What exactly
is the Grace Period?

For Federally guaranteed loans, this is the period between the time a borrower leaves school (through graduation or dropout) or drops below half-time study, and the time that the borrower is obligated to begin repaying his or her loan(s).

The Grace Period is usually six (6) months on most Federally guaranteed loans. However, the grace period for other Federal loans can vary by loan:

The Benefits
of Grace Period Consolidation

A Grace Period provides a student with the opportunity to find active employment after leaving or graduating from college without the burden of trying to pay back their student loans.

To this end, the Federal government calculates in-repayment interest rates at the 91-Day T-bill rate + 2.3%. For in-school, grace period or deferment loans, the interest rate is based on the 91-Day T-Bill plus 1.7%, 0.6 percentage points lower.

Over the life of a consolidated loan, a 0.6% can add up to alot of dollars going back into your pocket.

Don't Wait until Graduation
or Leaving School to Apply!

Apply for the consolidation loan at any time during the grace period and qualify for the lower in-school interest rate. Because the loan consolidation process takes about 6 to 8 weeks, however, apply as soon as you enter your grace period.

To maximize your in-school deferment benefits; i.e., postpone repayment of your consolidated loan until your grace period ends, be sure to indicate your grace period end date on your application.

Let SBS Loan Consultants help you make the most of grace period loans if you're eligible. Call us at 1-866-652-2121 or contact us today.