Can I apply for an IDR while in grace?

Asked by: Mayra Morar  |  Last update: March 9, 2025
Score: 4.1/5 (14 votes)

Yes. Choosing a repayment plan—including an income-driven repayment plan—during your six-month grace period has no effect on the grace period. You do not enter repayment on your loans until after your grace period has ended.

Can you apply for an IDR during the grace period?

When Do I Sign Up For an Income-Driven Repayment (IDR) Plan? After your 6-month grace period ends (when you leave your higher education program or graduate) you will automatically enter the 10-year Standard Repayment Plan. You can enroll in an IDR Plan at any time when you are paying off your student loans.

Can I apply for change of status during grace period?

Workers may use the maximum 60-day grace period to apply to change their nonimmigrant status, which, depending on eligibility, may include: Changing status to become the dependent of a spouse (for example, H-4, L-2).

Why am I not eligible for an income-driven repayment plan?

Eligibility. Defaulted loans are not eligible for repayment under the SAVE, PAYE, or ICR Plans. Starting in summer 2025, defaulted Direct Loans will be eligible for the IBR Plan.

Does grace period count towards student loan forgiveness?

Any payments you make on a loan during the grace period will not count toward PSLF.

Intro to IDR: What To Know About Income-Driven Repayment (IDR) Plans for Student Loans

25 related questions found

How does the one-time IDR adjustment work?

Under the IDR adjustment, ED will review borrowers' accounts and give them credit for certain months that didn't previously qualify towards IDR forgiveness. This program immediately benefits borrowers who have been in repayment for at least 20 years.

Is grace period considered deferment?

Both grace periods and deferments are periods of time during which a borrower does not have to pay a lender money toward a loan. Grace periods tend to be built into loan terms, whereas most deferments require application and documentation.

How long does it take for an IDR plan to be approved?

Note: We maintain the online application for IDR plans, but we transfer your IDR plan request to your loan servicer for processing. Your servicer will notify you when your request has been processed. Processing typically takes about 30 days from the date you submit the request.

How much money is too much for an IDR plan?

In most cases, you have to make sure your income always stays low enough that you qualify for the IDR plan—which means it can't go above the level where your payment would be higher than 10% of your monthly discretionary income.

What if I can't afford my IDR payments?

If You Can't Afford Your Payments

Don't wait to contact your loan servicer to discuss options. An IDR plan could lower your payment. If your income drops (for example, if you become unemployed), your payment could be as low as $0 per month. You can request a temporary pause of payments (deferment or forbearance).

What happens if you go past your grace period?

After your nine-month grace period expires, the billing cycle starts and interest begins accruing. You will not be expected to make that first payment until the end of the first quarter of the billing cycle. For example, if your grace period ends in December, your first payment will be due in March.

What is the 90-day rule for status change?

The USCIS 90-day rule concerned the fact that a nonimmigrant visa holder provided false information when entering the United States or applying for a visa. This presumption arose when the holders participated in activities not permitted by their status within the first 90 days of entering the country.

What is the 60-day rule for H-1B?

Whereas the F-1 grace period is tacked on to the end of a student's program end date after completing a course of study, the H-1B 60-day grace period is the sooner of 60 consecutive days after the cessation of work or the petition end date, i.e., whichever comes first.

Are IDR loans forgiven after 20 years?

Under an income-driven repayment (IDR) plan, you may be eligible to have any remaining balance on your student loans automatically canceled or forgiven after 20 to 25 years, and for some borrowers, loans will be canceled in as little as 10 years!

What is the grace period rule?

In other words, it is a length of time during which rules or penalties are waived or deferred. Grace periods can range from a number of minutes to a number of days or longer, and can apply in situations including arrival at a job, paying a bill, or meeting a government or legal requirement.

Who qualifies for IDR loan forgiveness?

Any borrowers with loans that have accumulated eligible time in repayment of at least 20 or 25 years will see automatic forgiveness, even if they are not currently on an IDR plan. Borrowers will continue to see the COVID-19 related forbearances counted toward IDR and PSLF forgiveness.

What if my IDR payment is 0?

Plus, you'll still be making progress toward loan forgiveness, which you can receive after 20 or 25 years on an IDR plan. Your $0 monthly payments can also count toward Public Service Loan Forgiveness (PSLF), which offers loan forgiveness after 10 years of working at a qualifying not-for-profit or government agency.

Is the IDR plan worth it?

IDR plans are a great option if you're struggling to make loan payments. They adjust to your financial situation, making it a more affordable repayment option. Of course, these plans are only available for your federal student loans. If you have private student loans, talk to your lender about repayment options.

What happens if I don't recertify my IDR?

Under the PAYE Plan, IBR Plan, or ICR Plan

If you don't recertify your income by the annual deadline, you'll remain on the same IDR plan, but your monthly payment will no longer be based on your income.

Can you be denied an IDR?

Yes, you can be denied access to income-driven repayment plans. The reason? Not having a partial financial hardship. This is a requirement for certain plans, such as Income-Based Repayment (IBR) and Pay As You Earn (PAYE) plans.

Does IDR affect credit score?

Income-driven repayment plans will not hurt borrowers' credit scores. Borrowers who make the required monthly loan payment will be reported as current on their debts to credit bureaus, even if the required payment is zero.

What is proof of income for IDR?

Alternatively, you can provide documentation, such as your most recent tax return. If you didn't file taxes, other acceptable income information can include pay stubs or a letter from your employer.

What happens when grace period ends?

Since this grace period has ended, student loan borrowers who don't make payments will go delinquent or, if their loans aren't paid for nine months, go into default. Borrowers who can't afford to make payments can apply for deferment or forbearance, which pause payments, though interest continues to accrue.

What does the grace period allow?

A grace period is the period between the end of a billing cycle and the date your payment is due. During this time, you may not be charged interest as long as you pay your balance in full by the due date.

What is a hardship deferment?

A deferment is a way to postpone paying back your student loans for a certain period of time. The economic hardship deferment is available only if you have a federal student loan. You are eligible only if you are not in default on your loans and if you obtained the loans on or after July 1, 1993.