Delaying the Inevitable - Grace Period

Many student loans provide a "grace period" immediately following graduation. This is a time when payments are not required and, in many cases, interest does not accrue. The grace period must be used before you can obtain deferments. Some loan programs provide another grace period, lasting six months, after periods of approved deferment. The Unsubsidized Federal Stafford Loan charges interest during the six-month allowable grace period. The HEAL and alternative loans also charge interest during grace. We provide a chart that has grace period information for the various federal student loan programs.
If you took a leave of absence from your undergraduate education or interrupted your medical school studies (for research, illness, etc.), your loans were placed in grace at that time. Whether or not you receive another grace period upon graduation from medical school depends on the length of time you are away from undergraduate or medical school and the policies of the individual loan programs. The status of your grace period (or lack thereof) is vitally important since it usually affects when your deferment period begins and, ultimately, when actual loan repayment begins. Information on grace periods follows.
Federal Perkins Loans
Grace period is six or nine months (check your promissory note). Borrowers also receive a six-month grace period after periods of eligible deferment.
National Direct Student Loans
Grace period is six months. Borrowers also receive a six-month grace period after periods of eligible deferment.
University of California Loans
Grace period is six months. Borrowers also receive a six-month grace period after periods of eligible deferment.
Health Professions Student Loans/ Primary Care Loans
Grace period is twelve months. Those who return to school after the grace period has ended do not receive an additional grace period and must begin immediate repayment.
Federal Stafford Student Loans
Grace period is six months. Those who return to school after the grace period has ended do not receive an additional grace period (except for loans made before 10/1/81).
Unsubsidized Federal Stafford Student Loans
Grace period is six months. Those who return to school after the grace period has ended do not receive an additional grace period.
Supplemental Loans for Students (SLS)
There is no grace period. Repayment begins 60 days after the loan is disbursed unless you obtained a student deferment. You must begin loan repayment as soon as you leave school. If you have Federal Stafford Loans in addition to SLS Loans, you can ask for a six-month forbearance so that your Federal Stafford Loan and SLS Loans enter repayment at the same time. Interest will accrue during this period.
Health Education Assistance Loans (HEAL)
Grace period is nine months. Students may sometimes receive another grace period after a deferment period--check with your lender.
Alternative Loan Program
For programs such as Medloans ALP, MedCap MAL, and/or MedAchiever loans, etc) see deferment section.