Your Student Loan Lifecycle

Your Student Loan Lifecycle

From the time you are taking out a student loan to the time you pay it again, the loan goes by a “life cycle,” with a number of phases that every require totally different motion objects from you. Depending in your loan sort, there could also be instances when no cost is due, and different instances when you could take particular actions to offer data to your loan servicer (e.g. Nelnet), or to make funds towards your loan.

Those who’ve Federal Stafford Loans usually undergo three phases: in class, in grace, and in reimbursement.

Private loans comply with an analogous life cycle as a federal student loan, nevertheless, phrases and situations differ relying on the lender. Grace intervals, rates of interest, and cost schedules ought to be verified for every of your non-public student loans.

Borrowers of different student loan varieties corresponding to Parent PLUS loans or GradPLUS loans for graduate {and professional} students have barely totally different experiences. In any case, your college will work straight with Nelnet (and your different loan servicers, if relevant) to make sure we all know which stage you’re in. Your servicer will talk with you based mostly in your wants at the moment. See under for an summary of the phases of the student loan life cycle.

Federal Stafford Loan Stages

In School

2-4 Years

While in class, your research ought to be your high precedence. However, if you are not required to make funds when taking courses not less than half time, you may have the choice to pay down your student loans, which can prevent cash in the long term. If you may have loans serviced by Nelnet you’ll be able to log in to Nelnet.com any time to study extra about your loan steadiness and keep financially match with our printable tip sheets.

Explore the In School section of the Student Loan Life Cycle

In Grace

6 Months

After leaving college, you will have six months earlier than you’re required to start making funds—that is referred to as a grace interval for students with Stafford loans, and a deferment for graduate or skilled students with GradPLUS loans. During this time, you probably have loans serviced by Nelnet it is best to create a Nelnet.com account and discover which cost plan works greatest for you. While you aren’t required to make funds throughout grace and deferment, you may have the choice to pay down your student loans, together with paying the curiosity on any unsubsidized loans, which can prevent cash in the long term.

Explore the In Grace section of the Student Loan Life Cycle

Federal GradPLUS Loans (graduate/skilled students)

While you’re in class, you may have the choice to pay down your student loans, together with paying the curiosity on any unsubsidized loans, which can prevent cash in the long term. Of course, you are all the time welcome to ask questions and study extra—you probably have loans serviced by Nelnet simply log in at Nelnet.com to see the small print of your current student loan with Nelnet or to talk with us.

Your funds for this loan are postponed till six months after you graduate or drop under half-time standing as a student. For your GradPLUS loan, this postponement is known as a six-month deferment. If you do want to make funds on this or any of your student loans if you are nonetheless in class, particularly if you would like to avoid wasting curiosity in the long term, you’ll be able to.

We’ll ship your month-to-month student loan billing assertion round three weeks earlier than your cost is due. When you begin making funds, your loan is taken into account to be in reimbursement.

Federal PLUS Loans (mother and father)

Parent PLUS loans are usually cut up into teams of funds and despatched to the varsity (disbursed) to cowl prices all through the tutorial yr (for instance, half throughout fall semester and half throughout spring semester). At the earliest, your first cost on this loan could be due 60 days after the varsity receives the final set of funds (within the instance above, 60 days after the spring funds have been despatched to the varsity). If you may have loans serviced by Nelnet you’ll be able to all the time confirm your cost due date and different loan particulars by logging in at Nelnet.com.

Although Federal PLUS Loans do not have a grace interval, you’ll be able to postpone funds when you or your student is in class, however the loan will proceed to accrue curiosity. If you choose for in-school deferment, you’ll be able to pay down the curiosity of the loan. If the loan is deferred, curiosity will accrue throughout the deferment. If you have not but pursued this feature, you’ll be able to request this postponement (referred to as a Parent PLUS Borrower Deferment) straight from us by calling 888.486.4722.

We’ll ship your month-to-month student loan billing assertion round three weeks earlier than your cost is due. When you begin making funds, your loan is taken into account to be in reimbursement. If you may have loans serviced by Nelnet please log in to Nelnet.com to view when funds are due for these and every other sort of federal student loans which might be serviced by Nelnet.

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