The post-deferment grace period refers to a specific timeframe for certain federal student loans. For loans made before October 1, 1981, this period lasts six consecutive months. It begins the day after the authorized deferment period ends. During this time, borrowers are not required to make payments on their loans, allowing them a temporary reprieve before repayment begins.
This term is primarily used in the context of federal student loan regulations. It is relevant to borrowers who have received deferments on their loans and are transitioning back to repayment. Understanding the post-deferment grace period is essential for managing student loans effectively. Users can benefit from legal templates and resources available through platforms like US Legal Forms to navigate their loan repayment options.
Here are a couple of examples of abatement:
Example 1: A borrower with a federal student loan made in 1980 receives a deferment due to unemployment. After the deferment ends, they enter a six-month grace period before they must start making payments.
Example 2: A student who graduated in 1981 and had previously deferred their loan will benefit from a six-month grace period to find employment and stabilize their finances before repayment begins. (hypothetical example)
34 CFR 682.200 (b) governs the post-deferment grace period for federal student loans. This regulation outlines the terms and conditions related to deferment and the subsequent grace period.
| Term | Description | Difference |
|---|---|---|
| Deferment | A temporary postponement of loan payments. | Deferment occurs before the grace period and can last for various reasons. |
| Forbearance | A temporary reduction or suspension of loan payments. | Forbearance is often granted for financial hardship, unlike the grace period which is automatic after deferment. |
If you have a federal student loan made before October 1, 1981, and are nearing the end of a deferment, be aware of your upcoming grace period. Use this time to assess your financial situation and prepare for repayment. Consider exploring US Legal Forms for templates that can help you manage your loan repayment or consult a legal professional if you have specific questions.
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After the grace period, borrowers must begin making regular payments on their loans.