Each Private Loan Has Unique Options

When your private loans enter repayment, they will automatically be placed into a Standard Repayment Plan. This is the fastest way to repay your loans and you’ll pay less over time than with other options.*

Check out the information on this page to learn about some common repayment options for private loans.

We service a variety of private student loan programs — with different loan agreements, originated by various lenders. Some repayment programs are described in your loan agreement. Not all options are available to all borrowers. Loan type, terms and conditions in the loan agreement, lender’s current policy and procedure, and the borrower’s and cosigner’s financial circumstances may all be factors in determining options available. Additional options may also be available at the lender’s discretion.

Please call us at 888-272-5543 to see which options are available for your private student loan.

Need a New Private Student Loan?

If you’re looking for a new private student loan, visit Earnest for a free rate check and a simple application, where you can get a fast decision as well as customized payments.

Repayment Options for Private Student Loans

Standard Repayment Plan Interest-Only Repayment Program Extended Term Repayment Rate Reduction Program Deferment Forbearance Cosigner Release Loan Forgiveness and Discharge

Standard Repayment Plan

Description:

This plan has a repayment schedule with fixed Monthly Payment Amounts of principal and interest that will be due for the contractual repayment term.

Consequences:

• This is the fastest way to repay your loans and you’ll pay less over time than other options.*

How to Apply:

• Not applicable – your loans will automatically be placed into a Standard Repayment Plan.

Interest-Only Repayment Program

Description:

• Reduces the Monthly Payment Amount to as low as the amount of interest that accrues each month.
• May be combined with the Extended Term Program.
• Interest-only payments are typically offered in six-month increments.
• Depending on eligibility, longer term interest-only periods may be available.
• Program time is limited.
• Your Monthly Payment Amount increases after the program period ends and the Standard Repayment Plan resumes.
• Your estimated loan payoff date may be extended by the length of your Interest-Only Repayment program, depending on program eligibility. If your loan payoff date is not extended, you may experience a larger Monthly Payment Amount increase when your loans return to a Standard Repayment Plan.
• Forbearance may be used in connection with the program to bring delinquent loans current.

Consequences:

• Your total loan cost will typically be greater over time than the Standard Repayment Plan.*
• You may be required to demonstrate your intent to repay your loan by making one or more payments prior to approval.
• Use of the Interest-Only Repayment Program may delay eligibility for cosigner release.
• Accruing interest during forbearance continues to remain your responsibility on private loans. Unpaid Interest may be capitalized (added to the Unpaid Principal), as often as quarterly during the forbearance and again at the end of the forbearance. Capitalization may increase your Monthly Payment Amount and total loan cost. See the Forbearance section for more important information.

How to Apply:

• Call us at 888-272-5543.

Extended Term Repayment

Description:

• Term extension that may be combined with Standard Repayment, Interest-Only Repayment, or Rate Reduction Programs.
• Reduces the principal and interest payment by extending the loan repayment terms.
• Repayment term extended up to 30 years*, depending on outstanding balance.
• Typically results in lower Monthly Payments made over a longer repayment period.
• Forbearance may be used in connection with the program to bring delinquent loans current.

Consequences:

• Your total loan cost will typically be greater over time than the Standard Repayment Plan.*
• Longer time to pay off loans.
• You may be required to demonstrate your intent to repay your loan by making one or more payments prior to approval.
• Accruing interest during forbearance continues to remain your responsibility on private loans. Unpaid Interest may be capitalized (added to the Unpaid Principal), as often as quarterly during the forbearance and again at the end of the forbearance. Capitalization may increase your Monthly Payment Amount and total loan cost. See the Forbearance section for more important information.

How to Apply:

• Call us at 888-272-5543.

Rate Reduction Program

Description:

• Program for borrowers experiencing difficulty but who can afford to pay a reduced amount.
• A reduced interest rate is provided for a six-month period, which also reduces the Monthly Payment Amount.
• May be combined with the Extended Term Program.
• Eligibility is dependent on the borrower’s and cosigner’s financial information.
• Proof of income may be required.
• Available program time is limited.
• Your contractual interest rate will eventually resume at the end of the Rate Reduction Program. Monthly Payment Amount increases after the program period ends.
• Forbearance may be used in connection with the program to bring delinquent loans current.

Consequences:

• Your total loan cost will typically be greater over time than the Standard Repayment Plan.*
• Three qualifying payments may be required prior to entering into the program.
• Accruing interest during forbearance continues to remain your responsibility on private loans. Unpaid Interest may be capitalized (added to the Unpaid Principal), as often as quarterly during the forbearance and again at the end of the forbearance. Capitalization may increase your Monthly Payment Amount and total loan cost. See the Forbearance section for more important information.
• Loans may be removed from the program in certain conditions, including entry into a deferment or forbearance status, graduated repayment program, or delinquency.
• Any Auto Pay interest rate reduction cannot be combined with the Rate Reduction Program.

How to Apply:

• Call us at 888-272-5543

Deferment

Description:

• Temporarily reduces or postpones Monthly Payments.
• Deferment options are limited on private loans and differ from federal loan deferment. Eligibility requirements and deferment length vary by loan program, your loan agreement, type of deferment, and lender discretion. Examples of private loan deferment types include in-school, military service, internship, residency, or fellowship program deferment.
• You have the option of making a payment at any time during the deferment period. You may also shorten or cancel your deferment and return to making Monthly Payments.

Consequences:

• You should consider your current and longer-term situation, the likelihood of any changes, and whether a reduced repayment option, if available, is a better option for you than deferment.
• Unlike federal loans, all accruing interest during deferment continues to remain your responsibility on private loans. Unpaid Interest may be capitalized (added to the Unpaid Principal), as often as quarterly during the deferment and again at the end of the deferment. Capitalization may increase your Monthly Payment Amount and total loan cost.
• Use of deferment may cause the loss of borrower benefits – such as repayment incentives that can lower your interest rate.
• The Auto Pay interest rate reduction (if eligible) will be suspended during periods of deferment when no payments are due.
• Deferment may also delay eligibility for cosigner release.

How to Apply:

• Complete a deferment request form and return it to us.
• Supporting documentation may be required.

Forbearance

Description:

• Temporarily postpones or reduces Monthly Payments.
• Forbearance options are limited on private loans and differ from federal loan forbearance.
• Available forbearance time is also often limited and varies by forbearance type.
• Eligibility may be dependent upon the borrower’s and cosigner’s financial information.
• You have the option of making a payment at any time during the forbearance period. You may also shorten or cancel your forbearance and return to making Monthly Payments.

Consequences:

• You should consider your current and longer-term situation, the likelihood of any changes, and whether a reduced repayment option, if available, is a better choice for you than forbearance.
• All accruing interest during forbearance continues to remain your responsibility on private loans. Unpaid Interest may be capitalized (added to the Unpaid Principal), as often as quarterly during the forbearance and again at the end of the forbearance. Capitalization may increase your Monthly Payment Amount and total loan cost.
• Use of forbearance may cause the loss of borrower benefits – such as repayment incentives that can lower your interest rate.
• The Auto Pay interest rate reduction (if eligible) will be suspended during periods of forbearance when no payments are due.
• Forbearance may also delay eligibility for cosigner release.
• You may be required to demonstrate your intent to repay your loan by making one or more payments prior to approval of a forbearance.

How to Apply:

• Call us at 888-272-5543.

Cosigner Release

Many private student loans were granted because a creditworthy cosigner also agreed to repay the loan.

It's a good idea to talk about repayment options with your cosigner since eligibility may be based on both parties' financial circumstances. Additionally, the loan may appear on the cosigner's credit report.

Description:

The terms and conditions of private student loans provide for the potential release of a cosigner. This is contingent on the satisfaction of certain criteria and submission of a completed Application to Request Release of Cosigner(s) from Private Education Loans form which is available for download.

Please note, only the primary borrower can apply. Additionally, approval is at the discretion of Navient and our evaluation of a borrower’s credit history and ability to repay before granting cosigner release.

The borrower must satisfy these qualifications for cosigner release eligibility:

• Loans must be current and cannot have been more than 15 days past due during the previous 12 months.
• The borrower must have made 12 consecutive on-time principal and interest payments (or an amount equal thereto) prior to applying.

1. Check your payment history to determine whether you’ve met the consecutive on-time payment requirement.
2. Payments that are interest-only or less than a payment amount under a Standard (Level) or Extended Repayment plan do not count toward cosigner release eligibility, this includes rate reduction programs, forbearance and In-School Deferment (unless you’re making level principal and interest payments). If you would like to resume a Standard Repayment plan, please call us.
3. Payments must be made by the borrower. Payments made by the borrower’s employer, cosigner, or other third party do not count towards cosigner release eligibility.

• Must be a U.S. citizen or permanent resident and meet the age of majority in their state. U.S. Citizenship/Immigration status may be considered solely for purposes of determining the creditor's rights and remedies.
• Must satisfy a credit history check, as evaluated by Navient.
• Must provide income verification and demonstrate an ability to repay the loan, as evaluated by Navient. Acceptable proof of income includes:

1. current year W-2 or 1099-MISC,
2. copy of a paystub issued within the last 60 days,
3. SSI/disability award letters issued within the current calendar year,
4. current year statement of retirement income or annuities, or
5. most recent Federal tax return.

• Must provide proof of graduation or successful completion of a course of study – documentation of a degree, diploma, or certificate from the school and/or program that the loan was used to finance.

NOTE: College Ave refinance loans and National Education Servicing (NES) loans are not eligible for cosigner release.

Consequences:

• If your cosigner is released, you, the primary borrower, will be solely responsible for your loan.

How to Apply:

• Download and complete an Application to Request Release of Cosigner(s) from Private Education Loans and return it to us.
• Supporting documentation is required.
• If you have any questions about our cosigner release process, call us at 888-272-5543.

Loan Forgiveness and Discharge

Description:

• We work with borrowers and families in the event of disability, loss of life, school misconduct, and certain other circumstances.
• You will no longer be required to repay all or part of your outstanding loan balance if you are eligible for forgiveness or discharge.
• Eligibility requirements and limitations on the amount of the loan balance available to be forgiven vary.
• If you have a Total and Permanent Disability (TPD), you may qualify for a TPD discharge of certain private student loans.
• Private loans are eligible for discharge due to death of the primary borrower.

Consequences:

• You should consult your tax advisor concerning the income tax consequences of any loan forgiveness or discharge.

How to Apply:

• Loan forgiveness and discharge options are limited on private loans and differ from federal loans. Please call us to discuss eligibility for forgiveness or discharge options for private loans.
• Complete a forgiveness or discharge application and return it to us.
• Supporting documentation is required.

* Assumes continuous, on-time payments are made in the amounts and on the dates disclosed in your payment schedule.