When Does Student Loan Interest Start Again?

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When Does Student Loan Interest Start Again?

Student loans can be a great way to finance your education and invest in your future. However, it’s important to understand the terms and conditions of your loan, including when the interest starts accruing. Many students wonder, “When does student loan interest start again?” The answer to this question depends on the type of loan you have and your specific circumstances. In general, student loan interest typically starts accruing as soon as the funds are disbursed to your school. This means that even while you’re still in school, interest is accruing on your loan balance. However, there are some exceptions to this rule, such as certain subsidized loans that do not accrue interest while you’re in school. It’s important to carefully review your loan agreement and speak with your loan servicer to fully understand when your interest will start accruing.

Understanding the Grace Period



A grace period is a specified amount of time given to a borrower before they are required to make a payment on a loan or credit card. This period is usually provided as a courtesy to allow borrowers some flexibility in managing their finances. During the grace period, no interest or late fees are typically charged, and the borrower is not considered delinquent on their payments.

The length of the grace period can vary depending on the type of loan or credit card. For example, credit cards often have a grace period of around 21 to 25 days, while student loans may have a grace period of six months after graduation. It is important for borrowers to understand the terms of their specific loan or credit card agreement to know how long their grace period lasts.

During the grace period, it is still important for borrowers to be mindful of their financial responsibilities. While no interest or late fees may be charged during this time, any unpaid balance will still accrue interest once the grace period ends. Therefore, it is wise for borrowers to make at least the minimum payment during the grace period to avoid additional interest charges.

Overall, understanding the grace period is crucial for borrowers to effectively manage their finances. By taking advantage of this period, borrowers can avoid unnecessary fees and interest charges, allowing them to better plan and budget for their loan or credit card payments.

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✿ Learn More: Student Loan Basics Answers.

Dave Pennells

By Dave Pennells

Dave Pennells, MS, has contributed his expertise as a career consultant and training specialist across various fields for over 15 years. At City University of Seattle, he offers personal career counseling and conducts workshops focused on practical job search techniques, resume creation, and interview skills. With a Master of Science in Counseling, Pennells specializes in career consulting, conducting career assessments, guiding career transitions, and providing outplacement services. Her professional experience spans multiple sectors, including banking, retail, airlines, non-profit organizations, and the aerospace industry. Additionally, since 2001, he has been actively involved with the Career Development Association of Australia.