Private Loan Repayment
The more you know about how to repay your private college loans, the more you'll save
Because they are subject to the dynamics of a highly competitive marketplace, methods of private college loan repayment vary widely. However, most lenders offer a number of repayment options.
It's important to closely read and understand the language in your loan's promissory note, since that governs terms and conditions of college loan repayment. Lenders will generally notify the borrower before repayment should begin. Always remember, that as the borrower, you're responsible for knowing when those payments are due, regardless of whether or not you've been reminded. Failure to pay in a timely manner can lead to credit problems, or even loan default.
Many private student loans take at least two main forms, standard repayment plans and graduated repayment plans, the latter of which calls for lower payments for the first few years (during a period in which the borrower is presumably earning less), after which the amount of the monthly payments escalate. You can generally repay private college loans over a period of between 10 and 25 years.
These are three options to repay college loans:
- Full deferral - in which no principal or interest is due while your child is still enrolled at least half-time. Payment begins six months after graduation.
- Interest-only - in which you pay only the accrued interest while the child is in school.
- Immediate repayment - in which payment of principal and interest begins immediately after the loan is disbursed.
Having access to the right student loan repayment information helps you make the right choice for your family
Citizens Bank helps you make wise choices by providing student loan repayment information. Visit our student services page to learn more about our repayment options on our TruFit Student Loan®. If you still have questions, call a student loan specialist at 1-800-708-6684, and we'll help walk you through the process.