 TITLE: When Do Student Loans Start Accruing Interest? CONTENT: Is There a Grace Period?\n------------------------\nMany loan providers offer a grace period that postpones your loan payments until after you leave school and have the opportunity to start earning a decent salary. That grace period can be as short as a few months or as long as six months. So, for example, if you leave school in June and your lender gives you a six-month grace period, your first loan payment will be due in January of the following year.\nNot all grace periods are the same, though. It depends on the loan type and servicer. Below are the grace periods for both federal and private loans:\n*   **Subsidized and unsubsidized direct federal loans**: Six months\n*   **PLUS federal loans**: No grace period. However, graduate and professional students are given an automatic six-month deferment on loan payments; parents with PLUS loans can request a six-month deferment. Contact your servicer to find out more.\n*   **Private loans**: Varies by lender\nThinking of delaying your student loan payments until the grace period is over? Doing so can help you keep more money in your pocket for now, but could mean increasing the total cost of the loan depending on the type of loan you have. As mentioned, interest will continue to accrue on unsubsidized loans and make them even more costly over time due to capitalized interest.\nHowever, it won't hurt to let the grace period run its course if your loans are subsidized. You don't pay interest on these loans until it's time to start repaying them, so the original loan amount will be the same amount you owe when the grace period is over. END