Private Loan Repayment

Many borrowers are not aware of the different types of repayment plans offered through their lender. Repayment options vary from lender to lender, but there are some common options. These include full loan deferral, interest-only repayment, fixed payment, or immediate interest and principal repayment. 

No principal or interest payments are due while enrolled in school (generally up to four consecutive years). Payment of principal and interest will begin six 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 (generally up to four consecutive years). Payment of principal and interest will generally 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.

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, unemployment, etc. may be offered to those borrowers who qualify. We recommend that you contact your lender or private loan servicer for a full list of deferment options.