You typically don’t have to pay student loans in graduate school. You can defer payments on federal loans and most private student loans if you're enrolled at least half-time.
But interest will accrue on all graduate school loans and any unsubsidized undergraduate loans during a deferment, increasing the amount you owe. If you can afford to make payments while in school, this is a great way to save money in the long run.
Are student loans deferred if you go to grad school?
All federal student loan payments — including parent PLUS loans taken out on your behalf — can be deferred if you go to graduate school at least half-time. You can also defer federal loans during an eligible full-time graduate fellowship.
Half-time enrollment statuses can look different across universities and graduate programs, so check with your school’s financial aid office to see where you stand.
Many private lenders let you defer graduate loan payments if you’re enrolled at least half-time. But you may need to meet additional criteria to also defer your undergraduate loans.
If you worked for a while before attending graduate school, you may have refinanced your student loans. Check to see if your refinance lender offers in-school deferment. If they don't, you can consider refinancing again with a lender that offers in-school deferment before you enroll in grad school.
How to defer loans while in grad school
If you have federal student loans
Confirm your enrollment status. Your school will report your enrollment status to the government. If you’re eligible for an in-school deferment, you should automatically receive it for your undergraduate and graduate federal loans.
If you do not automatically receive a deferment, contact your school or apply directly by completing the federal in-school deferment request.
Apply for graduate fellowship deferment. If you are enrolling in a graduate fellowship program, submit the graduate fellowship deferment request to your federal loan servicer.
If you have private student loans
Contact your private lenders. If the lender offers in-school deferment, you will need to request it. The process is not automatic like with federal loans. Ask your lender or private loan servicer about its process.
Opt for forbearance. If deferment isn’t available, you could postpone payments with forbearance. All loans accrue interest during forbearance. Private lenders also limit this option, often to 12 months.
Use this benefit only if necessary; you may want to hang onto private loan forbearance in case you lose your job or face a different hardship.
Should you pay student loans during graduate school?
Money may be tight while in graduate school. But if you can afford to make full or interest-only payments during graduate school, it can save you money down the road.
There are no subsidized loans for graduate school. All grad school loans will accrue interest even while in deferment. The more you borrow and the longer you delay payments, the larger your balance.
Use the below calculator to estimate how much interest your loans would accrue by not paying them during graduate school:
