You begin to pay principal and interest in a fixed monthly amount within 45 days after funds are disbursed. You pay only interest while you're enrolled in school for up to four consecutive years. Your payments of principal and interest begin within 45 days after you graduate or withdraw from school. You make no payments while in school for up to four consecutive years. Your payments of principal and interest begin within 45 days after you graduate or withdraw from school.
Interest is capitalized once at repayment.
The interest rate is variable, based on the Prime Rate as published in the Wall Street Journal . The amount shown here is the payment that will be made during the deferment term if the student elects to defer principal and make interest-only payments. The monthly interest payment will increase if the interest rate increases. Interest-only payments during deferment do not reduce the principal balance of the loan. After deferment, full principal and interest payments begin and continue throughout the life of the loan.