Facebook  this link will open in a new window and Twitter  this link will open in a new window to get up-to-date information about ways to help you manage your student loans.

• Federal Student Aid YouTube Videos:

  • Repayment: What to Expect  this link will open in a new window

FAQs