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Federal Stafford Loan Glossary of Terms

The Federal Family Educational Loan Program (FFELP) includes:

  • Federal Stafford Loans (Subsidized and Unsubsidized)
  • Federal Supplemental Loans for Students (SLS)
  • Federal PLUS Loans
  • Federal Consolidation Loans

Grace Period - a period of six months between graduation (and/or a drop in attendance to below half time) and the beginning of the repayment of the loan.

Deferment - is the temporary postponement of payments of the loan principal and in some cases interest. During authorized periods of deferment, the federal government pays the interest on subsidized loans, and the borrower is responsible for paying the interest on unsubsidized loans.

All borrowers should check with the lender or holder of their loans for more information about deferments and forbearance. Click here if you would like to download a deferment form.

Forbearance - is an agreement with the lender or holder to temporarily postpone or reduce principal payments. Payment of interest remains the borrower’s responsibility during the forbearance, no matter which loan type (subsidized or unsubsidized) was borrowed.

All borrowers should check with the lender or holder of their loans for more information about deferments and forbearance.

 
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