For most federal student loans, payments start six months after you graduate, leave school, or drop below half-time enrollment. That six-month window is called the grace period, and it applies to Direct Subsidized and Direct Unsubsidized Loans, which cover the majority of borrowers.1eCFR. 34 CFR 685.207 – Obligation to Repay Repayment begins the day after the grace period ends. If you have other kinds of student debt, the timeline shifts, and a few decisions you make during those six months change how much you ultimately owe.
What Starts the Six-Month Clock
The grace period begins when you stop being enrolled at least half-time at an eligible school. Three events commonly trigger it:2Federal Student Aid. Student Loan Repayment
- Graduating from your degree or certificate program.
- Withdrawing from school entirely.
- Dropping below half-time enrollment, even if you’re still taking a class or two.
Your school reports the enrollment change to the National Student Loan Data System, and once your status updates there, your loan servicer is notified to start the countdown.3FSA Knowledge Center. NSLDS Enrollment Reporting Guide (February 2026) Schools typically update the data within 30 to 60 days, so don’t assume the clock hasn’t started just because you haven’t heard from your servicer yet. If you graduate in May, your first payment is generally due in December.
How the Timing Changes by Loan Type
The six-month figure is the standard for Direct Loans, but not every student loan follows it.
Perkins Loans
Federal Perkins Loans come with a nine-month grace period rather than six.4eCFR. 34 CFR 674.31 – Promissory Note The Perkins program stopped issuing new loans after September 30, 2017, so this only matters if you borrowed before that date. Existing balances still get the nine months.
PLUS Loans
PLUS loans technically have no grace period. Repayment begins as soon as the loan is fully disbursed, which usually happens while the student is still in school.5eCFR. 34 CFR 685.207 – Obligation to Repay What that means in practice depends on who borrowed:
- Graduate and professional PLUS borrowers get an automatic deferment while enrolled at least half-time and for six months after leaving school, which produces roughly the same timeline as a standard grace period.6Federal Student Aid. Direct PLUS Loans for Graduate or Professional Students
- Parent PLUS borrowers can request that same deferment, but it isn’t automatic. Without the request, payments are due immediately.7Federal Student Aid. Direct PLUS Loan Basics for Parents
Private Loans
Private lenders set their own rules. Some offer a six-month grace period that mirrors the federal timeline; others require payments while you’re still enrolled. The terms are in your promissory note and can’t be renegotiated after signing. If you carry both federal and private debt, check the private paperwork separately so an earlier due date doesn’t catch you off guard.
Does Interest Build During the Grace Period?
Whether interest accrues in those six months depends on the loan, and the difference compounds over years.
- On Direct Subsidized Loans, the federal government pays the interest during the grace period. You won’t owe more than you borrowed when repayment begins.2Federal Student Aid. Student Loan Repayment
- On Direct Unsubsidized Loans, interest accrues from the day of disbursement, grace period included. That accrued interest is added to your balance, which can raise your monthly payment or extend how long you’re paying.2Federal Student Aid. Student Loan Repayment
- On PLUS Loans, interest accrues during all deferment periods, including the in-school and post-enrollment deferments above. Unpaid interest capitalizes when deferment ends.7Federal Student Aid. Direct PLUS Loan Basics for Parents
You’re allowed to make voluntary payments during the grace period on any loan type. Even small interest-only payments on unsubsidized and PLUS loans keep the balance from growing before your first full paycheck.
Things That Change or Reset the Start Date
Going Back to School
If you re-enroll at least half-time before your grace period ends, you get a fresh six-month grace period when you eventually leave again.2Federal Student Aid. Student Loan Repayment The grace period isn’t a one-time benefit that permanently expires the first time it starts. Once you’ve entered repayment, though, going back to school triggers an in-school deferment instead, which is a separate status.
Consolidating Your Loans
Consolidating federal loans into a Direct Consolidation Loan during the grace period wipes out whatever time you have left. Repayment on the new consolidation loan begins after processing unless you specifically ask your servicer to hold off until closer to the original grace period’s end date.2Federal Student Aid. Student Loan Repayment The reason to consolidate is usually to unlock a repayment plan or forgiveness program, not to accelerate the first bill.
Military Service
Borrowers called to active duty for more than 30 days before the grace period ends receive the full six months when they return.2Federal Student Aid. Student Loan Repayment A military service deferment separately covers the active-duty period plus 180 days after completion, and a post-active-duty student deferment can extend protection up to 13 months after service ends.8Federal Student Aid. Military Service and Post-Active Duty Student Deferment Request
What to Do Before Your First Payment Arrives
Complete Exit Counseling
Federal law requires every Direct Loan borrower and graduate PLUS borrower to complete exit counseling shortly before leaving school.9eCFR. 34 CFR 685.304 – Counseling Borrowers If you withdraw without notice or skip the session, your school has 30 days to send you the materials electronically or by mail. The counseling covers your total balance, estimated monthly payments under different plans, how to avoid default, and forgiveness options like Public Service Loan Forgiveness and Teacher Loan Forgiveness.10Federal Student Aid. Direct Loan Exit Counseling Guide You’ll also update your contact information and provide references your servicer can use to reach you.
Confirm Your Servicer and Pick a Plan
Find out who your loan servicer is by logging in to StudentAid.gov with your FSA ID and checking under “My Loan Servicer.” All communication about payments and plan changes runs through that company. Your servicer contacts you roughly 30 to 60 days before your first payment is due with a billing notice showing the amount, due date, and interest rate.11Edfinancial Services. Understanding Your Monthly Billing Statement
If you don’t actively choose a plan, you’re placed on the Standard Repayment Plan by default: fixed payments of at least $50 for up to 10 years.12Federal Student Aid. Standard Repayment Plan Graduated Repayment starts lower and steps up every two years over 10 years, at a higher total interest cost. Income-driven repayment (IDR) sets the payment based on your income and family size and stretches the term to 20 or 25 years, with any remaining balance forgiven at the end.13Federal Student Aid. Apply for or Manage Your Income-Driven Repayment Plan
One current wrinkle: as of early 2026, the SAVE Plan has been effectively shut down following a proposed settlement between the Department of Education and the state of Missouri. Borrowers who were enrolled in SAVE are in forbearance, during which interest accrues and no payments count toward forgiveness. The IDR plans currently accepting applications are Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR). If you’re working toward Public Service Loan Forgiveness, moving onto one of these and starting payments is the only way to make progress on the 120 qualifying payments.14Federal Student Aid. IDR Plan Court Actions: Impact on Borrowers
Set Up Auto-Debit
Most servicers let you enroll in automatic bank withdrawals through their online portal. Auto-debit earns a 0.25% reduction on your interest rate, which stays in effect while you remain enrolled and your loans are in active repayment.15Federal Student Aid. Auto Pay Interest Rate Reduction Beyond the rate cut, it removes the risk of a missed payment during the transition from grace period to repayment.
What Happens If You Miss the Start of Repayment
Missing that first payment is one of the most common ways borrowers get into trouble, and the consequences ramp up on a fixed schedule:
- Your account becomes delinquent the day after a missed payment.16Federal Student Aid. Student Loan Delinquency and Default
- At 90 days past due, your servicer reports the delinquency to the three national credit bureaus, damaging your credit score.16Federal Student Aid. Student Loan Delinquency and Default
- At 270 days past due, a Direct Loan goes into default.16Federal Student Aid. Student Loan Delinquency and Default
Default opens the door to wage garnishment, seizure of your federal tax refund (including refundable credits like the earned income tax credit), and loss of eligibility for further federal financial aid. Perkins Loans can be declared in default sooner by the school that holds them. If the standard payment is going to be a stretch, switching to an income-driven plan or requesting a deferment or forbearance before you miss a payment is much easier than climbing out of default later.