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February 16, 2021 1:00 AM Reyna Gobel - Forbes Advisor
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Updated:
February 17, 2021 9:43 AM
Paying off your undergraduate loans before grad school could mean forfeiting your access to potentially money-saving federal programs, such as faster student loan forgiveness and interest subsidies on certain federal loans.
If you don’t pay off federal undergraduate student loans before grad school, they’ll be placed on automatic in-school deferment if your school participates in the National Student Clearinghouse. Private loans may not be automatically deferred and often, it is safer than it is for federal loans to pay them off early. Here’s what you need to know when strategizing whether to pay off your undergraduate loans first if you plan on attending grad school.