FAFSA loan repayment timeline confusion - when do I actually start paying?

FAFSA isnt a loan tho, its just the application. Sounds like u got federal direct loans which is different.

The previous commenter is correct. FAFSA is just the application (Free Application for Federal Student Aid) - not the loan itself. You received Federal Direct Loans through the information you provided on your FAFSA. As for repayment, here's how it typically works: - You get a 6-month grace period after graduation (or dropping below half-time enrollment) - Interest may accrue during school and the grace period depending on whether you have subsidized or unsubsidized loans - After the grace period, you'll be automatically placed on the Standard Repayment Plan (10 years of fixed payments) - Your servicer will contact you before repayment begins with exact monthly amounts - There are income-driven repayment plans if the standard payments are too high You can check your loan details and servicer by creating an account at studentaid.gov - this will show your current balance, loan types, and who your loan servicer is (the company that handles your repayment).

my cousin graduated last year and he said the grace period is actually only 3 months not 6!!!! so make sure u have money saved up!!

The whole system is DESIGNED to confuse you so you mess up and they can charge you fees and penalties!! I graduated in 2021 and my "servicer" (loan shark) kept "losing" my income certification paperwork for my income based plan 3 TIMES IN A ROW forcing me into the standard plan with $580 payments I COULDN'T AFFORD. They're all scammers and don't care if you default!!! Make sure you document EVERYTHING and call them constantly to confirm they received your paperwork. And NEVER EVER trust what they tell you on the phone because the next rep will say something completely different!!

Hey there! I was in your exact position about 4 years ago. Here's what I learned about repayment: 1) During school: No payments required as long as you're enrolled at least half-time 2) After graduation: 6-month grace period before payments start 3) Repayment options: Standard (10 years), Extended (25 years), Graduated (starts lower, increases), and several Income-Driven plans For my $30k in loans, my standard payment was about $310/month. So your $8,500 would likely be around $85-90/month on the standard plan. But definitely look into income-driven plans if you're worried - they can cap payments at 10-20% of your discretionary income. Also, check if you have subsidized or unsubsidized loans - subsidized don't accrue interest while you're in school, but unsubsidized start accruing interest immediately. I recommend creating an account at studentaid.gov NOW rather than waiting until graduation so you can see exactly what loans you have, their interest rates, and who will be servicing them when repayment starts.

one thing nobodys mentioned is that you should try to pay the interest on unsubsidized loans while ur still in school if u can afford it!! otherwise that interest gets added to ur loan balance when u graduate (called capitalization) and then u pay interest on the interest which is bogus. i learned this the hard way and my 12k loan turned into 14k by graduation just from interest!!

I've been trying to reach the Federal Student Aid folks for weeks to get some questions answered about my repayment options and keep getting disconnected or wait times of 2+ hours. Finally, I used Claimyr (claimyr.com) and got connected to an agent in about 10 minutes. They have this video that shows how it works: https://youtu.be/TbC8dZQWYNQ They helped me understand my repayment plan options and even enrolled me in an income-driven plan. So much better than waiting on hold forever. Just thought I'd share since it sounds like you'll probably need to call them at some point too!

BTW, watch out for the MASSIVE interest rates they're charging now!!! My brother just took out loans for this year and they're at 6.5% for undergrad and 8.05% for grad PLUS loans!! That's basically a credit card at this point!! The government is just as predatory as private lenders now.

One important thing to add: whenever you do start repayment, set up autopay! You get a 0.25% interest rate reduction just for using autopay, which doesn't sound like much but can save hundreds over the life of the loan. Also, you're much less likely to accidentally miss a payment and hurt your credit score.

Just wanted to add something that helped me a lot - once you graduate and your grace period is ending, you'll get notifications from your loan servicer about setting up repayment. Don't ignore these! They'll send you information about your repayment options and monthly payment amounts. If you don't respond, you'll automatically be put on the Standard 10-year plan, which might not be the best option for your situation. Take the time to research the different repayment plans (especially income-driven ones) and choose what works best for your post-graduation income. You can always change plans later, but it's easier to start with the right one from the beginning.

This is such a helpful thread! I'm in a similar situation - just got my first federal loan disbursement and was totally confused about the repayment process. Reading through everyone's experiences really cleared things up for me. Quick question though - if I'm planning to go to grad school right after undergrad, do I get another grace period when I finish grad school, or does the clock start ticking from my undergrad graduation? Also, has anyone dealt with having loans from both undergrad and grad school at the same time? I'm worried about juggling multiple loan servicers and payment schedules.

Wow, this thread has been incredibly helpful! I'm actually in my second year and just realized I've been making a huge mistake - I've been ignoring all the emails from my loan servicer because I thought they were just spam. After reading this, I immediately logged into studentaid.gov and discovered I have both subsidized and unsubsidized loans totaling about $15k so far. The unsubsidized ones have been accruing interest this whole time and I had no idea! I'm definitely going to start making those small interest payments that someone mentioned. Even if it's just $30-40 a month, it sounds like it'll save me a lot in the long run. One thing I'm still confused about though - if I have to take out loans for my remaining two years, will all my loans be grouped together for repayment, or will I have separate payment schedules for each year's loans? And does anyone know if there's a limit to how much you can borrow total in federal loans?

This thread has been so educational! I'm a freshman who just accepted my first federal loan package and was completely overwhelmed by all the paperwork. Reading everyone's experiences has really helped me understand what I'm getting into. One thing I want to add for other newcomers like me - I found it really helpful to set up account access with both studentaid.gov AND my loan servicer (mine is MOHELA) right away, even though I won't be making payments for years. Being able to see my loan details, interest rates, and how much interest is accruing each month has made this whole process feel less scary and more manageable. Also, after reading about interest capitalization, I'm definitely going to try to make small payments on my unsubsidized loans while in school. Even if it's just $20-25 a month from my work-study job, it sounds like it'll save me hundreds later. Thanks to everyone who shared their experiences - this community is amazing for helping students navigate this confusing system!

As someone who just went through the loan repayment process last year, I wanted to add a few practical tips that really helped me: 1. Download the Federal Student Aid app on your phone - it makes checking your loan balance and making payments super convenient 2. If you're worried about affording payments after graduation, apply for income-driven repayment BEFORE your grace period ends, not after. The application process can take a few weeks and you don't want to accidentally default 3. Keep all your loan documents in one folder (digital or physical) - you'll need them for tax purposes since student loan interest is deductible up to $2,500 per year 4. Consider setting up a separate savings account now and putting even $25/month into it for your future loan payments. Having that cushion when payments start is a huge relief The system definitely seems overwhelming at first, but once you understand the basics like everyone has explained here, it becomes much more manageable. You're asking the right questions early, which puts you way ahead of most borrowers!

This thread has been incredibly helpful! As someone who just started the whole student loan process, I was completely lost about repayment timelines and had similar confusion about FAFSA vs. actual loans. Reading through everyone's experiences has given me such a clearer picture of what to expect. I'm definitely going to follow the advice about setting up my studentaid.gov account right away and checking what types of loans I have. The tip about making small interest payments during school sounds really smart too - I had no idea that unpaid interest could get added to the principal balance at graduation! One question I have: Is there any benefit to paying more than the minimum payment once repayment starts? Like, should I try to pay extra toward the principal to save on interest over time, or are there other strategies that work better for federal loans? Thanks again to everyone who shared their knowledge - this is exactly the kind of real-world information that's missing from most official financial aid resources!

As a newcomer to this whole student loan world, this thread has been absolutely invaluable! I just submitted my FAFSA a few weeks ago and was completely overwhelmed by all the terminology and timelines. Reading everyone's real experiences has cleared up so much confusion. I'm particularly grateful for the clarification that FAFSA is just the application, not the actual loan - I definitely had that mixed up! And the detailed breakdown of the 6-month grace period and repayment options gives me so much more confidence about taking on this debt for my education. The tip about creating accounts on studentaid.gov and with your loan servicer right away seems like such smart advice. I'm going to do that as soon as my loans are processed so I can track everything from the start. And I'm definitely going to look into making those small interest payments during school if possible - the math on preventing interest capitalization is pretty compelling! Thanks to everyone who took the time to share their knowledge and experiences. This is exactly the kind of practical, real-world guidance that you just can't get from official sources. I feel so much more prepared now!

Just wanted to jump in as another newcomer who found this thread super helpful! I'm a sophomore and honestly had no idea about most of this stuff until reading through everyone's experiences. The distinction between FAFSA (the application) and the actual federal loans was something I definitely needed clarified - I've been calling them "FAFSA loans" this whole time too! What really caught my attention was the advice about making small interest payments during school on unsubsidized loans. I just checked my studentaid.gov account (thanks for that tip!) and realized I have about $3,000 in unsubsidized loans that have been accruing interest since last year. I had no idea this was happening! Going to call my servicer tomorrow to set up those small monthly payments - even if it's just $20-30, it sounds like it'll make a huge difference by graduation. Also really appreciate all the detailed info about grace periods and repayment options. Knowing I have 6 months after graduation and can choose from different payment plans makes this whole thing feel way less scary. Thanks to everyone who shared their real experiences - this is the kind of practical advice I wish they taught in orientation!

As someone who just went through entrance counseling for my first federal loans, I can't believe how much more helpful this thread has been than any of the official materials! The whole FAFSA vs. federal loans confusion is so real - I literally thought I was getting "FAFSA money" until reading this. The breakdown of the grace period and repayment timeline is incredibly reassuring. Knowing I have 6 months after graduation plus all these different repayment options makes taking on this debt feel much more manageable. I'm definitely going to set up my studentaid.gov account today and figure out exactly what types of loans I have. One thing that really stands out is how many people wish they had known about making interest payments during school earlier. I'm a freshman with about $2,500 in unsubsidized loans, so I'm going to look into setting up small monthly payments right away - even $15-20 a month seems worth it to prevent that interest capitalization everyone mentioned. Thanks to everyone who shared their real experiences and practical tips. This is exactly the kind of honest, detailed information that should be part of every financial aid orientation but somehow never is!

As someone who just started the financial aid process this semester, this entire thread has been like a crash course in student loan reality! I had the exact same FAFSA vs. federal loans confusion - totally thought they were the same thing. Reading through everyone's experiences has been so eye-opening. I'm particularly struck by how many people discovered they had unsubsidized loans accruing interest without realizing it. I just got my award letter last week and need to check if any of mine are unsubsidized so I can start making those small interest payments right away. The math on preventing capitalization is pretty convincing! Also really appreciate all the specific advice about setting up accounts early, the 6-month grace period details, and the autopay interest rate reduction. These are exactly the kinds of practical tips that somehow never make it into the official guidance. One question for those with experience: when you were setting up those small interest payments during school, did you find it better to do a fixed monthly amount or just pay whatever you could afford each month? I'm working part-time and my income varies, so I'm not sure which approach would work better. Thanks to everyone who's shared their knowledge here - this community is amazing for helping newcomers navigate this confusing system!

As a complete newcomer to federal student loans, this thread has been absolutely incredible! I just got my first loan disbursement and was so confused about the repayment timeline - I thought I'd have to start paying immediately after graduation with no grace period. Learning about the 6-month grace period and all the different repayment options has made this so much less overwhelming. The FAFSA vs. federal loans clarification was huge for me too - I definitely thought FAFSA was the actual loan! And after reading about interest capitalization on unsubsidized loans, I immediately checked my studentaid.gov account and discovered I have $1,800 in unsubsidized loans that are already accruing interest. I had no idea this was happening! I'm definitely going to start making small monthly payments toward that interest - probably around $15-20 since I'm working part-time. It's amazing how much money this could save me by preventing capitalization at graduation. Thank you to everyone who shared their real experiences and practical advice. This is honestly the best financial education I've gotten since starting college, and I feel so much more confident about managing my loans now. This community is incredible for helping students navigate this confusing system!

This thread has been a goldmine of information! I'm a junior who's been taking out federal loans for three years now, but honestly didn't understand half of this stuff until reading everyone's experiences here. The whole grace period timeline, repayment options, and especially the interest capitalization issue - none of this was clearly explained when I first took out loans. I just logged into my studentaid.gov account after reading this and realized I have about $4,200 in unsubsidized loans that have been quietly accumulating interest since my freshman year. I'm kicking myself for not knowing about making those small interest payments during school! Better late than never though - I'm calling my servicer tomorrow to set up monthly payments. One thing I wanted to add that might help other students: I found out that some employers offer student loan repayment assistance as a benefit. It's worth asking about when you're job hunting after graduation. My friend's company pays up to $200/month toward her federal loans, which has made a huge difference in her repayment timeline. Thanks to everyone who shared their knowledge here - this is exactly the kind of real-world guidance that should be standard in financial aid counseling but somehow never is!