What are the important repayment terms I need to know?

Your repayment terms are important because they outline your responsibility as a borrower and ensure clarity about the financial commitments you’re making. Let’s walk through them together.

This is the “principal” of your loan or payment plan - the amount that you’re borrowing. It includes the tuition for your program, and it may include other fees that are charged, such as an origination fee.

Interest is usually the largest additional cost that you will pay on top of your initial borrowing amount. To read more about how interest is calculated, please click here.

Other fees associated with your financing plan might include application fees paid directly to Fortify, origination fees, late payment penalties, returned check charges, or other charges that are specified in your agreement and final disclosures. Origination fees will be included in your total borrowing amount at the beginning of your financing plan, but other fees may be assessed separately.

Your repayment period defines how long your repayment period will last, and how frequently you’ll need to make payments. This period typically starts right after you sign your financing plan or start attending school - whichever comes later.

If you sign a loan, when your repayment period starts, your loan will be “disbursed”, meaning that it will start to accumulate interest on your outstanding balance. Your first payment is due approximately 30 days after your repayment period starts.

Your payments will usually be made monthly, and your repayment period will last for a predefined number of months, which you can find in your agreement and final disclosure. The length of your repayment period influences your monthly payment. IF a loan that accumulates interest has a longer repayment, you might pay less each month, but the total amount that you pay by the end of your loan will usually be higher, because interest has been accumulating for longer.

If you sign a loan with Fortify, when your repayment period begins, your loan will start to accumulate interest. By starting to make payments as soon as possible, it helps prevent interest from building up and becoming difficult to manage. Reducing your balance early means that less interest will build up over time. Interest can significantly increase your overall debt, making it more challenging to pay off loans in the long term.

Understanding these terms is important for evaluating any financing plan and planning for your future. By familiarizing yourself with the amount you're borrowing, your repayment period, monthly payment, interest rates, and total APR, you can make an informed decision regarding your educational investment.

If you have any questions, please reach out to Fortify and we’ll be happy to help to the best of our ability.