What is a Grace Period?
After you graduate, leave school, or drop below half-time enrollment, most loans are eligible for a six-month Grace Period; during this time, no payments are due. This is the best time to plan your repayment strategy and prepare to make your first payment!
Types of loans that have a Grace Period
- Direct Subsidized Loans and Direct Unsubsidized 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, you can request a six-month deferment after your child graduates, leaves school, or drops below half-time enrollment.
- If you received a Federal Perkins Loan, check with the school where you received your loan.
What can affect your Grace Period?
Active duty military, returning to school before the end of your loan’s Grace Period, and loan consolidation can affect your Grace Period.
- Active duty military- If you are called to active duty military service 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 Grace Period- If you re-enroll 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 your loans during your Grace Period, you give up the remainder of your Grace Period and begin repayment after your Direct Consolidation Loan is processed.
What can you do to prepare for a successful student loan repayment while in Grace?
- Update your contact information by contacting us or by logging into our website at https://public.OSLA.org. Wrong information could cause you to miss key updates as you get ready for payments to restart.
- Create an account on our website. You can update your contact information, see payment amounts and due dates. You can also view and select repayment plan options that will best fit your needs.
- Watch for emails or paper correspondence from OSLA with important information regarding your student loan.
- Be aware of 3rd party debt relief companies. They charge fees for services that OSLA can do for free.
- Contact us if you want to restart your auto-debit (Kwikpay®) or sign up for the first time. Get a 0.25% reduction on your interest rate by signing up for Kwikpay®. Paying your student loan becomes effortless and you save money.
- Use Loan Simulator to make sure you are on the best repayment plan for your current circumstances.
- Review your payment schedule and repayment terms.
- Consider applying for an Income-Driven Repayment (IDR) plan to make your monthly payment more affordable.
- If you can, pay down your accrued interest. Making payments on accrued interest during your Grace Period can help minimize capitalized interest to your student loan and save you money.
- Contact us if you need assistance selecting the best repayment option for you at 1-866-264-9762.