Say Goodbye To The Student Loan Grace Period

Though it looks like federal lawmakers will finally come to an 11th-hour deal to keep interest rates on federal Stafford student loans from doubling, certain programs that student borrowers have benefited from will be going by the wayside come July 1.

Neither graduate students nor undergraduate students will have a six-month interest-free period after finishing school. And graduate students will now be required to pay student loan interest while still working on their degree.

In total, it’s expected these changes will cost students an additional $20 billion over the next decade.

The changes apply to new loans disbursed starting July 1, 2012, and through June 30, 2014.

No more grace period on student loans [Reuters]