All Title IV HEA Federal Student Loans will be reported to the National Student Loan Data System (NSLDS) and will be accessible by guarantee agencies, lenders and schools determined to be authorized users.
To review your financial aid history and to better understand your federal student loan indebtedness, log in to www.nslds.ed.gov You will need your name, date of birth, Social Security number and FAFSA PIN to access your confidential record.
If you have borrowed from one or more of the non-federal private financing programs, more information about those loans can be obtained from your lender or on your credit report at: www.annualcreditreport.com
After you graduate, leave school or drop below half-time enrollment, you are entitled to a grace period. During this time—which is typically six or nine months, depending on the type of student loan you receive—you are not expected to make payments. For most loans the grace period may not be renewed once fully used.
The interest on subsidized loans is paid by the federal government during your grace period. You are responsible, however, for all the interest on unsubsidized loans. The unpaid interest is capitalized—added to the loan principal—at the time of repayment. Monthly payments begin the day after your grace period ends; at that point, your first payment is due within 60 days.
Below are the grace periods for the following loans:
| Loan Type | Grace Period |
| Federal Stafford Loans | 6 months, one-time |
| Federal Graduate PLUS Loans (before 7/1/2008) | N/A |
| Federal Graduate PLUS Loans (after 7/1/2008) | 6 months, one-time |
| Federal Perkins Loans | 9 months, 6 months-renewable after each deferment |
| Federal Consolidation Loan | N/A |
HPSL, LDS, PCL, Institutional Loans Institutional Loans |
12 months, one-time
Varies by loan |
What is Capitalization?
Capitalization is the unpaid interest accrued on the loan during the school year or during a deferment or forbearance period. When the loan enters repayment status, the interest is then added to the principal amount.
If you opted out of paying the capitalized interest while in school, your monthly loan payments can be considerably higher.
Private loans may be capitalized more frequently.
Example:Jack paid the interest—totaling $1,485—while he was still in school. Kate made no payments, so the total accrued interest of $1,485 was capitalized at the time repayment began. By avoiding capitalization, Jack saved $745 on the total amount of his repayment.
Case |
Total Principal at Repayment |
Monthly Payment |
Number of Payments |
Interest Paid |
Total Amount Repaid |
Jack |
$4,000 |
$50 |
107 |
$1,345 |
$6,830* |
Kate |
$5,485 |
$63 |
120 |
$2,090 |
$7,575 |
Savings |
$745 |
*Includes original $1,485 paid during school