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, Health Professions Graduate Loan, MBA Loan, Medical School Loan and Dental School Loan but you will have to request it during a certain time and meet all of the qualifications.
Your billing statements and online account will include 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.
Benefits
- Your 12 interest-only payments will be lower than your principal and interest payments would be otherwise.
- This benefit provides budget flexibility when you are establishing yourself in your career.
Considerations
- It’s not automatic. You need to request to enroll in the Graduated Repayment Period within a specific time period—the six billing periods before and the 12 billing periods immediately 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 but your loan term will remain the same.
- When you request the Graduated Repayment Period, your loan must be current (not past due).
- The Graduated Repayment Period is available for loans disbursed on or after July 1, 2013.