Private Loan Repayment
- The interest rates on private loans are variable and are adjusted quarterly.
- Grace period may be 6-9 months.
- No deferment option, but forbearance granted at the lender´s discretion. Contact your lender/servicer to request a forbearance.
- During forbearance, accrued interest will be capitalized, i.e., added to principal, which can be costly.
- Repayment term: 15 to 25 years depending on the amount borrowed.
- There is no prepayment penalty.
- Generally, private loans are more expensive because of the variable interest rate and should be paid down first.
- Not forgiven in the event of death or disability.
- May not be consolidated into a Federal Direct Consolidation Loan.