What is the “Draw Period” and what is the “Repayment Period”?
The Draw Period is the period of time you can access funds from your Home Equity Line. At Direct Federal we offer a ten-year Draw Period. At the end of ten years you will enter the Repayment Period. The Repayment Period is the time during which you make monthly principal and interest payments to gradually pay off your balance. Once you enter the Repayment Period your line is closed to further advances. Direct Federal provides you with a ten-year Repayment Period.
