A period of time that generally begins on the day after a borrower graduates, leaves school, or drops below half-time enrollment and ends on the day before the repayment period begins. A borrower is not required to make payments during the grace period. Grace periods occur for:
- subsidized and unsubsidized loans made under the Direct Loan and FFEL programs (six-month grace period); and
- loans made under the Perkins loan program (generally nine-month grace period).