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.