Last week we touched on the partial interest repayment option for private student loans. This week we are going to touch on the full deferment repayment option.

The full deferment repayment option is the most common repayment plan for students. Under this student loan repayment plan you don’t have to make any student loan payments while you’re in school. Also, many lenders offer a six month grace period after graduation if you select this plan.

During the six month grace period you aren’t required to make any student loan payments. It’s important to take note that interest will accrue during the deferment period so when your loans enter repayment your loan balance will be higher than the initial borrowed amount.

Of the four private student loan repayment options we have touched on this is the most expensive in terms of total amount students have to repay. Most lenders will allow you to make extra payments while you’re in school, even though you aren’t required to pay anything. If you select this payment method and are able to make some non-required payments you will save money on interest once your loans go into full repayment.