Grace Period

After you graduate, leave school or drop below half-time enrollment, you are entitled to one grace period for Stafford and Perkins loans. During this time—which is typically six months for Stafford and nine months for Perkins—you are not expected to make payments. 

Grace periods are day-specific.  Your grace period begins on the day immediately following the day you stop attending school at least half time and ends on the day before the repayment period begins. The initial grace period isn't "used up" during shorter periods of non-enrollment. For instance, if you miss a semester (four months), but resume studies at least half time, you are still eligible for the full grace period when you graduate.

The interest on subsidized loans is paid by the federal government during your grace period.  On unsubsidized loans, you are responsible for the interest, and the unpaid interest is capitalized—added to the loan principal—at the time of repayment. 

Repayment begins the day after your grace period ends; your first payment is due within 60 days.  You should receive communication from your lender or servicer during your grace period. If not, contact your lender or servicer.

What about Graduate PLUS loans?  These loans do not have a grace period.  Repayment commences within 60 days after the loan has been fully disbursed.  Borrowers who are enrolled in school at least half-time are eligible for an in-school deferment (pdf).

For loans distributed on or after July 1, 2008, borrowers may contact their lender or servicer to request a six-month deferral beginning the day after they are no longer enrolled at least half time.