One major potential benefit of Sixup is that it doesn’t charge any fees related to applying. They offer their applicant a less worrisome loan package by limiting the borrowers worry to only the interest.
In this regard, Sixup like most private student loan providers, offers two different types of interest rates: these are fixed and variable interest rates.
Fixed interest rates: just as it sounds, this interest rate always remain constant and offers the previlage to pay off your loan. Sixup offers fixed APRs ranging from 6.89% to 9.89% . Variable rates are a bit trickier — they can change while you pay off your loan. To protect borrowers from freak fluxes in the lending market, Sixup caps its variable APRs at 9.224%.
Variable interest rates
A variable interest rate is sometimes called an “adjustable” or a “floating” rate. Variable interest rate is an interest rate on a loan or security that fluctuates over time because it is based on an index interest rate that changes periodically. variable interest rates range from 6.24% APR to 9.07% APR.
Sixup repayment options
Sixup offers two options of repayment while your in school: Early nominal fixed payments and full deferment with a limited repayment time frame of five years for the both options.
Early nominal payments
Early nominal payment option offers students the opportunity to pay $20 a month while they’re in school and six months after they drop below half time. To boost the process, their financial responsibility and the student’s financial capability, Sixup reports these payments to a credit bureau, in other to help build up the student’s credit score before graduation. The brilliant credit score can lower the interest for the student which is called interest capitalization. And the moment your loan goes out of deferment or forbearance, lenders take the interest that added up while your payments were on hold and add it to your loan’s principal. Not only will you owe more after your interest is capitalized, you’ll also pay more in interest.
If the Early nominal payments option is not favorable, then you have the option of holding off on all payments until six months after graduation. This makes the lender to owe more than before but if you can’t come up with the funds, you risk hurting your credit.
It is imperative, you know that Sixup is flexible before the payment time but once your grace period is up. Each borrower has 10 years to pay off their loan and can’t apply for any more deferment or forbearance.