Repaying Private Loans
Generally, the repayment period is 20 years. There are no prepayment penalties on this loan. A variety of repayment options are available, including graduated repayment plans that allow you to make smaller monthly payments early in your career.
Monthly payments are calculated based on the amount borrowed, the repayment option selected, and whether payments are made on time. If the interest rate changes, the amount of the monthly payments will be reduced or increased accordingly. The minimum monthly payment is $50.
The first payment is due up to 9 months after you graduate or 9 months after your registration status drops below half time, whichever is earlier.
For more information on repayment, contact the lender or your financial aid office.
CONSOLIDATING PRIVATE LOANS
In the past year, several lenders have introduced the ability for students to consolidate their private loans. The philosophy is that this consolidation loan pays off the underlying private loans into a single private consolidation loan. Generally, they allow for up to a 30-year repayment period. Not all lenders offer a fixed rate option and many only offer them to domestic students. In addition, most price out the loan based on FICO scores, debt/income ratios and various interest rate indices.