If you recently graduated or you are just starting school this fall, knowing how to take advantage of your loan's grace period can be a very important tool for your financial future.
What's a grace period?
The grace period typically refers to a period of time where you do not need to be making payments yet on your loan. For CommonBond loans, this is 6 months after you graduate from an eligible graduate program, but it is different for different lenders. Interest continues to accrue but you can make payments if you wish to pay down the interest before entering repayment.
What happens when my grace period ends?
At the end of your grace period, any interest that accrued will be capitalized and added onto your principal balance, resulting in a new higher principal balance. You should sign up for your loan provider's auto-pay program to take advantage of any auto-pay discounts and have your payments automatically deducted from your bank account. Set it and forget it!
I just graduated and I'd like to refinance with CommonBond, but my loans with my current servicer are still in their grace period. Do I need to make payments with them before I can refinance?
No, you can refinance with us without making any payments while in your grace period! We can honor any existing grace period on your current loans for up to 6 months from your graduation date. Just let us know when you're starting an application with us, and we'll send you a form to get that set up.