Private Student Loan Repayment
When applying for a student loan, it is important to consider all available repayment options. Equally important, borrowers should estimate what their monthly payment will be based on the amount they intend to borrow.
Common Repayment Plans
Many borrowers are not aware of the different types of helpful budget friendly repayment plans offered through their private student loan lender. In most cases, lenders generally offer the same type of private student loan repayment options. These include full loan deferral, interest only repayment, or immediate interest and principle repayment.
No principal or interest payments are due while enrolled in school (up to four consecutive years). Payment of principal and interest will begin 6 months after graduation, or if enrollment drops below half time. Interest will continue to accrue during the deferment period and will be capitalized (added to the loan) at the time of repayment.
Pay only accrued interest while enrolled in school (up to four consecutive years). Payment of principal and interest will begin either 45 days after graduation or if enrollment drops below half time.
Payment of principal and interest will begin immediately after the loan is fully disbursed.
Private Student Loan Repayment Terms
Depending on the total amount borrowed, repayment terms for private student loans typically range from 10 - 25 years. Usually, the higher the loan amount, the longer the term.
Private student loan consolidation is an option available to borrowers once they begin repaying their loans. Consolidation allows borrowers to refinance their loan, potentially secure a lower interest rate, and lengthen the term of repayment in order to lower monthly payments.
Deferment options such as economic hardship, public service, unemployment, etc. may be offered to those borrowers who qualify. We recommend that you contact your lender for a full list of deferment options.