India, June 1 -- Most borrowers sign their education loan documents without fully grasping one clause that will quietly reshape their repayment for years: the moratorium period. It sounds like a grace period, and in some ways it is. But the math behind it is less gracious than the name suggests.

What the Moratorium Period Actually Is

When you take an education loan, most lenders don't expect you to start repaying immediately. The moratorium period is the window during which no EMI payments are due. It typically covers the duration of your course plus six months to a year after completion. The idea is simple: you shouldn't have to repay a loan while you're still in college and not earning.

For a four-year undergraduate program, this cou...