Ottawa accused of misusing term "grace period" relating to student loans

May 29, 2009

A student loan activist has lodged a formal complaint against Human Resources and Skills Development Canada over its "misleading and confusing" use of the term "grace period" as applied to student loans. Mark O'Meara of Canadastudentdebt.ca says "grace period" suggests an interest-free/no payment term. That used to be the case for student loans, but Ottawa has since changed its policy in that interest is accrued during the 6-month period students have before payments begin. O'Meara says HRSDC should use a more clear and appropriate term, such as "payment and interest deferral period." Canadian Press