If you’re facing repayment on your private student loans, you may need to know about monthly payment options; especially if your budget is tight. Or if you’re shopping for an in-school loan and want to understand the types of repayment plans lenders offer, we have the insights to help you.
Private student loan repayment options
There are six primary repayment options available when it comes to private student loans. These include:
- Immediate repayment (full principal and interest)
- Interest only
- Partial payments
- Deferred repayment
- Graduated repayment
- Student loan refinancing
Depending on where you are in your student loan journey (i.e. still in school vs. in repayment) you will have different repayment options to choose from. For example, interest only payments are common while you’re still in school, but may not be available from most lenders during the repayment period unless you are approved for some type of hardship deferment. And it’s also important to note that not all lenders offer multiple repayment plans.
Federal vs. Private Student Loan Repayment Options
While this article focuses on private student loan repayment options, it’s worth mentioning there is a difference between federal and private loan plans. If you have federal student loans, you may be eligible for a number of repayment plans that take your income into consideration, or that allow you to extend your repayment term based on your loan balance.
Making payments on student loans while in school
Private student loan lenders give you the option (ok, strongly encourage you) to make payments while in school. Unlike a subsidized federal loan where payments are automatically deferred and the interest is paid by the government, private loans are not automatically deferred and interest is charged throughout the life of the loan. This includes the moment the loan is disbursed, as well as the entire time you’re in school, during the grace period, and during repayment. But lenders realize that most students are not in a situation to take on repayment while they’re in school. So they give you a number of options up front.
Immediate Repayment
Immediate repayment means you would start repaying both the principal and interest on your loan every month while you’re in school. It basically means you just enter repayment right away. The benefit to this, assuming you can afford this option, is you’d end up paying your loan off much faster and would save a considerable amount of money in interest fees over the life of the loan.
Interest Only Payments
A common choice among students, interest only payments mean you just pay the amount of interest that accrues on your loan every month. You would not be making a dent on your principal balance, but this option does mean you would avoid unpaid interest from being added on top of your outstanding principal balance. If that were to happen, your starting loan amount in repayment would be higher, and you’d essentially be paying interest on top of interest.
Flat Payment (or partial payments)
Lenders may offer to schedule a low, fixed monthly payment while you are in school. Some lenders may even talk about a partial payment. Whatever the name, know this. Any payment that is less than a regular monthly payment of principal and interest is not going to reduce the actual loan balance. It will simply help you stay up-to-date with the interest that continues to accumulate. And it can certainly help you avoid having too much interest added (capitalized) on top of your outstanding principal balance at the start of repayment, thereby increasing the overall cost of the loan. But even if your lender does not place you on a partial payment plan or flat payment plan, you can elect to send money whenever you are able. You may want to consider doing so if you come into extra cash throughout the year, such as a tax refund or birthday or holiday cash.
Deferred Repayment
If you are unable to make any payments while in school, no worries. You will be given the option of simply postponing payments altogether. Your lender would place your loan(s) in a deferred status and bill you for regular monthly payments after you graduate and complete your grace period. Make sure you read the terms and conditions with this option. Your lender could have certain conditions you must meet (i.e., at least half-time enrollment) in order to maintain your loan deferment.
Private Student Loan Repayment After Graduation
Depending on the repayment option you choose, the repayment of your private student loans typically begins after graduation and following a grace period, usually 6 months. Your lender will most often place your loans on a standard repayment plan to put you on a path of fully repaying your loan within 10 years, sometimes longer depending on your balance.
Some lenders offer modified repayment terms. But you usually must request this in writing. Here are some common examples:
Graduated Repayment
Lenders like Sallie Mae offer a Graduated Repayment Period that lets you pay a lower monthly payment for a year. The amount of the payment usually equals the interest. You can request this after your graduation or grace period ends. The benefit here is you’d be allowed time to get your bearings after you finish school, which may include landing a job, possibly relocating, and earning a regular salary while juggling other obligations. After the year is over, you would begin making payments of principal and interest.
Refinance My Student Loans
Since repayment plans and loan terms vary by lender, and since interest rates change over time, you may want to consider refinancing your student loans. This can be a very effective way to manage your repayment by restructuring your loans. Refinancing allows you to combine multiple loans together (including both federal and private student loans), or you can refinance a single loan. Reasons you may want to consider refinancing as part of your repayment strategy include:
- Qualifying for a lower interest rate – You could save money in the long run by paying less interest on your loan, potentially thousands of dollars.
- Reducing your monthly payment – By extending your repayment term, you could lower your monthly payment amount. Depending on your outstanding balance (and in some cases your career field), you may be able to extend your term to 25 years. And there are no prepayment penalties, so you can always accelerate your repayment later in order shave time—and money—off the clock.
- Releasing a cosigner – Thank God for mom or dad, or some other equally saintly person who helped you pay for your higher education! But it is doubtful they want to be on the hook as a cosigner for the rest of their lives. Refinancing results of paying off your underlying loan(s) that may have been cosigned. And once that happens, your cosigner is basically released from their obligations. But know this. 1) You will need to qualify for the refinance on your own merit. This is a credit-based loan. 2) There are some lenders that also offer parent loan refinancing where the parent’s loan can be transferred to the student.
Compare Top Refinance Lenders
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Earnest Student Loan Refinancing
New-fashioned loans for the next generation.
Earnest is a technology company using cutting-edge data science, smarter design, and software automation to rebuild financial services.
With a mission to empower people with the financial capital they need to live better lives, Earnest's lending products are built for a new generation seeking to reach life's milestones. The company uses data and technology to understand every applicant's unique financial story and offer the lowest possible rates.
To qualify, you must be a U.S. Citizen, possess a Permanent Resident Card (10-year non-conditional or 2-year conditional), be a Deferred Action for Childhood Arrivals (DACA) Recipient, be an Asylee, or hold an H-1B visa with a U.S. Citizen cosigner, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 3.96% APR to 10.24% APR (3.71% – 9.99% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.24% APR (5.88% – 9.99% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, MS, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and requires selection of our shortest term offered and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
*Auto Pay Discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance. Not all borrowers will qualify for our lowest rates, and your rate will be based on creditworthiness at time of application.
Earnest Loan Cost Example: These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable annual percentage rate ("APR"): A $10,000 loan with a 20-year term (240 monthly payments of $101.46) and a 10.74% APR would result in a total estimated payment amount of $24,350.40. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $101.46) and a 10.74% APR would result in a total estimated payment amount of $24,350.40. Your actual repayment terms may vary.
The information provided on this page is updated as of 03/02/2026. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.
Earnest Loans are made by Earnest Operations LLC. Earnest Operations LLC, NMLS #1204917. 300 Frank H. Ogawa Plaza, Suite 340, Oakland 94612. California Financing Law License 6054788. Visit www.earnest.com/licenses for a full list of licensed states. For California residents: Loans will be arranged or made pursuant to a California Financing Law License.
Earnest loans are serviced by Earnest Operations LLC with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770). Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2026 Earnest LLC. All rights reserved.
THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
- Choose your own monthly payment
- No fees of any kind and exceptional customer service for the life of your loan
- Check your rates in minutes
To qualify, you must be a U.S. Citizen, possess a Permanent Resident Card (10-year non-conditional or 2-year conditional), be a Deferred Action for Childhood Arrivals (DACA) Recipient, be an Asylee, or hold an H-1B visa with a U.S. Citizen cosigner, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 3.96% APR to 10.24% APR (3.71% – 9.99% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.24% APR (5.88% – 9.99% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, MS, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and requires selection of our shortest term offered and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
*Auto Pay Discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance. Not all borrowers will qualify for our lowest rates, and your rate will be based on creditworthiness at time of application.
Earnest Loan Cost Example: These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable annual percentage rate ("APR"): A $10,000 loan with a 20-year term (240 monthly payments of $101.46) and a 10.74% APR would result in a total estimated payment amount of $24,350.40. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $101.46) and a 10.74% APR would result in a total estimated payment amount of $24,350.40. Your actual repayment terms may vary.
The information provided on this page is updated as of 03/02/2026. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.
Earnest Loans are made by Earnest Operations LLC. Earnest Operations LLC, NMLS #1204917. 300 Frank H. Ogawa Plaza, Suite 340, Oakland 94612. California Financing Law License 6054788. Visit www.earnest.com/licenses for a full list of licensed states. For California residents: Loans will be arranged or made pursuant to a California Financing Law License.
Earnest loans are serviced by Earnest Operations LLC with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770). Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2026 Earnest LLC. All rights reserved.
THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
- Actual prequalified rates from multiple lenders in 3 minutes.
- Checking rates on Credible is free and will not impact your credit score.
- Refinance federal, private and ParentPLUS loans.
- You could lower your interest rate or reduce your monthly payment.
- Refinance $5,000 up to the full balance
Student Loan Refinancing Rate and Terms Disclosure:
The lenders on the Credible.com platform offer fixed rates ranging from 3.99% - 10.15% (3.99% - 10.15% APR). Variable interest rates offered by the lenders on Credible.com range from 3.67% - 11.11% (3.67% - 11.11% APR). Variable rates will fluctuate over the term of the borrower's loan with changes in the Index rate. The Index will be either LIBOR, SOFR, or the Prime Rate of interest as published in the Wall Street Journal (WSJ). The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy cosigners, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include loyalty and Automatic Payment discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements.
The information provided on this page is updated as of 03/02/2026.
- Actual prequalified rates from multiple lenders in 3 minutes.
- Checking rates on Credible is free and will not impact your credit score.
- You could lower your interest rate or reduce your monthly payment.
Student Loan Refinancing Rate and Terms Disclosure:
The lenders on the Credible.com platform offer fixed rates ranging from 3.99% - 10.15% (3.99% - 10.15% APR). Variable interest rates offered by the lenders on Credible.com range from 3.67% - 11.11% (3.67% - 11.11% APR). Variable rates will fluctuate over the term of the borrower's loan with changes in the Index rate. The Index will be either LIBOR, SOFR, or the Prime Rate of interest as published in the Wall Street Journal (WSJ). The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy cosigners, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include loyalty and Automatic Payment discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements.
The information provided on this page is updated as of 03/02/2026.
ELFI Student Loan Refinance
ELFI is a nationwide student loan debt consolidation and refinancing program offered by Tennessee based SouthEast Bank. Offering among the lowest rates in the industry coupled with award winning customer service, it is designed to assist borrowers through consolidating and refinancing education loans to lower your cost of education and/or makes repayment very simple.
ELFI – backed by the strength of SouthEast Bank – combines the benefits of traditional education loan financing with the superior products, service, and support found in the private market.
1Average savings calculations are based on information provided by SouthEast Bank/ ELFI customers who refinanced their student loans between 01/03/23 and 03/01/23. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon a number of factors.
2Rates accurate as of 10/01/25. The interest rate and monthly payment for variable rate loans may increase after closing. Your actual interest rate may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10 year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. To qualify for refinancing or student loan consolidation through ELFI, you must have at least $10,000 in qualified student loan debt and must have earned a bachelor’s degree or higher from an approved post-secondary ELFI institution. ELFI Parent Loans are limited to a maximum of the 10-year term.
- Our customers have reported that they are saving an average of $278 every month or will see an average of $20,774 in total savings after refinancing their student loans with ELFI.1
- Prequalify in as little as two minutes
1Average savings calculations are based on information provided by SouthEast Bank/ ELFI customers who refinanced their student loans between 01/03/23 and 03/01/23. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon a number of factors.
2Rates accurate as of 10/01/25. The interest rate and monthly payment for variable rate loans may increase after closing. Your actual interest rate may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10 year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. To qualify for refinancing or student loan consolidation through ELFI, you must have at least $10,000 in qualified student loan debt and must have earned a bachelor’s degree or higher from an approved post-secondary ELFI institution. ELFI Parent Loans are limited to a maximum of the 10-year term.
College Ave Student Loans Refi was created to help graduates refinance existing student loans so they can repay their loans easily while reducing the total cost and/or monthly payment.
- No application or origination fees
- Variable rate range: 6.99% – 13.99% APR1
- Fixed rate range: 6.99% – 13.99% APR1
- Choose how long you take to repay the loan
Eligibility
- You (and your cosigner, if applicable) must be a U.S. Citizen or permanent resident.
- Must have graduated from a public or private, not-for-profit, degree granting institution
- Consolidate and refinance up to $300,0003
- All loans are subject to individual approval and adherence to underwriting guidelines.
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a refi borrower who selects the Full Principal & Interest Repayment Option with a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3$5,000 is the minimum requirement to refinance. The maximum loan amount is $250,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.
Information advertised valid as of 01/05/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
College Ave Student Loans
- Variable rate range: 6.99% – 13.99% APR1
- Fixed rate range: 6.99% – 13.99% APR1
- No application or prepayment fees
- Apply in 3 minutes or less for instant credit decision
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a refi borrower who selects the Full Principal & Interest Repayment Option with a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3$5,000 is the minimum requirement to refinance. The maximum loan amount is $250,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.
Information advertised valid as of 01/05/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Private Student Loans Income Based Repayment
Unfortunately, there really aren’t any income-based repayment plans for private student loans. These exist under the federal student loan program, but they are not generally available for private loans. However, if you are having challenges in repaying your loan, it’s best to contact your lender to explain your situation and explore options such as those explained above or in the next section.
Private Student Loan Deferment
If you encounter a hardship, private student loan deferment may be an option. This means you can ask your lender for a temporary postponement of payments where monthly obligations could be waived for a short period of time, such as 3 or 6 months. Some lenders may offer a forbearance, but it’s practically the same thing. Regardless of the lender calls it, a deferment or forbearance gives you time to get back on your feet. Some lenders may still require that you make interest payments each month, others may allow you to postpone both interest and principal. If you’re not in a position to pay the interest during this time, it will be added to your principal balance at the end of the deferment resulting in not only a higher balance, but often a higher monthly payment.
Can I Deduct Private Student Loan Interest?
Yes, you may be able to deduct the amount you paid on private student loan interest on your tax returns. Most private student loans are eligible for the student loan interest deduction, which allows you to deduct up to $2,500 in interest on federal and private student loans each year on your tax filings. Of course, this is subject to income limits.
Other Ways to Save Money on Student Loans
Most lenders offer auto-debit discounts, such as a 0.25% or 0.50% interest rate if you agree to have your monthly payments automatically deducted from a bank account. You’ll want to sign up for this service at the start of repayment, if possible, to take advantage of what could be sizeable savings over time.
Private Student Loan Relief
During the COVID-19 pandemic, most lenders chose to help borrowers with some form of private student loan relief. What this means is they offer a temporary forbearance (sometimes called an emergency forbearance or hardship deferment) to give you a break on your regular student loan payments. This does not mean lenders are waiving interest or automatically postponing payments as part of the CARES Act, the way the federal government has done on federal student loan loans owned by the U.S. Department of Education (ED).
For those impacted by COVID-19, private student loan lenders began offering temporary relief—anywhere from 30 days to 12 months—from regularly scheduled monthly payments. Because this is discretionary, policies and programs will vary by lender. If you are still having difficulty making your private student loan payments due to impacts from COVID, you should contact your lender.
Learn more tips strategies for paying off private student loans.
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