They have added a reinvestment option, where your interest accrues interest.

I have the cash in my account to pay it back so I don’t accrue interest on it unnecessarily.

All accrued interest will be paid on the back end at refi.

Even with all the research and knowledge build up that I've accrued over the past year I am lacking the real life experience and is why I'm looking to pick an investors brain and truly prepare for my first deal. 

The unpaid Principal Amount of this Note shall earn interest calculated on the basis of a 360-day year for the actual number of days of each year (365 or 366), from and including the date the proceeds of this Note are disbursed to, but not including, the date all amounts hereunder are paid in full, at a rate per year which shall be: fixed at __________%.If no rate is specified above, interest shall accrue at the Maximum Legal Rate (defined below).Maximum Legal Rate.

At your election, any interest accrued, will be sent to you by the end of each calendar year.

You could defer student loans but that would just allow more interest to accrue.

Note maturity date: One year or before, after close of escrow as a balloon payment, with accrued interest.2nd position Deed of Trust terms: 2nd position Deed of Trust is divided as follows:A)30% of the 2nd position Deed of Trust is to be recorded with the county recorder, by escrow at the close of escrow, in favor of Seller as beneficiary.

Should the note purchaser eventually get the property back, property tax liens, certain IRS liens, and legal fees will still have to be paid and will be accruing during the period of note ownership5.  

With all the interest I will have accrued, my total balance will probably come to $20k.