grace period

noun

: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.

Recent Examples on the Web

The federal government pays your interest while you’re enrolled at least half time in school and during your grace period after leaving school, meaning these generally cost less over time. — Miranda Marquit, Encyclopedia Britannica, 2 Sep. 2026

Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. — Maya Benjamin,dan Avery, CNBC, 31 Aug. 2026

Medical and veterinary students get a grace period of 36 months to account for residency and can defer up to 48 months for residency, fellowship, or other surgical disciplines. — Rebecca Safier, USA Today, 28 Aug. 2026

Vehicle owners are reminded that while vehicle registrations have a 30-day grace period after expiration, temporary license plates do not have a grace period after expiration. — Brian Sherrod, CBS News, 19 Aug. 2026

Word History

First Known Use

1907, in the meaning defined above

Rhymes for grace period

• myriad
• photoperiod

Legal Definition

grace period

noun

grace pe·​ri·​od

: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as

a

: a period of 30 days or one month during which premiums on insurance policies may be paid without penalty

b

: a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

called also days of grace