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The months right after college are when student loans quietly switch on. Federal loans give you about six months before the first payment — a window that's easy to ignore and costly to waste. Here's how to use it well.
You get about 6 months before the first payment
Most federal student loans give you a six-month grace period after you graduate, leave school, or drop below half-time enrollment. Your first payment is due at the end of it — not the day you walk across the stage.
Interest may still build during grace
On unsubsidized loans (and PLUS), interest keeps accruing during the grace period and gets added to your balance when repayment starts. On subsidized loans, the government generally covers interest during grace. Paying even a little during grace can save money on unsubsidized loans.
You'll be assigned a loan servicer
A servicer — the company that handles your billing — manages your loans. Find out who yours is at StudentAid.gov, create an account, and confirm they have your current contact info before grace ends.
Grace can be used up or lost
You generally get the grace period once per loan. If you re-enroll at least half-time and then leave again, some loans restore grace and some don't. Consolidating during grace can also end it early — check before you act.
Subsidized vs. unsubsidized in grace
On subsidized loans, the government usually pays interest during grace — so the balance holds steady. On unsubsidized loans, interest accrues and capitalizes when repayment starts. If you have unsubsidized loans, even small payments during grace pay off.
Find your servicer and total balance now
Log into StudentAid.gov to see every federal loan, the balance, the interest rate, and your assigned servicer. You can't plan repayment for loans you haven't added up.
Choose a repayment plan before month six
If you do nothing, you're placed on the Standard 10-year plan, which has the highest monthly payment. An income-driven plan can lower it dramatically — sometimes to $0 — and you can pick before the first bill.
Consider paying interest during grace
On unsubsidized loans, making small interest payments during the grace period keeps the interest from being added to your principal — so you don't pay interest on interest later.
Set up autopay for the rate discount
Most federal servicers knock 0.25% off your interest rate for enrolling in automatic payments — and it guarantees you never accidentally miss the first payment and slide toward delinquency.
The most common mistake is treating grace as "I don't have to think about loans yet." Then month six arrives, a bill appears, and an unprepared borrower misses it and starts sliding toward delinquency. Pick your plan and set up autopay before the window closes — future you will be glad you did.
Get ready: compare repayment plans, know how to pause if needed, and avoid default.