Top 10 Student Loan Options For 2025: Find The Best Fit For Your Education?

Pursuing higher education can be an expensive endeavor, but student loans offer a reliable solution to bridge the financial gap. In 2025, numerous lenders are offering competitive loans with favorable terms. To help you make an informed decision, we have compiled a list of the top 10 student loan options available this year.

1. Federal Direct Subsidized Loans

A Federal Direct Subsidized Loan is a type of student loan available to undergraduate students who demonstrate financial need. The key feature of this loan is that the U.S. Department of Education pays the interest while the student is in school, during the grace period (the first 6 months after leaving school), and during deferment periods. This helps reduce the total amount of debt the student must repay.

Key Features of Federal Direct Subsidized Loans:

• Eligibility: Available to undergraduate students who are enrolled at least half-time and demonstrate financial need.
• Interest: The U.S. Department of Education pays the interest while the student is in school and during deferment.
• Loan Limits: The amount you can borrow depends on your grade level and dependency status (whether you are considered dependent or independent).
• Repayment: Loans typically have a 6-month grace period after graduation or dropping below half-time enrollment before repayment begins.
• Interest Rate: The interest rate for subsidized loans is set annually by the federal government. As of 2023, the rate for undergraduate students is 5.50%. This can change each academic year.
• Loan Forgiveness: In some cases, loan forgiveness programs are available (such as Public Service Loan Forgiveness for eligible jobs).

Loan Limits

The amount you can borrow varies depending on your grade level and whether you are a dependent or independent student. Here is a breakdown of the loan limits:

Grade Level	Dependent Students	Independent Students	Maximum Subsidized Loan Amount (Annual)
First-Year Undergraduate	$3,500	$3,500	$3,500
Second-Year Undergraduate	$4,500	$4,500	$4,500
Third-Year and Beyond	$5,500	$5,500	$5,500

For total loan limits across the entire program:

Total Subsidized Loan Limits (Lifetime)	Dependent Students	Independent Students
Total (All Years)	$23,000	$23,000

Example of a Federal Direct Subsidized Loan:

Let’s say a first-year undergraduate student receives a Federal Direct Subsidized Loan of $3,500. If they attend school for 4 years and borrow the maximum amount each year, the total loan amount at graduation would be $14,000.

• In-School Period: The student is enrolled full-time. The government covers the interest on the loan.
• Grace Period: After graduation, the student has 6 months before repayment begins. Again, the government continues to cover the interest during this time.
• Repayment Period: After the grace period, the student begins repaying the loan. The loan is paid back over a period of 10 years, typically with fixed monthly payments.

Loan Repayment Example:

If the student repaid the $14,000 loan over 10 years with an interest rate of 5.50%, their monthly payment might be around $150 (this is just an estimate).

Summary:

• Subsidized Loans help students reduce the financial burden by covering the interest while they’re in school and during the grace period.
• Loan limits depend on the student’s grade level and dependency status.
• Repayment begins after a 6-month grace period following graduation or dropping below half-time enrollment.

Let me know if you need further details or examples on the loan’s repayment process or interest!

2. Federal Direct Unsubsidized Loans

A Federal Direct Unsubsidized Loan is a type of federal student loan available to both undergraduate and graduate students. Unlike the Subsidized Loan, the Unsubsidized Loan is not based on financial need, meaning that all eligible students, regardless of their income, can qualify. However, the key difference is that the borrower is responsible for paying the interest on the loan from the moment it is disbursed, including while the student is still in school, during the grace period, and during any deferment periods.

Key Features of Federal Direct Unsubsidized Loans:

• Eligibility: Available to both undergraduate and graduate students. Financial need is not required for eligibility.
• Interest: The borrower is responsible for all interest on the loan, which starts accruing as soon as the loan is disbursed. If the borrower does not pay the interest while in school, it will be capitalized (added to the principal balance) when the borrower enters repayment.
• Loan Limits: The amount you can borrow depends on your grade level (for undergraduates) or enrollment status (for graduates).
• Repayment: Payments typically begin after a 6-month grace period following graduation, dropping below half-time enrollment, or leaving school.
• Interest Rate: The interest rate is fixed, but it differs based on the student’s status (undergraduate or graduate) and the loan’s disbursement year.
• Loan Forgiveness: As with subsidized loans, some federal loan forgiveness programs may be available if the borrower qualifies for certain public service jobs.

Loan Limits for Direct Unsubsidized Loans

The amount you can borrow through a Direct Unsubsidized Loan depends on your academic level, dependency status, and the type of loan (undergraduate or graduate). Below is a breakdown of the annual loan limits for both dependent and independent students:

Undergraduate Loan Limits

Grade Level	Dependent Students	Independent Students	Annual Maximum Unsubsidized Loan Amount
First-Year Undergraduate	$5,500	$9,500	$5,500 (Subsidized) + $0–$4,000 (Unsubsidized)
Second-Year Undergraduate	$6,500	$10,500	$6,500 (Subsidized) + $0–$4,000 (Unsubsidized)
Third-Year and Beyond	$7,500	$12,500	$7,500 (Subsidized) + $0–$5,000 (Unsubsidized)

Graduate/Professional Student Loan Limits

Graduate students are eligible for higher loan amounts, but they are only eligible for Unsubsidized Loans (no Subsidized Loan eligibility).

Student Type	Annual Maximum Unsubsidized Loan Amount
Graduate Students	$20,500
Professional Students	$20,500

Total Loan Limits (Lifetime)

Lifetime Loan Limits	Dependent Students	Independent Students
Undergraduate Loans	$31,000 (No more than $23,000 in Subsidized Loans)	$57,500 (No more than $23,000 in Subsidized Loans)
Graduate Loans	N/A	$138,500 (No more than $65,500 in Subsidized Loans)

Example of a Federal Direct Unsubsidized Loan:

Suppose you are an undergraduate student in your second year, and you are eligible for the maximum amount of Federal Direct Unsubsidized Loans. As a dependent student, you can borrow:

• $6,500 in total for the year ($6,500 is the total limit for a second-year student, which would typically include subsidized loans as well).

Let’s say you borrow the maximum $6,500, and the interest rate is 5.50%.

• In-School Period: The loan begins accruing interest immediately. If you do not pay the interest while in school, it will accumulate and be added to your loan balance when you begin repayment.
• Grace Period: After graduation or dropping below half-time enrollment, you have a 6-month grace period, but interest continues to accrue during this time.
• Repayment: Once the grace period ends, your loan will have accrued interest. If you didn’t pay that interest while in school, it will be added to the principal balance, and you will now pay interest on the new, higher balance.

For instance, if the interest accrued during school is $500, you will owe $7,000 (original principal + interest) when repayment begins.

Loan Repayment Example:

If you borrowed $6,500 and the interest accrued during school is $500, your new loan balance would be $7,000. Your monthly repayment could be around $70–$80 per month, depending on the loan terms.

Interest Rates for Federal Direct Unsubsidized Loans:

The interest rate is fixed and varies depending on when the loan is disbursed:

• Undergraduate Loans (for 2023-2024): 5.50%
• Graduate Loans (for 2023-2024): 7.05%

Summary:

• Unsubsidized Loans are available to both undergraduate and graduate students, regardless of financial need.
• Borrowers are responsible for all interest on the loan, which starts accruing as soon as the loan is disbursed.
• Loan limits depend on the student’s grade level, dependency status, and enrollment status.
• Repayment begins after a 6-month grace period following graduation or dropping below half-time enrollment.

3. Parent PLUS Loans

A Parent PLUS Loan is a federal loan that parents of dependent undergraduate students can use to help pay for their child’s education. Unlike the Federal Direct Subsidized and Unsubsidized Loans, which are borrowed by the student, Parent PLUS Loans are borrowed by the parent. The parent is responsible for repaying the loan, and the loan is not based on financial need, although the borrower must pass a basic credit check.

Key Features of Parent PLUS Loans:

• Eligibility: Available to biological or adoptive parents (and in some cases, stepparents) of dependent undergraduate students. The student must be enrolled at least half-time at an eligible school.
• Credit Check: A credit check is required. If the parent has an adverse credit history (for example, recent bankruptcy or defaulted loans), they may be denied. However, there are options for parents who are denied, such as appealing the decision or using a creditworthy endorser (co-signer).
• Loan Amounts: Parents can borrow up to the cost of attendance (COA) minus any other financial assistance the student receives (such as other loans, grants, or scholarships).
• Interest Rate: The interest rate for Parent PLUS Loans is fixed, but it may vary each academic year. For the 2023-2024 academic year, the interest rate is 8.05%.
• Repayment: Repayment typically begins immediately after the loan is disbursed. However, parents can choose to defer payments while the student is in school and during a 6-month grace period after the student graduates or drops below half-time enrollment.
• Loan Forgiveness: Parent PLUS Loans are not eligible for Public Service Loan Forgiveness (PSLF), but they may be eligible for other types of forgiveness through income-driven repayment plans under certain conditions.

Loan Limits for Parent PLUS Loans:

There are no fixed loan limits for Parent PLUS Loans, except that parents can borrow up to the full cost of attendance (COA) minus any other financial aid the student receives. The COA includes tuition, fees, room and board, books, supplies, and other education-related expenses.

For example:

• If the COA for the student is $25,000 and the student receives $10,000 in other aid (such as scholarships or grants), the parent could borrow up to $15,000 through a Parent PLUS Loan.

Repayment of Parent PLUS Loans:

Repayment of a Parent PLUS Loan usually begins immediately after the loan is disbursed. However, parents have the option to defer payments while the student is enrolled in school and for 6 months after graduation or when the student drops below half-time enrollment.

• Immediate Repayment: The parent can begin repaying the loan immediately after the loan is disbursed.
• Deferment: If the parent chooses to defer payments, interest will continue to accrue during the deferment period, and it will be capitalized (added to the loan principal) when repayment begins.

Parent PLUS Loan Interest Rates:

The interest rate for Parent PLUS Loans is set by the federal government and is fixed. The interest rate for the 2023-2024 academic year is:

• 8.05% (fixed for the entire loan term)

Loan Fees:

In addition to the interest rate, there is a loan fee for Parent PLUS Loans, which is a percentage of the loan amount. For the 2023-2024 academic year, the fee is 4.228% of the loan amount.

• Example Fee Calculation: If a parent borrows $10,000, the fee would be approximately $422.80 ($10,000 × 0.04228).

Example of a Parent PLUS Loan:

Let’s assume a parent borrows $20,000 through a Parent PLUS Loan to cover their child’s educational expenses.

• Interest Rate: 8.05%
• Loan Fee: 4.228%
• Loan Amount: $20,000

1. The loan fee would be:
   $20,000 × 0.04228 = $845.60
   This means the parent would receive $19,154.40 after the fee is deducted.
2. If the parent repays the loan with interest at 8.05% over a 10-year period, their monthly payment would be roughly $242.75 (this is an estimate).
3. Over the life of the loan, the parent will pay more than the original loan amount because of the interest.

Loan Forgiveness Options:

While Parent PLUS Loans are generally not eligible for Public Service Loan Forgiveness (PSLF), there are other repayment and forgiveness options:

• Income-Contingent Repayment (ICR) Plan: Parents who take out Parent PLUS Loans after July 1, 2006, can consolidate the loan into a Direct Consolidation Loan and apply for an income-contingent repayment plan (ICR), which bases payments on income and family size.
• Loan Forgiveness Programs: If the parent works in certain public service jobs, they may qualify for other types of loan forgiveness programs.

Summary of Parent PLUS Loans:

• Borrower: The parent of a dependent undergraduate student.
• Eligibility: Parent must pass a credit check; the student must be enrolled at least half-time.
• Loan Amount: Borrow up to the cost of attendance minus other financial aid.
• Interest Rate (2023-2024): 8.05% fixed.
• Loan Fees: 4.228% fee on the loan amount.
• Repayment: Payments can be deferred until after the student graduates, but interest will accrue during deferment.
• Loan Forgiveness: Not eligible for PSLF, but may be eligible for other forgiveness or repayment programs.

4. Sallie Mae Student Loans

• Best For: Undergraduate and graduate students.
• Interest Rate: Fixed or variable rates.
• Repayment Terms: Multiple repayment options.
• Key Benefit: Offers non-traditional loan options like medical and dental school loans.

Here is a summary table for Sallie Mae Student Loans that outlines the key features, loan amounts, interest rates, and repayment options:

Feature	Details
Eligibility	U.S. citizens or permanent residents, enrolled at least half-time in an eligible degree-granting program, credit check required, cosigner may be needed.
Loan Types	– Undergraduate Loans – Graduate Loans – Parent Loans – MBA & Law School Loans – Career Training Loans
Loan Amounts	Up to the full cost of attendance minus any other financial aid (scholarships, grants, etc.).
Interest Rates	Fixed Rate: 5.74% – 13.87% Variable Rate: 4.37% – 13.87% (depends on creditworthiness)
Repayment Terms	– 5 to 15 years depending on loan type and amount – Payments can be deferred until after graduation or made immediately after disbursement.
Repayment Options	– Deferred Payments (while in school) – Fixed Payments (interest-only payments) – Full Payments (pay both principal and interest)
Grace Period	6 months after graduation or dropping below half-time enrollment before repayment begins (unless in immediate repayment plan).
Loan Fees	No origination fees. Some fees may apply for late payments or returned checks.
Cosigner Release	Available after meeting credit and payment history criteria (typically after 12-24 consecutive on-time payments).
Refinancing & Consolidation	Sallie Mae offers refinancing options to consolidate both private and federal student loans.
Loan Forgiveness	No eligibility for Public Service Loan Forgiveness (PSLF) or other federal forgiveness programs.
Credit Check	Required for approval. Parents may need to cosign for students with limited or no credit history.

This table gives a concise overview of the key aspects of Sallie Mae Student Loans. If you’d like further clarification on any of these points, feel free to ask!

5. Discover Student Loans

• Best For: Students seeking cashback rewards.
• Interest Rate: Fixed and variable rates.
• Repayment Terms: Flexible, with in-school and deferred options.
• Key Benefit: 1% cashback reward on good grades.

Key Features of Discover Student Loans:

Feature	Details
Eligibility	– U.S. citizens or permanent residents enrolled at least half-time in an eligible degree-granting program.
	– Requires a credit check, and a cosigner may be needed if the student has little or no credit history.
Loan Types	– Undergraduate Loans – Graduate Loans – Health Professional Loans – MBA Loans – Law School Loans – Career Training Loans
Loan Amounts	Up to 100% of the cost of attendance, including tuition, fees, room and board, and other related expenses.
Interest Rates	Fixed Rates: 5.99% – 11.99% Variable Rates: 4.37% – 11.99% (rates depend on creditworthiness and loan terms)
Repayment Terms	– 5 to 20 years depending on loan type and amount. – Payments can be deferred until after graduation or immediately upon loan disbursement.
Repayment Options	– Deferred Payments (while in school) – Fixed Payments (interest-only or full payments while in school) – Immediate Repayment
Grace Period	6 months after graduation or dropping below half-time enrollment before repayment begins (unless immediate repayment plan is selected).
Loan Fees	No origination fees, prepayment fees, or late payment fees (late fees apply if a payment is missed).
Cosigner Release	Available after 12 consecutive on-time payments and meeting creditworthiness requirements (typically after 12-24 months).
Loan Forgiveness	Not eligible for Public Service Loan Forgiveness (PSLF) or other federal forgiveness programs.
Credit Check	Required for approval. A cosigner may be needed if the student has little or no credit history.
Auto-Debit Discount	Discover offers a 0.25% interest rate discount for enrolling in automatic payments.

6. College Ave Student Loans

• Best For: Undergraduate, graduate, and parent borrowers.
• Interest Rate: Competitive rates.
• Repayment Terms: 5 to 15 years.
• Key Benefit: Customizable loan terms to suit your needs.

Types of College Ave Student Loans:

1. Undergraduate Loans:
   • For students pursuing a bachelor’s degree at an accredited school.
   • Covers costs like tuition, books, room, and board.
2. Graduate Loans:
   • For students pursuing a graduate degree in fields such as education, engineering, or science.
   • Loans can be used for tuition and other related expenses.
3. MBA Loans:
   • For students pursuing a Master of Business Administration (MBA) degree.
   • Helps cover the costs of tuition, books, and other expenses.
4. Law School Loans:
   • For students attending law school.
   • Covers education-related costs such as tuition and fees.
5. Medical School Loans:
   • For students attending medical school or other health professional programs.
   • Helps cover high costs of medical education.
6. Parent Loans:
   • For parents who want to borrow to help their child pay for school.
   • Offers repayment flexibility and covers the total cost of attendance.

Example of a College Ave Student Loan:

Let’s assume a student needs $25,000 to cover their educational expenses for the year and is approved for a fixed-rate loan at 6.99% for a 10-year repayment period.

• Loan Amount: $25,000
• Interest Rate: 6.99% (fixed)
• Loan Term: 10 years
• Monthly Payment Estimate: Around $285 per month (estimate).
• Total Repayment: Approximately $34,200 (principal + interest).

7. Earnest Private Student Loans

• Best For: Students with strong credit or a co-signer.
• Interest Rate: Low fixed and variable rates.
• Repayment Terms: Flexible, with biweekly payment options.
• Key Benefit: Offers a nine-month grace period.

Example of an Earnest Private Student Loan:

Let’s assume a student needs $20,000 to cover their educational expenses for the year and is approved for a fixed-rate loan at 6.50% for a 10-year repayment period.

• Loan Amount: $20,000
• Interest Rate: 6.50% (fixed)
• Loan Term: 10 years
• Monthly Payment Estimate: Approximately $230 per month.
• Total Repayment: Approximately $27,600 (principal + interest).

Repayment Options for Earnest Private Student Loans:

1. Deferred Payments:
   • Payments are deferred until after graduation or when the student drops below half-time enrollment. Interest will accrue during this period, and if left unpaid, it will be added to the principal balance.
2. Interest-Only Payments:
   • The borrower can choose to make interest-only payments while in school. This helps reduce the total loan balance when repayment begins, as no principal is added to the balance during school.
3. Immediate Repayment:
   • Payments on both principal and interest begin immediately after the loan is disbursed. This option minimizes the amount of interest that accrues over the life of the loan.

Earnest Private Student Loan Interest Rates:

Interest rates for Earnest student loans are typically divided into two categories (fixed and variable):

Loan Type	Interest Rate Range (Fixed)	Interest Rate Range (Variable)
Undergraduate Loans	5.25% – 12.99%	3.24% – 11.99%
Graduate Loans	5.25% – 12.99%	3.24% – 11.99%
Parent Loans	5.25% – 12.99%	3.24% – 11.99%

Advantages of Earnest Private Student Loans:

• No origination fees or prepayment fees.
• Flexible repayment options, including deferred payments, interest-only payments, and immediate payments.
• Customizable loan terms: You can choose loan terms (from 5 to 20 years) that best fit your budget.
• Auto-debit discount: Get a 0.25% interest rate reduction when you enroll in automatic payments.
• Cosigner release available after 12 consecutive on-time payments.
• Competitive interest rates, especially for students with good credit.

Disadvantages of Earnest Private Student Loans:

• Higher interest rates than federal loans, especially for students with poor or no credit.
• No federal protections like income-driven repayment or Public Service Loan Forgiveness (PSLF).
• Credit-based approval, meaning that students with limited credit history may need a cosigner.
• No loan forgiveness options (such as PSLF or Teacher Loan Forgiveness).

Summary:

Earnest offers private student loans with competitive interest rates, customizable repayment options, and no origination fees. They provide flexibility in choosing loan terms, repayment options, and the ability to adjust the loan term after disbursement. However, since these are private loans, they come with no federal protections and require a credit check for approval. Students with less-than-perfect credit may need a cosigner, but there is an option for cosigner release after making 12 consecutive on-time payments.

8. Citizens Bank Student Loans

• Best For: Students seeking multi-year approval.
• Interest Rate: Competitive rates.
• Repayment Terms: 5, 10, or 15 years.
• Key Benefit: Offers multi-year approval with one application.

Repayment Options for Citizens Bank Student Loans:

1. Deferred Payments:
   • Payments are deferred while the student is in school or until they drop below half-time enrollment. Interest will continue to accrue during this time, and if unpaid, it will be added to the loan principal when repayment begins.
2. Interest-Only Payments:
   • Borrowers can choose to make interest-only payments while they are in school, which reduces the amount of principal added to the loan when repayment starts.
3. Immediate Repayment:
   • Payments on both principal and interest begin immediately after the loan is disbursed. This option minimizes the amount of interest that accrues over the life of the loan.

Citizens Bank Student Loan Interest Rates:

Interest rates for Citizens Bank student loans are broken down into two categories:

Loan Type	Interest Rate Range (Fixed)	Interest Rate Range (Variable)
Undergraduate Loans	6.94% – 12.74%	5.24% – 12.74%
Graduate Loans	6.94% – 12.74%	5.24% – 12.74%
MBA Loans	6.94% – 12.74%	5.24% – 12.74%
Law School Loans	6.94% – 12.74%	5.24% – 12.74%
Medical School Loans	6.94% – 12.74%	5.24% – 12.74%
Parent Loans	6.94% – 12.74%	5.24% – 12.74%

9. SoFi Student Loans

• Best For: Graduate students and parents.
• Interest Rate: Fixed and variable rates.
• Repayment Terms: Flexible with no fees.
• Key Benefit: Career coaching and financial planning services.

oFi Student Loan Interest Rates:

Interest rates for SoFi student loans are broken down into fixed and variable categories:

Loan Type	Interest Rate Range (Fixed)	Interest Rate Range (Variable)
Undergraduate Loans	4.23% – 12.99%	3.49% – 12.99%
Graduate Loans	4.23% – 12.99%	3.49% – 12.99%
MBA Loans	4.23% – 12.99%	3.49% – 12.99%
Law School Loans	4.23% – 12.99%	3.49% – 12.99%
Medical School Loans	4.23% – 12.99%	3.49% – 12.99%
Parent Loans	4.23% – 12.99%	3.49% – 12.99%

Advantages of SoFi Student Loans:

• No origination fees or prepayment penalties.
• Flexible repayment options including deferred payments, interest-only payments, and immediate payments.
• Auto-debit discount: 0.25% interest rate reduction for enrolling in automatic payments.
• Cosigner release available after 12 on-time payments.
• Competitive interest rates for both fixed and variable loans.
• Unique benefits like career coaching and financial planning for borrowers.

10. LendKey Student Loans

• Best For: Borrowers seeking loans from credit unions and community banks.
• Interest Rate: Competitive rates.
• Repayment Terms: Various options.
• Key Benefit: Personalized customer service and support.

LendKey Student Loan Interest Rates:

Interest rates for LendKey student loans are divided into fixed and variable categories:

Loan Type	Interest Rate Range (Fixed)	Interest Rate Range (Variable)
Undergraduate Loans	5.27% – 12.62%	4.42% – 11.77%
Graduate Loans	5.27% – 12.62%	4.42% – 11.77%
Parent Loans	5.27% – 12.62%	4.42% – 11.77%

Advantages of LendKey Student Loans:

• No origination fees or prepayment penalties.
• Flexible repayment options: Borrowers can choose deferred, interest-only, or immediate repayment.
• Competitive interest rates: LendKey offers some of the best interest rates available, especially for borrowers with good credit.
• Cosigner release: Available after 24 consecutive on-time payments.
• Auto-debit discount: 0.25% interest rate reduction for enrolling in automatic payments.
• Offers student loan refinancing options for borrowers looking to consolidate loans and potentially reduce their rates.

Conclusion:

LendKey offers competitive private student loan options, partnering with credit unions and community banks to provide flexible repayment terms and potentially lower interest rates compared to traditional private lenders. With a variety of loan types, including undergraduate loans, graduate loans, parent loans, and student loan refinancing, LendKey provides valuable financial support for students and parents looking to fund their education.

FAQs:

1. What is LendKey?

• LendKey is a platform that connects borrowers with private student loans offered by participating credit unions and community banks. It helps students and parents find competitive interest rates and flexible repayment options.

2. What types of loans does LendKey offer?

• LendKey offers loans for undergraduate students, graduate students, parent loans, and student loan refinancing.

3. Are LendKey student loans federal loans?

• No, LendKey offers private student loans, which means they do not have the same protections and benefits as federal student loans, such as income-driven repayment or loan forgiveness options.

4. What are the interest rates on LendKey student loans?

• Interest rates for LendKey student loans range from:
  • Fixed rates: 5.27% – 12.62%
  • Variable rates: 4.42% – 11.77%
• Rates depend on the loan type, your creditworthiness, and whether you choose a fixed or variable rate.

5. Is a cosigner required for LendKey loans?

• A cosigner may be required for students with limited or no credit history. Having a cosigner can also help you secure better interest rates.

6. How long do I have to make payments before I can release my cosigner?

• Cosigner release is available after making 24 consecutive on-time payments and meeting creditworthiness requirements.

7. What are the repayment options for LendKey student loans?

• LendKey offers three main repayment options:
  1. Deferred Payments: Payments are deferred while in school, and interest will continue to accrue.
  2. Interest-Only Payments: Borrowers can make payments only on the interest while in school, reducing the overall loan balance once repayment begins.