Private Loan Repayment

Banks, credit unions and some online lenders offer private student loans. It's important to understand the interest rate, fees and borrower protections that may be available to you. Private loan repayment plans and incentives vary from lender to lender and you must contact your specific lender for repayment information. The promissory note you signed when applying for the loan outlines the terms specific to your loan and is a useful to reference. You can request a free credit report from annualcreditreport.com that lists the private student loans reported to the consumer reporting agencies. 

Unlike federal loans, which have fixed interest rates, private student loans can have variable interest rates that increase or decrease over time. Some private lenders offer deferment or forbearance, two options that allow you to temporarily postpone your loan payments. Loan forgiveness is typically not available with private loans. Since private loans have fewer benefits and protections, it may be beneficial to target repayment toward those loans first if you've borrowed both federal and private student loans. 

Check with your lender to learn more about the interest and capitalization of your loan and to be aware of your total loan cost. You may also want to discuss with your lender how your monthly payment is allocated across your loans. Private student lenders may offer small reductions in interest or other benefits for consecutive on-time or automatic debit payments. 

Below find different repayment options a private lender may offer:
 
Immediate Repayment Begin monthly payments as soon as the loan disburses and while still in school.
Interest-only Repayment Only pay the interest on the loan while still in school. Full repayment begins after graduation. 
Partial Interest Repayment Pay a flat rate while still in school that only covers part of the accrued interest. 
Deferred Repayment No payments due until after your grace period, once you graduate, or depending on the lender, when your enrollment drops below half-time.