2808.01.03  GRACE PERIOD

The terms of loans issued on or before September 30, 1980, provide for a nine-
month grace period which is not recurring once exhausted.  The institution 
must contact the borrower at least three times before the first payment is due.  
The first contact is 90 days into the grace period, the second is 180 days into the 
grace period, and the third is approximately 30 days before the first payment is 
due.  Refer to 34 C.F.R. 674.43(c)(1) for the specific information required to be 
transmitted to the borrower with each notice.  Also see NASFAA 
Encyclopedia 5.9.3.2 as an additional reference.

Loans made on or after October 1, 1980, have a six-month recurring grace 
period.  The institution must contact the borrower twice during the grace 
period.  Specific information required for each notice is contained in 
34ÊC.F.R.Ê674.32(c)(1), NACUBO/SLCP, pp. 38-39, and NASFAAÊEncyclopedia 
5.9.4.