Period of time during which a borrower is not required to begin repayment. Borrowers do not have to apply for grace. GSL and SLS loans are no longer made, having been replaced with Stafford Loans. Some publications will use Stafford Loans to refer to GSL Program Loans. The organization that owns a borrower s loan or holds the paper and to whom the borrower owes repayment.
Some lenders sell loans to other lenders, resulting in a new holder for the borrower.
The lender may be a bank, a credit union, a school, the Federal Government, or another lending organization. The lender is the organization to whom the borrower initially owes repayment, and at that point, the lender is also the holder of the borrower s loan. Borrower whose first Stafford Loan disbursement was made on or after July 1, 1993. This index is currently used to calculate the interest rate on some private loans. The Prime Rate can also be found in the business section of most newspapers, and in the Tuesday edition of the Wall Street Journal.