what is moratorium period in education loan

A moratorium period in an education loan is a specified duration during which the borrower, typically a student, is not required to make repayments. This period starts from the date of the loan disbursement and continues until the end of the moratorium period specified by the lender. It usually includes the course duration plus 6 to 12 months after completing the course, allowing the student to find a job and stabilize their financial situation before starting to repay the loan. During the moratorium period, interest on the loan may still accrue, leading to a higher total loan amount payable. It is important to note that the moratorium period is different from a grace period, as during a grace period, a borrower is expected to make a payment, whereas during a moratorium period, the borrower is not required to make a payment