By Tom Anderson, CommonBond content manager
If you graduated this spring, you will likely have to begin making regular payments on your student loans soon.
Most student loans offer a "grace period" where you don't have to pay anything on your loans for six months. The grace period is designed to give you some breathing room to find a job before you start repayment. However, once that period is over, you will have to start making regular payments. But there are a few exceptions to extend your period:
- Back to school: If you reenroll in school at least half-time before the end of your grace period, you usually will receive the full six-month grace period when you stop attending school or drop below half-time enrollment.
For many student loans, interest is still accruing during your grace period.
Interest accruing during the grace period means that it is over, you will have a larger loan balance than before the period. Typically, lenders, including CommonBond, will allow you to make payments during your grace period if you want to help reduce the added cost of that extra interest.
Considering refinancing your student loans to a lower interest rate? Some lenders, including CommonBond, will allow you to refinance your student loan to a lower interest rate during the grace period, while still honoring the period by not requiring you make a payment until it is over.
So what should you do when your grace period expires?
First, gather all the basics on all your student loans: How many of your student loans will enter repayment and when, your account numbers, your current monthly payment schedule and your loan servicer's contact information. You'll need this information to start making payments to your current lender.
Second, answer these five simple questions to pick the right refinancing and consolidation student loan for you.
Still have questions? Don't be shy: contact our incredible Care team at care@commonbond.co.
Remember, the end of your grace period doesn't mean you can't start shedding your student debt gracefully.