Allows maximum savings over the life of the loan. Pay principal and interest in a fixed monthly amount beginning within 45 days after funds are disbursed. Allows you the convenience of delaying repayment. Make no payments while in school for up to four consecutive years. Repayment of principal and interest begins six months after graduation or withdrawal from school.
Interest is capitalized once at repayment.
Guarantee Fee A guarantee fee of 5 percent will be added and financed with the loan amount at disbursement with Option 1 or 2, and a 6.5 percent guarantee fee will be added and financed with Option 2. Monthly Payments Monthly payments on Option 1 remain fixed throughout the life of the loan. Monthly payments of principal and interest on Option 2 will be fixed when the loan goes into repayment and will then remain fixed for the remaining years of the loan. If principal or principal and interest is deferred, the monthly payment amount will increase if the interest rate increases, and will be computed based on the interest rate applicable at the time repayment begins. Any increase in the interest rate during repayment will be reflected in an increase in the number of payments, not in the monthly payment amount, unless an increase in the monthly amount is needed to keep repayment within the 25-year program maximum.