If you have a subsidized federal loan

If you have a subsidized federal loan, the government will be paying your interest for you while you are in college. If all of your loans fall into that category, then you don’t need to worry about paying off your student loans until you finish college (it’s still wise to spend some time learning about the process of repayment, however).

If your loans aren’t all subsidized, then all the interest accrued on any unsubsidized loans while you were in college will be “capitalized” (added to your principal) when your payments become due. This means that you will be paying interest on a higher amount after college. We’ll talk more about this in a minute, but for now, know that if your student loan interest is capitalized, you will end up paying more in the long run.

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Being called to active military duty

Being called to active military duty: Should you be called to active duty military service for a period of time greater than 30 days before the end of your original grace period, your grace period will reset to the full six months when you return home.

Returning to school: If you return to school (more than half-time) before the end of your grace period, you will receive the full six-month grace period when you graduate or drop below half-time enrollment

Consolidating your loans: If you choose to consolidate your loans (more on that below), then your grace period is immediately forfeited. You will begin the repayment of your new loan after it is disbursed. Your first payment will typically be due about two months after you consolidate.

A grace period is the period of time given to you by

A grace period is the period of time given to you byu by the federal government between your graduation and when your first payment on your student loans is due. This time period (typically six months) is designed to give you time to get a job, become financially stable, and select a repayment plan (note: applying for an Income-Driven Repayment Plan will not end your grace period early). However, it is important to note that unsubsidized loans will still be accruing interest during this time.

If you haven’t yet been assigned a servicer,

If you haven’t yet been assigned a servicer, one will be assigned to you after the first “disbursement” (when the money is actually paid to the school or you) of your loan. Expect to receive a welcome letter in the mail. If you can’t remember who your loan servicer is, you can log-in to My Federal Student Aid to find out.

Contact your loan servicer if you have any loan related questions, or if you are unable to make a loan payment. You should also contact your servicer if you experience any major life changes such as:

A School transfer
Quitting school  (including dropping below “half-time” enrollment)
A Name, address, or phone number change
Graduation

Your loan servicer is the third-party organization assigned

Your loan servicer is the third-party organization assigned by the federal government to handle the “servicing” of your student loans. Basically, your loan servicer is the one-stop shop for all your federal student loan needs.

Loan Servicers provide the following services, they:

• Send out statements
• Receive payments
• Facilitate repayment plans
• Resolve billing errors
• Answer general questions