 TITLE: What Is a Student Loan Grace Period? CONTENT: How to Repay Your Student Loan\n------------------------------\nWhen you're getting ready to start paying off your student loan, keep these things in mind:\n*   **Prepare for monthly loan payments.** Whether or not you jumpstarted the repayment process by sending in interest payments, once the grace period is up it's time to make your full loan payments. Review your budget and make room for your new monthly obligation.\n*   **Know the payoff term.** Your student loan will have a fixed payoff term. For example, the standard term for direct loans and PLUS loans is 10 years. Terms for private loans are typically five to 20 years.\n*   **Use extra funds wisely.** If you carry a mix of subsidized and unsubsidized loans and have some extra money to kick in, send it to your unsubsidized loan with the highest interest rate first. There's no reason to stretch debt out if you don't have to.\n*   **Defer or forbear if necessary.** If the grace period clock on subsidized loans is ticking too fast and you don't have the money to start paying, consider a deferment. As long as you qualify, it allows you to hit the payment snooze button for up to three years, without interest being added. Forbearances are also a way to delay payments after a grace period is up. They're easier to qualify for, but interest accrues whether your loans are subsidized or not. Be aware, though, that deferments and forbearances are not available on PLUS loans or private student loans.\n*   **Communicate problems and ask for assistance.** If you can't meet a payment's due date, contact the lender right away. There are alternative payment plans for direct loans. Even if you have the other types of student loans, lenders want to hear from you before you start to fall behind. Together you may be able to develop a feasible plan to offset credit damage.\nA student loan grace period offers a helpful way for you to prepare for your upcoming loan payments. If possible, pay off your interest before the loan capitalizes, and then make all loan payments on time.\nConsider getting a free copy of your [Experian credit report](;bcd=ad_c_sem_427_393142368859&k_id=_k_Cj0KCQiAmsrxBRDaARIsANyiD1o-JnXN1ud9RsTQnMtqw9Xtln7v0-oIoITktjDBxvVRhKeJouj2O0QaAvKlEALw_wcB_k_&k_kw=aud-531599684562:kwd-27441653&k_mt=e&pc=sem_exp_google&cc=sem_exp_google_ad_7708912303_85065367841_393142368859_aud-531599684562:kwd-27441653_e_1t1__k_Cj0KCQiAmsrxBRDaARIsANyiD1o-JnXN1ud9RsTQnMtqw9Xtln7v0-oIoITktjDBxvVRhKeJouj2O0QaAvKlEALw_wcB_k_&ref=boostfreebrand&awsearchcpc=1&gclid=Cj0KCQiAmsrxBRDaARIsANyiD1o-JnXN1ud9RsTQnMtqw9Xtln7v0-oIoITktjDBxvVRhKeJouj2O0QaAvKlEALw_wcB) to ensure your loan payments are being reported. Student loans may be the first loans you get—and managed properly, they can help build a long and positive credit history. END