what is a grace period when repaying loans 
a grace period is a set time after the due date when a payment can be received without penalty not all loans offer grace periods and terms can vary among lending institutions and the loan type if a loan has a grace period making a payment within this window can help you avoid late fees although interest may still accrue this is not to be confused with a loan moratorium which is a more extended period like deferment or forbearance when your lender allows you to stop making payments while you get your financial house in order 