When to start paying back student loans

By Carolyn Morris | Published on October 21, 2025

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Graduating from college or graduate school may feel like the accomplishment of a lifetime. But while your education may be coming to an end, your student loan repayment journey¹ is just beginning. These days, more and more students are looking at the end of their student loan payments as another milestone in their adult lives. But how do you start making progress toward that milestone? And when do you actually need to begin?

According to a recent College Board report, 51% of students who graduate with bachelor’s degrees now take on student debt to meet their education goals. If you are among that majority, you might be wondering: When do I have to pay student loans? Do repayments begin as soon as I graduate, or do I have some time to prepare? Here’s what you need to know to pay back your loans on time.

When do you have to start paying back student loans?

Your loan repayment start date will depend on the terms in your loan agreement. If you have just graduated, left school, or dropped below half-time enrollment, you’ll generally enter a grace period. That means you have six to nine months before you have to start making loan repayments. If you re-enter school, join the military, or face extenuating financial circumstances, you may also qualify for deferment or forbearance. (If you aren’t sure, call your student loan servicer to get the details on your repayment status.)

What are student loan grace periods?

A grace period is the time period after you end your full-time enrollment in college and before your student loan repayment begins. According to the U.S. Department of Education website, federal Direct loans and Stafford loans have a six-month grace period. PLUS loans — including Parent PLUS loans and Graduate PLUS loans — do not have a grace period. (However, if you have Parent PLUS loans, you can apply for deferment while your child is in school.)

Grace periods for private student loans may vary. Earnest, for example, offers a nine-month grace period² — three months longer than most other loans. If you have questions about your lender’s grace period policy, reach out to them directly.

During your grace period, interest may continue to accrue unless otherwise noted in your loan terms. While you may not be required to make payments on your loan during this time, it may be a good idea to get a jumpstart on your loan payments before your grace period ends. This will help you avoid interest capitalization, which is when accrued interest is added to your principal balance. Keep in mind it’s important to consider your own financial situation and to choose a repayment plan that is right for you.

What is deferment?

Student loan deferment is a temporary postponement or reduction of loan payments. If you enlist in the US military or return to school to finish or earn a new degree, your current federal loans may go into deferment. You will not be required to make payments during that time. For subsidized federal loans, interest will not accrue during this period.

Some private lenders also offer deferment in case of financial emergencies. Get in touch with your servicer or lender for more information on their policies.

Understanding your student loan repayment schedule

When entering a repayment or grace period, federal student loan borrowers will be required to complete exit counseling. This is an online course through StudentAid.gov that will help borrowers understand each repayment option that applies to their loan. Private student loan borrowers are not generally required to complete exit counseling.

If you have already been through exit counseling and maybe want to re-evaluate the options for federal student loan repayment, check out the Repayment Plans page on the Federal Student Aid website. These plans range from 10 to 25-year repayment timelines, so there are lots of options.

If you think you might qualify for student loan forgiveness or cancellation, be careful to choose the right payment plan. Some federal forgiveness programs require you to first apply for a consolidation loan and then enroll in an income-driven repayment plan (IDR)* before you can start working toward forgiveness.

How do I make payments on my student loans each month?

When your bill or payment alert comes in each month, it’s your responsibility to submit that payment on time. If you move after finishing school, make sure to update your address with your servicer, or opt for electronic alerts or statements.

If you’re a federal loan borrower and haven’t made your first payment, you can sign into your account on the Student Aid website to find your servicer and get set up with their payment system. If you have any questions during the process, your school’s financial aid office is a great place to get help. You can also call your loan servicer’s helpline. Private student loan servicers often have their own payment platforms directly accessible from their websites.

If you can set up automatic payments and know you won’t have an overdrawn account by doing so, this could be a simple way to make sure you have paid your bill each month on time. Some servicers, like Earnest, even offer an interest rate discount for signing up for Auto Pay³.

4 Tips for making student loan repayment manageable

Now that you know when you need to start making payments, it is time to figure out how to make those payments manageable. Here are four steps to set yourself up for repayment success.

Understand your total monthly payment — and if you can afford it

While you might have picked a repayment option that seemed appealing at first, situations and budgets can change. If your monthly payment amount is not affordable with your current budget, first see if you can make it work by trimming other areas of spending. If your student loan payments continue to stand out as the largest burden, reach out to your servicer to learn what options you have for lowering your monthly bill.

Research repayment support and loan forgiveness programs

If you are looking for support making payments on your student loans, there are a number of options out there for various career types, including:

• US military personnel
• Doctors
• Nurses
• Lawyers
• Teachers

If you are working for a government organization, 501(c)(3) not-for-profit, AmeriCorps, or the Peace Corps, you might be able to apply for Public Service Loan Forgiveness.

Keep in mind that many forgiveness programs take at least ten years of consistent payments before you can get the rest of your loan balance canceled. They’re not quick solutions to student loan debt, so expect to be committed to this repayment strategy for the long haul.

Create a budget around student loan monthly payments

Student loan payments might put a large dent in your already stretched monthly cash flow. So, before your payments start, it’s important to create a budget. First take stock of all your fixed expenses, like rent, utilities, groceries, etc. Then, add in your student loan payment amount and figure out what you have left for discretionary spending after repayment begins.

Being proactive and aware of where your money is going is a strong life skill that will help you both stay on top of your loan bills and reach your other financial goals more quickly.

Consider refinancing your student loans

If you calculate your loan payment amount and realize it doesn’t fit into your monthly budget, there are a few things you can do to get some relief. One is extending your loan term through a federal repayment plan, like an IDR plan*. But if you have high-interest student loans, refinancing⁴ might be a better option.

As a result of ongoing court actions, the terms of some Income-Driven Repayment (IDR) plans, including the SAVE plan, may be subject to change. Please refer to studentaid.gov for the current status of these plans.

If you meet your lender’s eligibility requirements, refinancing could help you get a lower interest rate on your student loans. That could both save you money over the life of the loan and help you get out of debt faster⁵. Want to see what kinds of savings you could qualify for? Use our free rate-checker tool today. It only takes minutes, and it won’t affect your credit score.

About the Author

Carolyn Morris

Carolyn is a content marketer and editor who specializes in financial services. With over a decade of experience in the financial services industry, Carolyn has a passion for demystifying the loan application and repayment process for students and their families.

Disclaimer

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 As was announced by the U.S. Department of Education (ED), federal student loans have resumed accruing interest starting September 1, 2023, and federal student loan payments were reinstated starting in October 2023. Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan. See https://studentaid.gov/ for more information.

2 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.

3 You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.

4 Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.

5 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.