{"id":1499,"date":"2017-11-29T13:39:48","date_gmt":"2017-11-29T20:39:48","guid":{"rendered":"http:\/\/www.petersons.com\/blog\/uncategorized\/paying-back-your-graduate-loans\/"},"modified":"2020-04-28T11:58:52","modified_gmt":"2020-04-28T17:58:52","slug":"paying-back-your-graduate-loans","status":"publish","type":"post","link":"https:\/\/www.petersons.com\/blog\/paying-back-your-graduate-loans\/","title":{"rendered":"Paying Back Your Graduate Loans"},"content":{"rendered":"

Grad school is a commitment\u2014and so are the loans you take out to pay for it. While scholarships and grants for graduate school are gifts and do not have to be repaid, graduate loans are quite different. For most students, graduate school loans are considered a necessary evil. Your graduate program is looked upon as an investment in your future, and it helps you achieve the means to repay the loans later\u2014after you find success in the working world. With that in mind, most lenders offer flexible repayment choices that can help you pay off your loans without placing you in financial jeopardy.<\/p>\n

Repayment and postponement options are similar among many of the major lenders in the education industry. Of course, each lender is its own business, so it\u2019s up to you to know the terms and conditions of each of your loans. Most will provide you with the following features:<\/p>\n

Most graduate school loans come with a “grace period”<\/h2>\n

Most educational loans allot a grace period to you after you graduate or drop below half-time student status. During your grace period, you don\u2019t need to start repayment on your loans. This buys you some time to make sure you have the means to pay the loan bills when they come due! In the case of Stafford loans, for example, the grace period is typically six months.<\/p>\n

Grad school loan deferment<\/h2>\n

If you\u2019re having difficulty making your loan payments, you may request a deferment, which is a temporary suspension of your required payments. Deferment isn\u2019t automatic; you don’t get it just by asking for it. You need to meet certain qualifications, and you should keep making your payments until you know if you\u2019ve been approved or not. Deferment is also not indefinite. Deferment will be time-limited and cannot be requested over and over again. If you\u2019re not sure if you\u2019re eligible for deferment, you\u2019ll need to check with your lender to find out about eligibility requirements and limitations. Depending on the type of loan you have<\/a> and when the money was borrowed, your interest rate may or may not be “locked.”<\/p>\n

Grad school loan forbearance<\/h2>\n

Loan forbearance will let you reduce or temporarily stop your payments if you\u2019re having difficulty making them. However, while you\u2019re not making payments, interest still accrues<\/a> and the balance of your loan mounts up. Forbearance is granted in intervals that can last up to 12-months at a time and for up to a total of three years. Forbearance can extend your time for making payments or be for an agreed upon period of time during which you make smaller payments.<\/p>\n

Whether or not your graduate loans qualify for forbearance is up to your lender, but if you are experiencing any of the following situations, the lender must grant forbearance to you as long as you make your request in writing and submit any required documentation:<\/p>\n