Variables to Consider Before Borrowing

  • The maximum amount that may be borrowed per academic year, as well as the maximum aggregate (lifetime) amount
  • The interest rate, and
    • whether the interest is deferred until after graduation
    • whether the interest, if not deferred, may be capitalized or is payable monthly, quarterly, or annually
    • whether the interest is capitalized quarterly, annually or only one-time at repayment
  • The grace period (period before any payment is expected)
  • The amount of the origination, guarantee, or insurance fee (the amount deducted from the loan at the time of the disbursement)
  • The supplemental fee (the amount added to principal immediately prior to repayment), which applies to private alternative loans only
  • The number of years allowed for repayment
  • The monthly repayment obligation
  • The deferment and forbearance terms available
  • The repayment incentives available