-After graduation, there is a standard 6-month grace period.
-Pay a little now to save a lot later. Although payments aren’t due at this time, interest grows or “accrues” on unsubsidized loans while you’re in school, grace, or deferment. When you enter repayment, this unpaid interest is “capitalized” or added to your loan balance. At that point, interest will then begin to accrue on the new, higher loan balance.
We encourage you to consider making payments while you’re in school, grace, or deferment – no matter how small. Money you are able to apply to your student loan balance now will reduce the amount of accrued interest on your unsubsidized loans. That means less interest to be capitalized and added to your balance later – helping you save money in the long run. You can also make payments on any subsidized loans you have while you’re in school, grace, or deferment, which can reduce your principal balance while receiving a government interest subsidy.
Start learning about repayment plans. The Department of Education website, StudentLoans.gov, will help you evaluate your federal student loan repayment options and determine which plans you may qualify for. While you’re there, log in and try out the Repayment Estimator to see the impact of future borrowing and personalized repayment plan choices, including repayment plans based on income.
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