During the academic deferment period, interest will accrue and any unpaid accrued interest will be added to your principal balance. Sixup offers the option for you to begin repaying your loan during your academic deferment period. The payment amount is $20 per month while you're in college (or attending school at least half-time), however, six months after graduation, your payment amount will increase.
How does this help?
- Making small on-time monthly payments will help you build a strong financial profile. Having a positive repayment history may improve your credit score. Your FICO score has an impact on your financial mobility when it comes to making decisions such as buying a car, renting an apartment and applying for credit cards.
- It helps reduce the balance of your loan you'll need to pay after your academic deferment period ends.
What to expect after the academic deferment period ends:
Academic deferment period ends typically six months after you leave school. You'll be making larger monthly payments to pay off your loan in a timely manner.
Those payments vary depending on the amount you borrowed, the length of time before the academic deferment period ends, and whether you have a fixed or variable interest rate.