Bursar's Office, Temple University

The interval between graduation (or termination of at least half-time enrollment) and the beginning of repayment is called the "grace period". This period begins immediately after you cease to be enrolled at the university. During your grace period, repayment is not required and interest does not accrue (provided that the loan was subsidized by the government). A grace period is six, nine or twelve months long, depending on when you received your first loan. The length of your grace period was disclosed to you when you received the loan.

The purpose of your grace period is to give you time to establish yourself financially. Repayment is not contingent on your ability to obtain employment in your educational field of major. Therefore, it is important to take advantage of this time because once it has elapsed your student loan becomes due, whether or not you are ready to repay. During this time you should be actively seeking employment, accumulating savings or making other plans for your immediate future.

Repayment of your student loans is very important. Prompt repayment of loans not only assists other students by making more loan funds available, but also keeps your credit rating in good standing.

It is your responsibility to keep the University's Department of Credit & Collections and each of your lenders informed of any changes in your address or name. You are required to attend an exit interview before you graduate, transfer or withdraw from the University.

If you become delinquent of default on an educational loan it will effect your credit rating. The university is required to report delinquent Perkins and Health Professions Student Loan borrowers to a national credit-reporting agency. Federal authorities can withhold Medicare and Medicaid payments to physicians who are delinquent. The I.R.S. has been given the authority to withhold income tax refunds for certain delinquent loan borrowers. The Department of Health and Human Services actively pursues delinquent HEAL borrowers, taking steps including litigation, reporting the delinquency to credit reporting agencies, as well as other serious actions.