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LeoGlossary: Grace Period (Student Loan)

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During a student loan’s grace period, the borrower isn’t responsible for making payments. However, interest usually accrues (except on direct subsidized loans) during this time. The student can choose to make payments during the grace period.

Loan grace periods typically take place after graduation, drop below half-time enrollment or leave school. For example, some federal student loan borrowers have a six-month grace period after they graduate.

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