Most federal student loans give you six months after you leave school before your first payment is due. That’s the grace period. It starts when you graduate, leave school or drop below half-time enrollment.
Six months goes fast, though. And on most loans, interest keeps adding up the whole time. Here’s how long yours actually lasts, what it costs you, and what to get done before the first bill shows up.
The short answer
- Direct Subsidized and Unsubsidized Loans: six months. Perkins Loans: nine months.
- PLUS loans don’t have a grace period, but grad PLUS borrowers get an automatic six-month deferment after school and parents can request one.
- The government pays the interest on subsidized loans during grace. On unsubsidized loans, it builds up and can be added to your balance.
- If you don’t pick a plan, you get one: Tiered Standard for loans made on or after July 1, 2026, the 10-year Standard plan for older loans.
- Grace months don’t count toward Public Service Loan Forgiveness.
How long is the grace period on your loans?
It depends on the loan type, and a lot of people have more than one.
| Loan | Time before payments start | Interest during that time |
|---|---|---|
| Direct Subsidized | 6 months | The government pays it |
| Direct Unsubsidized | 6 months | You owe it, and it can be added to your balance |
| Grad PLUS | No grace period, but an automatic deferment while you’re in school at least half time and for 6 months after | You owe it, and it can be added to your balance |
| Parent PLUS | No grace period. If the parent requests a deferment, no payments while the student is enrolled at least half time and for 6 months after | You owe it, and it can be added to your balance |
| Perkins | 9 months, if you were in school at least half time | Check with the school that holds the loan |
| Private loans | Set by your lender | Set by your lender |
Parents, one catch: if you didn’t ask for that deferment, your parent PLUS payments were due once the loan was fully paid out. Not sure? Call your servicer. More on that in our guide to parent PLUS loan repayment.
What interest does to you during grace
If your loans are subsidized, relax. The government covers the interest for those six months.
Unsubsidized loans are a different story. Interest keeps adding up the whole time, and unpaid interest can be capitalized, which means it’s added to your balance and starts earning interest of its own.
Example: one $5,500 unsubsidized loan at 6.52%
- Interest per day
- About $0.98
- Interest per 30 days
- About $29.47
- Interest over the 6-month grace period
- About $178.81
How we got it: 6.52% is the fixed rate on undergraduate Direct Loans first disbursed July 1, 2026 to June 30, 2027. $5,500 times 6.52%, divided by 365, is about 98 cents a day. Over 182 days that’s about $178.81. We used simple daily interest on one loan and left out the interest that already built up while you were in school.
So is $30 a month worth paying while you don’t have to? If you can swing it, yes. You’re keeping that interest from getting folded into your balance, and you’re getting used to a loan payment before the real one starts.
What to do before your grace period ends
- Find your servicer. Log in to StudentAid.gov, go to My Aid and select “View loan servicer details.” Your servicer sends your first due date during grace, so make sure it has your current address. Our guide to student loan servicers walks through it.
- List every loan. Write down the type, balance and interest rate for each one, so you know which ones cost the most.
- Pick a repayment plan. Don’t let the default plan pick for you (more on that below). Compare your options in our guide to repayment plans, and if money’s tight, run your numbers in the RAP calculator.
- Pay the interest on unsubsidized loans if you can. Even interest-only payments keep your balance from growing.
- Turn on autopay. On Direct Loans originated after July 1, 2012, autopay cuts your rate by 1% through June 30, 2028, as long as you enroll by December 31, 2026. Here’s how to set up autopay.
- Build the payment into your budget. Put the due date on your calendar a few weeks early. First payments are the easiest ones to miss.
What happens when the grace period ends
Your first payment comes due. If you never picked a plan, the government picks for you: loans first disbursed on or after July 1, 2026 go to the Tiered Standard plan, and loans made before that go to the 10-year Standard plan.
One rule catches people off guard. If you have even one Direct Loan first disbursed on or after July 1, 2026, all your eligible Direct Loans, older ones included, have to be repaid on RAP or Tiered Standard.
Can’t afford the payment? Don’t just skip it. RAP bases your payment on your income and can go as low as $10 a month, and deferment or forbearance can pause things if you really need it. Missed payments add up fast, and our guide on student loan default shows where that road ends and how to turn around.
Special cases
Called to active duty
If you’re in a reserve component of the Armed Forces and you’re called to active duty for more than 30 days, that time doesn’t eat your grace period. It’s excluded, along with the time you need to get back into school, for up to 3 years. When it ends, you get a full six-month grace period.
Going back to school
If you go back at least half time, your loans usually go into an in-school deferment. The grace period itself is a one-time thing for each loan, though. Once you’ve used up all six months, you don’t get a fresh grace period after your next program.
Consolidating during grace
Repayment on a Direct Consolidation Loan starts within 60 days after it’s paid out, so consolidating early can cut your grace period short. You can ask to delay the consolidation until the end of grace. Also know that a consolidation loan made on or after July 1, 2026 can only use RAP or Tiered Standard. Our consolidation guide covers the rest.
Public Service Loan Forgiveness
Grace months can’t count as qualifying payments for PSLF. Your count starts with your first payment on a qualifying plan.
Got extra money? Here’s where it goes
Put anything above the minimum toward the loan with the highest interest rate first. That saves you the most. Some people knock out the smallest balance first for the quick win instead, which feels great and costs a bit more. The student loan payoff calculator shows the difference on your own loans.
Need more room in the budget? These ways to make extra money for your student loans are a good place to start.
Don’t forget the tax break
Once you start paying, the interest may be deductible. You can deduct the lesser of $2,500 or the interest you actually paid, and you don’t have to itemize. It phases out at higher incomes. Your servicer sends a Form 1098-E if you paid $600 or more in interest during the year.
Six months for Direct Subsidized and Unsubsidized Loans, starting when you graduate, leave school or drop below half-time enrollment. Perkins Loans get nine months. PLUS loans have no grace period, though grad PLUS borrowers get a six-month deferment after school and parents can request one. Private lenders set their own.
On Direct Subsidized Loans, no, because the government pays it. On unsubsidized and PLUS loans, yes, and unpaid interest can be added to your balance. A $5,500 unsubsidized loan at 6.52% builds about $179 of interest over six months.
You don’t have to, but paying the interest on unsubsidized loans keeps it from being added to your balance. Even small payments help, and they get you used to the bill before it’s required.
You’re placed in one. Loans first disbursed on or after July 1, 2026 go to the Tiered Standard plan, and older loans go to the 10-year Standard plan. You can change plans by contacting your servicer or applying on StudentAid.gov.
No. Months in a grace period can’t be qualifying payments for Public Service Loan Forgiveness.
Sources (11)
We use primary sources: Federal Student Aid, the U.S. Department of Education, federal regulations and the IRS.
- Federal Student Aid. Subsidized and Unsubsidized Loans. studentaid.gov. Accessed October 22, 2026.
- Federal Student Aid. Grad PLUS Loans. studentaid.gov. Accessed October 22, 2026.
- Federal Student Aid. Parent PLUS Loans. studentaid.gov. Accessed October 22, 2026.
- Federal Student Aid. Perkins Loans. studentaid.gov. Accessed October 22, 2026.
- Federal Student Aid. Repayment Plans. studentaid.gov. Accessed October 22, 2026.
- Federal Student Aid. Big Updates. studentaid.gov. Accessed October 22, 2026.
- Federal Student Aid. Loan Consolidation. studentaid.gov. Accessed October 22, 2026.
- Federal Student Aid. Public Service Loan Forgiveness. studentaid.gov. Accessed October 22, 2026.
- U.S. Department of Education. U.S. Department of Education Extends Enrollment Period for Student Loan Interest Rate Reduction. ed.gov. Accessed October 22, 2026.
- Electronic Code of Federal Regulations. 34 CFR 685.207: Obligation to repay. ecfr.gov. Accessed October 22, 2026.
- Internal Revenue Service. Topic no. 456, Student loan interest deduction. irs.gov. Accessed October 22, 2026.
