Student loan activist says feds misuse term ‘grace period’
Debt-ridden students are still on the hook for interest six months after graduation
“Why do they call it . . . grace period? Interest still accrues but you just don’t pay it until after the period is over,” the borrower said.
In another posting, a subscriber named pacalis writes:
“The loan starts interest at graduation but it’s carefully advertised to suggest that interest starts after the six-month grace period. There is no ‘grace’ period, only a ‘no payment period.’ By the time a student first notices, they have already accrued several months of interest at (a) high interest rate – a deliberate and nasty tactic by the banks.”
According to a 2007 Canada Student Loan Program client satisfaction survey, 64 per cent of borrowers said they were unaware that interest was charged during the six months.
- The Canadian Press
I remember in 2005 being under the impression that I had 6 months no payments, no interest and was *shocked* that wasn’t the case.
I most definitely would have started paying back right away too!
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