Federal Loan Exit Counseling is required by the Federal regulation for all students that withdraw, graduate, or drop below half-time enrollment. It helps student’s understand their rights and responsibilities as a student loan borrower, and provides helpful tips to help students manage their loan repayment. Complete exit counseling at studentaid.gov.

The Grace Period of a federal student loan is six months. This means that repayment will not begin until six months after graduation. One exception is the Federal Perkins Loan, which has a nine month grace period.  During the grace period, it is important to contact your federal loan servicer to choose the payment plan that fits your needs best.

• Direct Subsidized Loans and Direct Unsubsidized Loans have a six-month grace period before payments are due.
• Parent PLUS loans do not have a grace period.
• Grad PLUS loan as a graduate or professional student, automatically get a six-month deferment after you graduate, leave school, or drop below half-time enrollment.

The Loan Lender is the organization that initially made the loan. For Federal student loans, the loan lender is the U.S. Department of Education.

The Loan Servicer is the ‘middleman’. They will collect payments, respond to customer service inquiries, and perform other administrative tasks associated with maintaining a federal loan. The loan servicer agency can be viewed by students by logging into the National Student Loan Database (NSLDS) or studentaid.gov.

If a student does not contact their loan servicer prior to the end of the grace period, they will automatically be enrolled in the 10-year Standard Repayment Plan. However, there are a variety of other plans that may suit the student’s individual financial status better, including several Income-Based repayment plan options.