Last week we touched on the immediate repayment option for private student loans. This week we are going to touch on the interest only repayment option.

If you select the interest only repayment plan your monthly payment will begin while you are in school but it will be lower than under the immediate repayment plan. Your payment will be just enough to cover the cost of the interest that would be accruing on your student loan.

If you elect this repayment plan your student loan balance won’t decrease while in school, but it won’t be increasing either. Under the interest only repayment plan your monthly payments, once your student loans go into full repayment, will be lower than they would be under the standard deferred repayment plan.

Check back next week on additional information about the standard deferred repayment plan.