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What are the repayment terms of the loan?

While you are in school, you have several options:

  • Full deferment of principal and interest*
  • Interest-only monthly payments
  • Principal and interest monthly payment

As repayment begins, you will have two options:

  • Straight repayment over 20 or 25 years. If the loan balance is less than or equal to $40,000, the loan repayment period is 20 years. If the loan balance is above $40,000, the loan repayment period is 25 years.


  • Graduated repayment for two years. The graduated repayment option temporarily lowers monthly payments by amortizing the first two repayment years over a 40 year period and then over either 18 or 23 years for the remainder of the loan, depending on the loan balance as described above.

*During deferment, interest on the loan will accrue. Mandatory repayment begins six months after the student graduates or separates from the school.
Please note that for loans in full deferment during college, unpaid interest will be capitalized at the end of the 6-month grace period and added to the original principal balance. Monthly payment is based on final loan balance and repayment choices.

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