Compare the contract for the years ahead.

Evaluate repayment during school and afterward

Ask whether payments start immediately, cover only interest during school or are deferred. A deferred payment does not necessarily mean interest stops. Compare the projected balance when full repayment begins and the total expected payments, using the same school-year borrowing amount.

Review fixed and variable rates separately. For a variable offer, ask how the rate changes and request an illustration at a higher rate. Check hardship options, co-signer release criteria and any school or enrollment requirements in the lender's actual contract.

Other arrangements to compare

Federal student options

Review available federal borrowing and its current terms before deciding how to finance any remaining gap.

Annual school budget

Check whether the request can be reduced by a different living budget or additional non-loan support.

Installment schedule

Compare payment frequency, term and total cost rather than selecting the smallest first payment.

Documents and practical checks

• Prepare the school-year budget, other aid and the amount still needed.
• Ask whether a co-signer is required and which income and credit information both applicants must provide.
• Confirm school certification, disbursement timing and conditions before relying on funds for a deadline.

Is private student loan co-signer release automatic?

No. Ask for the lender's release criteria, required payment history, credit or income review and application process. Both borrowers should understand their obligations until a release is confirmed.

Does payment deferral during school mean no interest?

Not necessarily. Ask when interest starts, whether it must be paid during school and how unpaid interest affects the later balance. Compare projected repayment balances under each available payment option.

BorrowCompass provides a guide to this topic at private college loan shorter term vs longer term. Review current provider terms before making a borrowing decision. BorrowCompass does not issue loans or guarantee approval.