Repayment begins 60 days after the check is issued. Interest rates are variable but capped at nine percent. The rate for 2000-2001 is 8.99 percent. A four percent origination fee is deducted at the bank each semester before funds are disbursed. Families must reapply each year for this loan.
Many reputable companies have special programs for families of college students.
Options on these loans vary according to who can borrow, how much may be borrowed, repayment terms, interest rates, other fees and monthly payments. In many cases, the student can be the borrower of these private deferred payment loans, but a co-signer is required. Such programs offer competitive rates and tax benefits not available using other options. Variable life insurance policies can often be accessed by borrowing against the accumulated cash value of the policy.