You will receive a grace period (generally six months) before you must make the first payment of your Federal Direct Loan. The grace period begins the day after you’re no longer enrolled at least half time at an eligible school.
Your grace period doesn’t include any period up to three years during which you’re called or ordered to active duty for more than 30 days from a reserve component of the Armed Forces of the United States, including the period necessary for you to resume enrollment at the next available regular enrollment period.
Commencement of Repayment for PLUS loans
Unlike a Direct student loan, a PLUS loan does not have an automatic in-school deferment and grace period. However, a PLUS loan does offer some flexibility when it comes to beginning repayment. At the borrower’s option, the first payment of a PLUS loan is due:
- Within 60 days after the final loan disbursement is sent to the school; or
- For a graduate or professional student borrower, when he or she is no longer enrolled in school at least half time (i.e., graduates, withdraws, or reduces coursework); or
- For a parent borrower, the day after six months after his or her dependent student is no longer enrolled at least half time.
If a borrower decides to have his or her payments temporarily postponed, the borrower must pay the interest on the loan or may allow it to be capitalized (added to the principal).