What is the grace period for federal student loans?

The grace period for federal student loans is a designated time frame after graduation or dropping below half-time enrollment where borrowers are not required to make loan payments. For most federal student loans, including Direct Subsidized and Unsubsidized Loans, the grace period is six months. During this period, no interest accrues on Subsidized Loans, while interest continues to accumulate on Unsubsidized Loans. Parent PLUS Loans do not typically have a grace period, and repayment starts once the loan is fully disbursed. Grad PLUS Loans have a six-month grace period, similar to other federal student loans. It's essential for borrowers to use this time wisely, as preparing a repayment plan and understanding loan terms is crucial to avoid any financial difficulties once repayment begins.