Under the GRP, the borrower only has to pay accrued interest for the first 12 months of repayment.This means that recent graduates have 18 months before being required to pay toward the principal.Like with many repayment programs, this can lead to higher payments later and a more expensive total loan amount, but it helps consumers get on their feet after graduation.This is particularly important for those who struggle to find work.Sallie Mae also offers reduced monthly payments, extended repayment schedules and, likely, some less-advertised hardship programs.In their letter to the CFPB, they also state that they are in favor of rehabilitation programs for private loans that can help borrowers recover from default.
Most importantly, we’ve also added new guidelines presented by the Consumer Financial Protection Bureau.
We will analyze six of the top student loan servicers and give tips for how to pay off private student loans.
Note about the updates: Since we first wrote this post, more information about the top private lenders and their repayment programs has become publicly available.
One of the most successful programs Sallie Mae offers, this program offers lower interest rates, as low as 1 percent, and sometimes includes a modification of the loan term.
To qualify, borrowers must first make three consecutive on-time monthly payments at the reduced rate.