Your loans may be in a grace period, deferment, income-driven repayment pause, or forbearance
When your student loan servicer shows "no payment due," it means you are not required to make a payment at this moment—but the loan is still active and accruing interest in most cases. This happens for several reasons, and the reason matters because it affects when you will owe money again, whether interest is building up, and what you need to do next.
The most common causes are a grace period (a window after graduation or leaving school before payments start), deferment (a temporary pause you request, often for hardship or return to school), forbearance (a pause granted by your servicer when you cannot pay), or an income-driven repayment plan pause (a temporary hold while your income is being recertified or while a federal payment pause is in effect). Each one works differently and has different consequences for your balance.
Key Takeaways
- A grace period after graduation typically lasts six months for federal loans and requires no payment, but interest may still accrue depending on loan type.
- Deferment and forbearance pause your payments but usually allow interest to accumulate, increasing the total you owe when payments resume.
- Income-driven repayment plans may show no payment due if your income is below the threshold, but you should still recertify your income annually to stay in the program.
- Check your loan servicer's website or call them directly to confirm which status applies to your loans and when payments will resume.
Grace periods: the six-month window after school ends
If you recently graduated, left school, or dropped below half-time enrollment, your federal loans are likely in a grace period. For most federal loans (Direct Loans, Stafford Loans, and Perkins Loans), this period lasts six months. During this time, you owe nothing and are not required to make payments.
The catch depends on your loan type. Subsidized loans do not accrue interest during the grace period—the government covers it. Unsubsidized loans and PLUS loans continue to accrue interest, and that interest gets added to your principal balance when the grace period ends. If you want to avoid that increase, you can pay interest-only during the grace period, though you are not required to.
Your grace period ends on a specific date. Your servicer will send you a notice before it ends, usually 15 days in advance, telling you when your first payment is due. Mark that date in your calendar; missing it counts as a late payment and damages your credit.
Deferment and forbearance: pauses that let interest grow
Deferment is a pause you request from your servicer, usually because you are returning to school, experiencing economic hardship, or serving in the military or Peace Corps. During deferment, you do not have to pay. Subsidized loans do not accrue interest. Unsubsidized loans and PLUS loans do accrue interest, and it capitalizes (gets added to your balance) when deferment ends.
Forbearance is similar but initiated by your servicer when you contact them about financial difficulty. It is often a shorter-term pause—typically three to six months—and interest accrues on all loan types. When forbearance ends, the accrued interest is added to your balance. You can request forbearance multiple times, but there are limits on how long you can use it.
Both deferment and forbearance require you to stay in contact with your servicer. If you do not respond to notices or recertify your status when asked, the pause ends and payments resume. Check your servicer's website regularly to see when your deferment or forbearance period expires.
Income-driven repayment plans and recertification pauses
If you are on an income-driven repayment plan—such as PAYE, REPAYE, IBR, or ICR—your payment may be $0 if your income is below the threshold for your family size. This is not a pause; it is your actual payment amount under that plan. You still owe the debt, and interest still accrues on unsubsidized loans.
You must recertify your income every year to stay in an income-driven plan. During recertification, your servicer may temporarily show "no payment due" while they process your new income information. Once recertification is complete, your new payment amount appears. If you do not recertify by the deadline, your plan ends and you revert to the standard 10-year repayment schedule, which will have a much higher monthly payment.
Set a calendar reminder for your recertification due date. Most servicers allow you to recertify online through their website, and the process usually takes a few minutes if you have your tax return or income documentation ready.
Federal payment pause: what it was and what changed
From March 2020 through August 2023, the federal government paused payments on most federal student loans. During that time, borrowers saw "no payment due" even if they were not in a grace period or deferment. That pause ended in September 2023, and payments resumed on a schedule set by your servicer.
If your loans still show no payment due after September 2023, it is because of one of the other reasons listed above—not the federal pause. However, if you have not made a payment since the pause ended and your servicer has not contacted you, log into your account or call them to confirm your status. Servicer records can lag, and you do not want to miss a payment by accident.
What to do if you are unsure why no payment is due
Log into your student loan servicer's website and look for a section labeled "Loan Status," "Account Summary," or "Repayment Plan." This section usually shows your current status—whether you are in grace, deferment, forbearance, or an income-driven plan—and when that status ends.
If the website does not make it clear, call your servicer. The phone number is on your loan documents and on your monthly statement (if you receive one). Have your loan account number ready. Ask them: "Why does my account show no payment due?" and "When will my next payment be due?" Write down the date they give you and any action you need to take before then.
If you are in deferment or forbearance and your period is about to end, ask whether you can request an extension before it expires. If you are on an income-driven plan, confirm your recertification deadline. If you are in a grace period, mark the end date and set a reminder to make your first payment on time.
What happens if you miss a payment after the pause ends
Once your grace period, deferment, forbearance, or income-driven pause ends, your payment becomes due. If you do not pay by the due date, your loan goes into delinquency. After 90 days of missed payments, the delinquency appears on your credit report and damages your credit score. After 270 days (nine months), your loan goes into default, and your servicer can begin collection actions, including wage garnishment.
If you know you cannot pay when the pause ends, contact your servicer before the payment is due. Ask about forbearance, deferment, or switching to an income-driven plan. These options are easier to get if you ask before you miss a payment than if you ask after.
Frequently Asked Questions
Does interest still accrue if my loans show no payment due?
It depends on the reason. If you are in a grace period with subsidized loans, no interest accrues. If you are in deferment with subsidized loans, no interest accrues. In all other cases—forbearance, unsubsidized loans in grace or deferment, or income-driven plans—interest accrues and gets added to your balance when the pause ends.
Can I make a payment even if no payment is due?
Yes. You can pay at any time, and the payment will reduce your principal balance. Paying during a grace period or deferment is a smart move if you can afford it, because it prevents interest from capitalizing. Your servicer's website has a payment option, or you can call them to pay by phone.
What if I graduated but my loans still show no payment due after six months?
Your grace period may have been extended, or your servicer may have placed your loans in deferment or forbearance. Log into your account to check the status, or call your servicer to ask why payments have not started. Do not assume the pause will continue indefinitely.
Do I need to do anything while my loans show no payment due?
If you are on an income-driven plan, you must recertify your income annually or your plan ends. If you are in deferment or forbearance, watch for notices from your servicer about when the pause ends. If you are in a grace period, prepare to make your first payment when the six months are up. In all cases, keep your contact information current with your servicer so you receive notices.
What is the difference between deferment and forbearance?
Deferment is usually longer-term and requires a specific reason (school, military service, hardship). Forbearance is shorter-term and is granted by your servicer when you cannot pay. Both pause payments, but interest accrues on unsubsidized loans in both cases. Forbearance has limits on how long you can use it; deferment does not.