Borrowers need to know this if interest rates on student loans rise again

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1. Borrowers in school

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2. Current graduates

Most graduates receive a so-called grace period after graduating from school before they have to start repaying their student loans. This period is usually six months, but in some cases nine months.

Interest on your subsidized student loans will not be collected until you have passed this window. Here, too, unsubsidized loans continue to increase.

Months during the pandemic-era pause count toward your grace period, Kantrowitz said.

3. Those who have difficulties

Those eligible for a hardship deferral include people who receive certain types of federal or state aid, as well as anyone who volunteers in the Peace Corps, Kantrowitz said.

In the event of a hardship case or a postponement of unemployment, there is generally no interest charged on subsidized loans for students. Unsubsidized loans increase interest rates.

The maximum period of time that you can claim in the event of unemployment or hardship is usually 3 yearsper type.

Other, less well-known deferrals include the Postponement of the graduate scholarshipThe Military service and deferment after active service and that Postponement of cancer treatment. You should ask your loan servicer whether your credit will continue to grow under these different options, as each case is different. Borrowers need to know this if interest rates on student loans rise again

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