financing your dream
Comparing Student Loan Features
It pays to shop around before you apply for a public or private student loan. Check the interest rate for each loan you’re considering and whether it’s subsidized or unsubsidized. Also take a look at the grace period. This is the time you have free before you must start repaying what you owe. When it comes to student loan grace periods, which of these is true?
- All student loans have the same repayment grace period.
- Six months is the time period when most student loans come due.
- The date repayment begins varies from loan-to-loan.
“C” is correct. Different loans involve different grace periods. The first payment on Stafford loans is usually due six months after you graduate or fall below half-time enrollment. Perkins loans have a nine-month grace period. It’s important to know when each loan will fall due. Otherwise you may miss or make a late payment, and this will affect your credit score.