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When Do I Choose a Repayment Option?

When you apply for a student loan, you'll be asked to choose a repayment option. It's important to review the benefits of each option to determine which is best for you, because your choice will remain in effect throughout repayment, and will determine whether you'll receive a bill in the mail in a few weeks or not until after you graduate.

Terms to Know

Principal: The dollar amount of a loan that's initially borrowed. It's also the amount on which interest is charged. For example, if you borrow a $10,000 loan (assuming you're charged no fees), your principal amount will be $10,000.

Interest: The fee charged by a bank or lender to borrow money, charged as a percentage of the principal borrowed.

Important Information to Consider When Choosing a Repayment Option

  • Paying toward your loan while in school, even making small payments that aren't required, will reduce the total amount you'll pay back over time. You can always prepay your PNC Solution Loan™ without penalty.
  • Any interest that isn't paid each quarter will capitalize, or be added to, the loan at repayment, and you'll end up paying interest on interest and principal. It's the snowball effect.

Repayment Options Available for the PNC Solution Loan

Full Deferral
Choosing this option means you'll have no payments due on your Solution Loan while enrolled in school for up to five consecutive years. PNC Solution Loans have grace periods of 6 months before repayment begins, so you'll start paying toward principal and interest 6 months after graduation or if your enrollment drops below half time as determined by your school. While your loan is in deferment, interest will continue to accrue and will be capitalized at the time of repayment. Though payments are not required while enrolled in school, you can make voluntary payments during this time to save money over the life of the loan.

Interest Only
Making interest-only payments means that you'll pay only the accrued interest on your loan each month while you're enrolled in school, up to four consecutive years. Full repayment of principal and interest begins 45 days after you graduate or your enrollment drops below half time. With this option there is no grace period before repayment, as you begin making payments within 45 days after your loan funds are sent to your school. Entering immediate repayment will yield the highest level of savings on interest costs.

Immediate Repayment
With this option, you'll begin paying toward the loan's principal and interest immediately after the loan is fully disbursed. The first payment will be due within 45 days after the loan funds are sent to your school. There is no grace period before repayment when choosing this option. Choosing immediate repayment will result in paying less over the life of the loan.

PNC Solution Loans are subject to credit approval.

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Create Your Own Strategy

Whether you're planning to borrow or preparing for repayment, we offer tools to help you create strategies that work best for you.

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You are encouraged to explore all scholarship, grant and federal borrowing options before applying for a private loan.

PNC does not provide accounting, tax or legal advice.