College Loan Repayment Options

When applying for a college loan, one important feature to consider is the repayment options. Most borrowers are not aware of the different types of 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.

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College Loan Repayment Plans

You have three options including deferment or repayment of interest only or interest and principle.

Full Deferral: No principal or interest payments due while enrolled in school (up to four consecutive years). Payment of principal and interest will begin 6 months either after graduation or if no longer enrolled at least half time. Interest will continue to accrue during the deferment period and will be capitalized (added to the loan balance) at the time of repayment.

Interest Only: 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 withdrawal from school.

Immediate Repayment: Payment of principal and interest will begin 45 days after loan is disbursed.

College Loan Repayment Options

Depending on the total amount borrowed, repayment terms for college loans typically range from 10 - 25 years - 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. It is recommended that you contact your lender for a full list of deferment options.

For more information about college loans, check out our private loan comparison page, or simply get started and apply online.