Private Student Loan Repayment
When applying for a private student loan, it is important to consider all available private student loan repayment options. Equally vital, borrowers should estimate what their monthly payment will be based on the amount they intend to borrow.
To further encourage students to make responsible borrowing decisions, our private student loan repayment calculator can help estimate expected monthly private loan payments.
Many borrowers are not aware of the different types of helpful budget friendly repayment plans offered through their lender. In most cases, lenders generally offer the same type of repayment options. These include full loan deferral, interest only repayment, or immediate interest and principle repayment.
Standard Private Student Loan Repayment Plans
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 Loan Repayment Term
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.
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