We offer two deferment options, or options to delay repayment of Loan to Learn® Personal Education Loans until after graduation, because many students want them. As a lender, we earn more money when a borrower chooses to defer payment on the loan, yet for most students, we recommend against loan deferment. Why? Because the more you defer, the more you pay. And at Loan to Learn we want to help you make choices that are in your best interest over the long term. To that end, here is a review of your repayment options with us:
Total Deferment (available but not a recommended option). Total deferment allows you not to make payments on the loan until after your graduation or if you have dropped below half-time attendance.
Partial Deferment (better in the long run than total deferment). With this option you pay only the interest on your student loan while in school. This prevents your loan balance from growing during your college years due to the compounding of unpaid interest.
No Deferment (not always possible, but financially the best option). The student who can afford to do so pays his or her monthly student loan payment while in school, leaving a lower loan balance to be repaid after graduation.
Our advice: Delay the start of student loan repayment only if you need to. If you must defer, try to at least build monthly interest payments into your plans.