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What do the different repayment plans mean?
What do the different repayment plans mean?

The repayment plans depend on whether you're taking our a new student loan or refinancing an existing loan.

Sparrow Support avatar
Written by Sparrow Support
Updated over a week ago

The repayment plans depend on whether you're taking out a new student loan or refinancing an existing loan.

New Private Student Loans:

The lenders we partner with offer loans with several repayment plans for while you are enrolled in school (not all of these options are available for all loan products or from all partner lenders):

  1. Immediate: Full payments begin shortly after the loan is disbursed.

  2. Interest Only: Pay only the interest while you are in school.

  3. Flat / Fixed In-School: Make a fixed payment of both interest and principal, lower than a full payment, while you are in school.

  4. Fully Deferred: Payment is completely deferred until after you graduate, typically for a period of six months. But, interest starts accruing as soon as funds are disbursed.

Student Loan Refinance:

If you're refinancing your student loan (federal or private), you'll likely need to begin full payments shortly after the loan is disbursed. Look out for a note from your lender/servicer for more detailed information.

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