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What Are My Repayment Options and What if I Cannot Make a Payment? | Private Student Loans

This article provides options for those with a private student loan. If you are looking for your options on a Student Loan Refinance, check here

Repayment Options

These repayment options are offered once you are approved for a private student loan. However, depending on your application's credit profile, you may not be eligible for all options. 

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

Having Difficulties Making Payments?

If you're unable to make your payments, there may be options available to you. Please note that these options may require a review of your (and any cosigner’s) financial situation and ability to pay, have eligibility requirements, and require supporting documentation. It’s important to note, that if the primary account holder is unable to make payments, the responsibility for payments will fall to the cosigner.

If the options listed below do not meet your unique circumstance or you need additional support, there may be alternative repayment and relief options available to you through our MOHELA partners. To discuss personalized repayment options with their team, feel free to call them at 855-203-4596 Monday through Friday, 5 a.m. to 4 p.m. PT. While you decide which option is best for you, below are some things to keep in mind:

  • Your total loan cost will typically be greater over time than the standard repayment plan.
  • You may be required to demonstrate your intent to repay your loan by making one or more payments prior to approval.
  • Forbearance may be used in connection with the program to bring delinquent loans current.
  • Accruing interest during forbearance continues to remain your responsibility. Unpaid interest may be capitalized (added to the unpaid principal) as often as quarterly during the forbearance and again and the end of forbearance. Capitalization may increase your monthly payment amount and total loan cost.
  • Utilizing forbearance will not count against your maximum repayment term.

In School or Enrolling in Classes?

If you attend a Title-IV accredited, not-for-profit undergraduate or graduate school program at least half-time, you may be eligible for deferment. Depending on the repayment option you selected within your application, payments may be fully deferred or require monthly interest-only or $25 fixed payments during the deferment period, but the loan will continue to accrue interest. It’s important to note that we are only able to offer deferment if you are the primary borrower returning to school, not the cosigner. Check out this page for more information.

In the Military?

We offer military deferment and SCRA benefits to eligible service members. Check here for further information.

Short-Term Interest-Only 

This program will allow you to make a lower (interest-only) payment on your loan in 3-month increments, up to 24 months. Paying just the interest that accrues will prevent the post-program monthly or biweekly payment(s) from significantly rising by extending the term of your loan by the same number of months this program is utilized (up to 24 months). Making a payment, even a reduced one, is always the best long-term as interest continues to accrue. You can find more information on the Short-Term Interest-Only payment relief here. 

Skip-A-Payment

Unexpected life events can affect your budget, so we offer you the ability to skip one payment through a single, one-month forbearance during a 12-month period. Your first request to skip a payment can be made once you've made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. During Skip-A-Payment, simple daily interest continues to accrue on your loan. You can find more information on Skip-A-Payment here.

Forbearance

In certain situations, you may qualify for forbearance, a relief offered for clients who are experiencing temporary financial hardship. During forbearance, simple daily interest continues to accrue on your loan. More information on forbearance can be found here.

Loan Forgiveness and Discharge

In the unfortunate event of the primary borrower's death or total and permanent disability, Earnest will discharge all student loans. 

We're here to help you find the most suitable option. To contact us, click "Get In Touch" at the bottom of this article.

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