Consolidating student loans after graudation
Parent PLUS borrowers may also defer repayment for six months after the student on whose behalf the loan was borrowed is no longer in school or if the parent is also a student, six months after the day that the parent is no longer in school.
When you are getting ready to leave college, your financial aid office will send you a notice that you are required to complete exit counseling for your federal (Perkins, Direct, and Grad PLUS) student loans.
“Capitalization” is when interest that accrued during the grace period or other deferment is added to the loan principal when repayment begins.
Making payments during a grace period is not required, but something to think about if you can afford it.
You will also learn about the serious consequences of not making your loan payments.
For many student loans, including federal loans, there is a grace period after you leave school or drop below a half-time status, in which you don’t have to begin repayment.
Failure to do so could mean that your college will place a hold on such documents as transcripts until the exit counseling has been completed.