10 Private Student Loan Vocabulary Words to Know

A private student loan lender can be a financial institution like a bank or credit union.


Some lenders offer student loans specifically for parents or other adults to take out on behalf of the student.

Parent Loans

Your rate will stay the same for the life of your loan, and you’ll know exactly how much your payment will be each month.

Fixed Interest Rates

Many private loans have the option to defer payments until graduation, but interest on the loan will still accrue.


Some loans require payments while you’re in school. These may be small amounts or interest-only payments.

In-school Repayment

A grace period is a period of time after graduation (or leaving school or dropping below half-time enrollment) before you have to begin making payments.

Grace Period

Some lenders offer benefits for borrowers. This may include an interest-rate reduction if you commit to making automatic payments, cash rewards for good grades, and others.


Some lenders charge fees, including application fees or late fees. It’s good to compare fees and benefits across lenders.


College Planning Calendar

Stay on track as you navigate each step of the college planning process.