Interest repayment option
Pay your interest every month you’re in school and in grace. Your undergraduate student loan interest rate will typically be 1 percentage point lower than with the deferred repayment option. Freshman students may save
23%footnote 3 on their total loan cost by choosing the interest repayment option instead of the deferred repayment option.
Your undergraduate student loan payments will likely be larger while you’re in school and in grace, but your total student loan cost will likely be lower than with the other repayment options.