Can My Federal Student Loan Grace Period Change?

A student graduating from college and entering his loan grace period

Flickr user COD Newsroom

The standard federal student loan grace period lasts six-months after a student graduates from college. After that half-year, it’s time to start repaying the loan with interest. But that’s just the standard, what can cause a grace period to change?

Active Military Duty

No matter the military branch, if you’re called to active duty you will get a full six-month grace period when you get back from your service. (As long as you were called to action more than 30 days before your grace period would have expired).

Returning to School

Thinking about grad school? Or did you drop out but re-enroll? If you start up classes again, before your grace period runs out, it can be put on hold until you graduate—or drop below half time status. Fortunately, when you’re grace period starts up again, you get the full six months.

Federal Student Loan Consolidation

Consolidating your federal student loans can be a great way to simplify and manage your payments, but there is a catch—if you consolidate during your grace period, you forfeit the delay and start paying once your direct consolidation loan is disbursed. Make sure you’re able to financially handle that payment before you decide to consolidate.

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