How to Understand When to Start Paying Back a Student Loan

Student loans are not free money. Eventually you will have to pay them back. The amount of time you have before you have to start paying back your student loan differs depending on a few different factors.

Instructions

    • 1

      Read your promissory note. Listed in your promissory note that details your payment terms and rates. This will include a contract that says you will pay back your loan, and the specifics on your grace period.

    • 2

      Know that all federal loans have a grace period of anywhere from three to nine months. For private loans, call your lender and ask them how long their grace period is.

    • 3

      You start your grace period when you graduate, drop out of college, or drop below half time status. After this period, you will need to start paying back your loans.

    • 4

      Generally, Stafford loans have a six month grace period. Stafford loans are also on a monthly billing cycle. This means if your grace period runs out in January, your first payment will be due in February.

    • 5

      Perkins loans on the other hand have a nine month grace period and are paid in quarterly installments. This means if your grace period ran out in January, you will have to start making payments in April.

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