Student Loan Repayment
Student loan repayment depends on what type of loan you have, federal or private. Your school, bank or lender will send you detailed information about your repayment schedule terms and start dates. You will usually make monthly payments once your repayment schedule begins. The amount depends on the size of your debt (including interest) and the length of the repayment plan you choose.
Federal Student Loan Payment
You typically have a grace period after you graduate before you need to start repaying a Stafford or Perkins loan. Federal Perkins Loans: Repayment begins nine months after you graduate or drop below half-time status.
Direct FFEL Stafford Loan: Repayment begins six months after you graduate or drop below half-time status. For subsidized loans, you don't have to pay any principal and you won't be charged interest during the grace period. For unsubsidized loans, you will only be charged interest during the grace period.
With PLUS loans, there is no grace period. You start repaying both principal and interest generally 60 days after the loan is completely paid out.
Private Student Loan Payment
Most private loans give you 20 to 25 years to repay the loan.
As for repayment, you have a few different options:
- Start paying the principal and interest right away
- Start paying the interest only. Defer the principal until after graduation (or if you fall below half-time status)
- Defer paying principal and interest until after you graduate or fall below half-time status. This may result in higher fees and increase the total amount you pay on the loan.
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Now that you've read Student Loan Repayment Information | Student Loan Payment, learn how much you will pay using the tools in the next section, Student Loan Payment Calculator.