What the Graduated Repayment Period means for you
The Graduated Repayment Period lets you make interest-only payments for one year after your separation or grace period ends. It’s available for students with a Smart Option Student Loan who have graduated from a degree-granting institution. You have to request it during a certain time and meet all of the qualifications.
Your billing statements will have a message saying when you can apply for the Graduated Repayment Period. The billing statements will also show which of your loans qualify for the benefit.
- Your 12 interest-only payments will be lower than your principal and interest payments would be otherwise, so it may help you with your budget when you’re establishing yourself in your career.
- It’s not automatic. You need to request to enroll in the Graduated Repayment Period within a specific time period—from two months before the end of your separation or grace period to two months after you begin principal and interest payments.
- Your payments following the Graduated Repayment Period will be higher than if you hadn’t participated in it. Your Total Loan Cost will be higher as well.
- The Graduated Repayment Period is available for loans disbursed on or after July 1, 2013.