a big part of borrowing money isthinking about how you'll pay it back. since everyone's situation is different,sallie mae's smart option student loan offers three repayment options. you can't change your repayment option ondisbursed loans, but you can prepay or make extra payments any time without penalty. first, let'slook at the interest repayment option. if you make interest payments while inschool and for the six months after known as the grace or separation, nounpaid interest will be added to your loan's principal amount after separation.
your monthly interest payment will depend on how much you borrowed, and those payments can prevent interest from adding up. freshman students who choose this optionand make monthly interest payments while in school and during the separation will save an average of twenty-five percent on their total loan costscompared to those who choose the deferred repayment option. then there'sthe fixed repayment option. with this option you pay just 25 dollars a monthwhile in school and for six months after. paying a portion of your interest isgood because it cuts down on what you'll owe. however, your unpaid interest will beadded to your principal amount after
separation. last, is our deferredrepayment option. deferred means there are no scheduledpayments until six months after you leave school. it's a flexible plan letting you pay asmuch as you'd like or nothing at all while you're in school. deferringpayments can be helpful now, but keep in mind you'll pay more for your loanoverall, because unpaid interest will be added to your principal amount afterseparation. you have a few options to consider. take a look at how they compare andchoose the one that's right for you.
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