Student Loans After Graduation

An overview of what you can expect from a student loan grace period

Congratulations! You've finally graduated from college, and you're ready to take on the world. But what about those student loans you haven't been paying much attention to since you began school?

The good news is that your lender is responsible for informing you about your student loans after graduation. Be sure to look out for these updates from your lender after graduation and make sure they have all the correct contact information as well. Before you begin repaying your student loans, your loan holder must provide a student loan repayment schedule and other detailed information about rates, fees and the balance you owe. Your lender or loan holder must also provide you with information on the repayment plan you chose for your federal student loans.

What does a student loan grace period mean?

In the context of student loans, grace periods are a length of time before you have to begin repaying your loan, either after you've graduated or dropped below half-time attendance. Grace periods are granted with the understanding that it generally takes most students a few months to get their post-college life in order, find a job and begin drawing a salary from which they can repay their loans. Naturally, you can begin repaying your student loans earlier. That reduces the overall interest you will pay over the life of the loan (if the loan is unsubsidized or a private loan). Just make sure to notify your lender.

Your student loan promissory note contains all the details of your grace period. For Federal Stafford Loans, that grace period is six months. For Federal Perkins Loans, it's nine months. Federal PLUS Loans do not have grace periods but parents can leverage a post-disbursement forbearance for up to 48 months provided their child is attending school at least half-time. For the Citizens Bank TruFit Student Loan®, the grace period is six months.

Grace periods should not be confused with student loan deferments and forbearances, which are temporary forgiveness of loan repayment for such reasons as economic hardship or temporary physical disability.

Exceptions

If you've been called to active military duty, you may qualify for grace periods of your student loans as long as three years. And if you return to school, you may also qualify for an additional grace period. But it's important to first check with your lender or loan holder and receive their formal approval before you stop repaying your loan.

To brush up on your student loan responsibilities after graduation, it's a good idea to pull out your loan papers and revisit the fine print. Just look for the Master Promissory Note, which contains a list of your repayment responsibilities.

Find flexible student loan help from Citizens Bank

We want to help you find the financing you need, as well as the student budgeting resources and convenient student bank accounts that meet the needs of busy college students. If you need help financing additional education goals, find helpful information about the affordable Citizens Bank TruFit Student Loan®. If you have more questions, call a student loan specialist at 1-800-708-6684, and we'll help walk you through the process.