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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 approved for a private student loan. You may not be eligible for all options due to the credit profile of your application and state limitations.  

  • 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 the 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. 

 

Having difficulty making payments?

If you're unable to make your payments, there may be options available to you. Some of the following options may have eligibility standards and documentation may need to be provided. 

Skip-a-payment

Unexpected life events can affect your budget, so we offer you the ability to skip one payment every 12 months. Your first request to skip a payment can be made once you've made at least 6 months of consecutive on-time payments, and your loan is in good standing. During your skipped payment, simple daily interest continues to accrue on your loan. You can start your request for a skip-a-payment here.

Forbearance

In certain situations, you may qualify for forbearance, a protection offered by Earnest for clients who are experiencing a documented and verifiable hardship. During forbearance, simple daily interest continues to accrue on your loan. More information on forbearance can be found here.

In grad school or enrolling in grad school?

If you’re going back to grad school at least half-time, you may be eligible for deferment, which postpones your Earnest loan payments for a period of time. During deferment, your loan will continue to accrue interest.

In a disability rehabilitation program?

You may have deferment options available to you. Please reach out to us if you would like more information.

In the military?

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

Loan forgiveness and discharge

In the unfortunate event of death or total and permanent disability, Earnest will discharge all private student loans.

Rate Reduction Program

The Rate Reduction Program is an alternative payment program for Earnest Student Loan Borrowers experiencing difficulty but who can afford to pay a reduced amount. The program provides a reduced interest rate for a 6-month period. As a result, the monthly payment amount is also temporarily reduced.

By making reduced payments for a period of time, your total loan cost may be higher compared to a standard repayment schedule. That’s because, during the program, your principal balance may be paid down at a slower rate compared to a standard repayment schedule.

Eligibility for the program is dependent upon your financial profile and becomes available at a high level of loan delinquency.

Term and Rate Modification Program

The Term and Rate Modification program combines an extended repayment term with the Rate Reduction Program. 

Eligibility for the program is dependent upon your financial profile and becomes available at a high level of loan delinquency.

We're here to assist and help find the option most suitable for you. Contact us by clicking "Get In Touch" found at the bottom of this article.

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