The Monticello Student Loan - Photo

Repayment Options

Choose the repayment option that works best for you.

Undergraduates may choose one of the following three repayment options:

Option 1 — Immediate Loan Repayment

Start paying right away to save the most money. This is the "Immediate Repayment" option and it allows for the maximum savings over the life of the loan. You start paying principal and student loan interest approximately 45 days after funds are disbursed. Payment amounts change annually based on interest rate fluctuations.

Option 2 — Interest-Only Monthly Payments

Another option is to reduce your debt by making interest payments while you’re still in school. This is the “Interest-Only Repayment” option. Defer principal and pay only interest on your student loan while you stay enrolled in school at least half time for up to four years (five years if you are enrolled in a five-year degree program). Interest payments begin approximately 45 days after disbursement of your loan (45 days after you get your check). You start repayment of principal and interest approximately 45 days after you graduate or cease to be enrolled at least half time. Your student loan payment amount will change annually based on interest rate fluctuations.

Option 3 — Deferred Payment

Delay repayment on your student loan up to a maximum of five years. This is the "Deferred Principal and Interest Repayment" option. You make no payments while you stay enrolled in school at least half time for up to four years (five years if you are enrolled in a five-year degree program). You’ll start repayment of your principal and interest after approximately 180 days (six months) from the time you either graduate or cease to be enrolled at least half time. Interest is capitalized at repayment and quarterly prior to repayment (that means all the interest that’s accrued gets added to the principal loan amount). Payment amount will change annually based on interest rate fluctuations.

Save more with automated payments.

By having your monthly payment transferred automatically from your checking or savings account, you can save 0.25% on your interest rate. Upon request, you can save an additional 0.25% on your interest rate – for a total savings of 0.50% – as long as your first 36 payments are paid on time, and you sign up for automated payments before your 36th payment.1



  1. The 0.25% interest rate reduction is available for borrowers who elect to have monthly principal and interest payments transferred electronically from a savings or checking account. The interest rate reduction will begin when automatic principal and interest payments start, and will remain in effect as long as automatic payments continue without interruption. This reduced interest rate will return to contract rate if automatic payments are cancelled, rejected or returned for any reason. Upon request, borrowers are also entitled to an additional 0.25% interest rate reduction if (1) the first 36 payments of principal and interest are paid on time, and (2) at any time prior to the 36th on-time payment, the borrower who receives the monthly bill elects to have monthly principal and interest payments transferred electronically from a savings or checking account, and continues to make such automatic payments through the 36th payment. The reduced interest rate will not be returned to contract rate if, after receiving the benefit, the borrower discontinues automatic electronic payment.