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.