What do the terms “grace period,” “deferment,” and “forbearance” mean?
A grace period refers to a specific period of time during which you are not required to begin paying your loans back. Different loans have different grace periods. Deferment refers to a delay in repayment. If you ever have a problem making your monthly loan payments, you may be able to postpone repayment through deferment. Deferments may be offered on loans for periods or unemployment, enrollment in school, or economic hardship. Forbearance means you may make either no payments or smaller payments. If you can’t make payments on your loan for reasons such as unexpected personal problems or poor health and you don’t qualify for a deferment, you may apply for a forbearance. You will need to contact your lender directly to get information on the grace period, deferment, or forbearance options on your specific loan.
