Texas Tech University

Grace Period

When you leave school, or drop below half-time status, the student loans you have borrowed will enter a grace period. This is a period of time where no payments are required.

There are no pre-payment penalties on any of the Federal Loans. This means borrowers may begin early if they choose and pay the loan in full early with no penalties.

Interest does not accrue on most loans during school or the grace period.

The Unsubsidized Direct Loan and PLUS Loan are the exception to this, and interest does accrue during this time.

Making payments during a grace period is a good way to reduce the overall loan balance since payments are applied directly toward the principal balance for any subsidized loans (Subsidized Direct, Perkins)

Loan Type Grace Period (Length of time before repayment begins)
Federal Direct Student (Subsidized and Unsubsidized) Loans 6 months

Federal Parent
PLUS Loans

No automatic grace period.*

Federal Graduate
PLUS Loans

6 months
College Access Loans 6 months
Texas B-On-Time Loan 6 months

*Your loan holder may agree to postpone payments while the student is in school at your request, but this is at the loan holder's discretion.

Tips & Resources

See details of Repaying your Loans.

Contact your lender or the Texas Tech Default Aversion Manager for questions about loan terms, grace periods, and repayment options.