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What payment options are available to me? | Private Student Loans

 

We offer a variety of options to help you pay back your loan while you work towards completing your education. If you’re looking to take out an Earnest loan as a solo borrower, we offer deferred* and fixed repayment options. If you’re looking to apply with a cosigner on your Earnest loan, we offer four options: deferred*, fixed, interest-only and full repayment. (If you are unsure if you should apply with a cosigner or not, check out this article.)

These four options highlight Earnest’s available in-school repayment plans.

  • Deferred*: $0 is due while you’re in school and for the first 9 months after graduation. 9 months following graduation, the full minimum monthly payments will be due. The option results in the highest accrued interest and the highest total cost of the loan.
  • Fixed: While in school and for the 9 months following graduation, you’ll make monthly payments of $25. Nine months following your graduation the full minimum monthly payments will be due.
  • Interest-only: (This option is available for cosigned loans only.) While in school and for the 9 months following graduation, you’ll make monthly payments to cover the interest that accrued on your loan since last payment. Nine months following your graduation the full minimum monthly payments will be due.
  • Full payment: (This option is available for cosigned loans only.) While in school and following graduation the full minimum monthly payments will be due. This option will enable you to pay the least amount of interest during the life of the loan.

When deciding which repayment option is right for you, it’s important to consider what financial commitment will you be able to meet while you’re in school. Clients with little savings and no plans to work while in school find that deferred or fixed are good options. Clients with savings, a source of income, or some other source of loan payments (like a family member) generally find that interest-only or full repayment options work best for them. When deciding between the options, you may find that a budgeting tool could help with planning.

If you choose an option that enables you to make no or partial payments while you’re in school and the 9-month grace period following graduation, it’s important to know a few things.

  1. To keep the loan in a no payment or partial payment status while attending school, you are required to be enrolled at least “half time,” without interruption, until the date of your graduation.
  2. If your school reports to us that you’re enrolled less than half time, or provides a last date of attendance, your loan will then enter the 9-month grace period. This is the 9 months following your graduation when you continue to make the same payments made while in school.  Full repayments will be due once your grace period ends.
  3. If you leave your program without completing a degree, you will enter the 9 month grace period. After the 9-month grace period, you will begin to make full payments.

We hope this information written out above is helpful. If you prefer to see the info in a table format, check out the table below

 

 

Deferred*

Available for cosigned and independent loans

Fixed $25  Payment     

Available for cosigned and independent loans

Interest-only 

Available for cosigned loans only

Full repayment

Available for cosigned loans only

How will my payments be set up? $0 due until 9 months after graduation, full payments due thereafter.

Pay $25 fixed monthly payments until 9 months after graduation, full payments due thereafter

Pay just the interest that accrues on your loan each month until 9 months after graduation, full payments due thereafter

Start making full principal & interest payments while in school and continuing after that
When will my first payment be due? 9 months after graduation 

 $25/fixed payments: 23-58 days after the first disbursement of your loan

Full repayments: 9 months after you graduate

Interest only payments: 23-58 days after the first disbursement of your loan

Full repayments: 9 months after you graduate 

23-58 days after the first disbursement of your loan 

Enrollment Requirement? 

Must be enrolled at least “half time,” without interruption, until the date of your graduation.

Yes, if your school reports to us that you’re enrolled less than half time, or provides a last date of attendance, your loan will then enter grace period and, full repayments will be due once your grace period ends Yes, if your school reports to us that you’re enrolled less than half time, or provides a last date of attendance, your loan will then enter grace period and, full repayments will be due once your grace period ends Yes, if your school reports to us that you’re enrolled less than half time, or provides a last date of attendance, your loan will then enter grace period and, full repayments will be due once your grace period ends Not applicable

Interest rate options

Fixed/Variable Fixed/Variable  Fixed/Variable  Fixed/Variable

Grace Period

Amount of time between when you graduate (or your last date of attendance) and when your first full payment will be due on your loan

9 months 9 months 9 months Not applicable
Overall loan cost Results in the highest total loan cost. Results in a small reduction to your total loan cost.

Results in a larger reduction to your total loan cost.

Results in the lowest total loan cost.

 

* Not available to residents of AL, AZ, CA, FL, MA, MD, MI, ND, NY, OH, PA, and WA. 

 

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