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

If you select the partial interest repayment option you will have a low fixed monthly payment that will be applied towards the interest on your loan. It’s very likely that your monthly payment won’t cover the entire amount of interest that is being accrued on your loan, but it will certainly help keep the accrued interest to a minimum.

Under the partial interest 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. If you have a little extra spending money, even if it’s $10 a month, that you can afford to use to make these payments you will thank yourself in future years.