What are the repayment terms of the loan?
While you are in school, you have several options, including: • Full deferment of principal and interest* • Interest-only monthly payments • Principal and interest monthly payments *Note: During deferment, interest on the loan will accrue. Mandatory repayment begins six months after the student graduates or separates the school. Monthly payment is based on final loan balance and repayment choices. As repayment begins, you will have two options: • Straight repayment over 20 or 25 years. If the loan balance is under $40,000, the loan repayment period is 20 years. If the loan balance is above $40,000, the loan repayment period is 25 years. • Graduated repayment for two years. The graduated repayment option temporarily lowers monthly payments by amortizing the first two repayment years over a 40 year period and then over either 18 or 23 years for the remainder of the loan, depending on the loan balance as described above.
