Glossary

Cancellation - Cancellation occurs when part or all of your loan is forgiven due to an activity or a situation you are in. Employment or service cancellations forgive part of your loan for each full year of employment. Two cancellations available across all student loan types are Death and Permanent & Total Disability.

Deferment - An authorized period of time during which payments may be delayed and interest does not accrue. Any payments made during this time may be applied to principal.

Grace Period - A period of time during which the borrower is not required to make payments. A grace period occurs between graduation (or if the borrower ceases to be enrolled at least half-time as a degree-seeking student) and the start of repayment.

Post Deferment Grace Period - A 6 month period of time following Perkins Loan deferments in which payments are not required and interest does not accrue. Any payments made during this time may be applied to prinicpal.