Requirement to Repay with Interest
If your TEACH Grant is converted to a Direct Unsubsidized Loan, you will be required to repay the full amount of all TEACH Grant funds you received, with interest charged from the date of each TEACH Grant disbursement.
If your TEACH Grant is converted to a Direct Unsubsidized Loan, you will receive a six-month grace period that begins on the day after your grant is converted to a loan. During the grace period:
- You are not required to make payments on your loan.
- Interest will continue to accrue.
You must begin making payments on your loan at the end of the six month grace period. Your Federal Loan servicer will:
- Notify you of the date your first payment is due, and
- Provide you with a repayment schedule that identifies your payment amounts and due dates.
Once your TEACH Grant is converted to a Direct Unsubsidized Loan, it cannot be reconverted to a grant.
Effect of Conversion to a Loan on Loan Limits
Any TEACH Grant that is converted to a Direct Unsubsidized Loan will not count toward the annual or aggregate loan limits that apply to other federal student loans you have received or may receive in the future to help pay for your education.