 TITLE: What Is a Student Loan Grace Period? CONTENT: Do Private Student Loans Have a Grace Period?\n---------------------------------------------\nMany students supplement their federal direct loans with private student loans funded by credit unions, banks (traditional and online) or other financial institutions. Because they are not subsidized, private loans begin accruing interest as soon as the funds are disbursed.\nEach private lender is free to determine its own rules regarding grace periods. Depending on the lender and the specific loan, you may have a grace period of six months or nine months before you start paying the loan—or no grace period at all.\nGrace periods and all of a loan's terms appear in the initial loan agreement. If you're unclear about when you need to send your first payment and don't have the paperwork anymore, call the lender immediately and ask. END