Full Time Students: Interest payments during the deferment period depend on the type of loan you choose:
- Interest-only type loans: They require the payment of interest on a monthly basis during the deferment period. These payments ensure that no interest will be capitalized into your borrowed principal at the beginning of the 36- or 60-month full repayment phase. Interest-only payment amounts depend on the amount borrowed and the term of the loan. For a $10,000, 60-month loan, for example, these payments equal $90/mo.
- Deferred-type loans: These loans require zero ($0) payments during the deferment period. But the simple interest generated every month accrues, and is capitalized into your loan principal at the end of this period. This translates into slightly higher monthly payments vs. interest-only loans. For example, for a $10,000 60-month loan, a deferred-type loan will repay about $10/mo. more over its life than an interest-only type loan.