Interest-Only plans reduce the Monthly Payment Amount for a limited time to as low as the amount of interest that accrues each month.
The interest-only period is typically offered in six month increments. Depending on eligibility, long-term interest-only periods may also be available. Your Monthly Payment Amount will increase after the interest-only period ends.
By making reduced payments over a longer period of time, your total loan cost may be higher compared to a standard repayment schedule.
Rate Reduction Program
The Rate Reduction Program is an alternative payment program for private student loan borrowers experiencing difficulty but who can afford to pay a reduced amount. The program provides a reduced interest rate for a 6-month period. As a result, the Monthly Payment Amount is also temporarily reduced.
By making reduced payments for a period of time, your total loan cost may be higher compared to a level repayment schedule. That's because during the program, your principal balance may be paid down at a slower rate compared to a level repayment schedule.
Eligibility for the program is dependent upon your and your cosigner's financial information. Proof of income may be required. Three (3) qualifying payments may be required prior to enrollment in the program.