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What Are the Most Important Private Student Loan Terms

Private student loan terms and conditions vary by lender. However, there are some terms and conditions that tend to be pretty similar from lender to lender.

  • The interest rate on a private student loan is determined by the credit of the borrower and cosigner (if needed), among other factors.
  • The loan funds are sent directly to the school.
  • Repayment typically begins six months after leaving school, but interest may begin to accrue immediately after the loan is disbursed.
  • The amount borrowed usually determines the time period for repaying the loan.

Failure to meet the terms and conditions of the loan you chose may damage the credit of both the borrower and cosigner.