Have you accumulated student loan debt but you’re not in the financial position to start repayment? There are options you can think about.
Among the most popular repayment choices is called deferment. A deferment is a period of time in which the repayment of your student loan debt (interest and principal ) is temporarily postponed. Deferments are great if you are still in college, returning to college or temporarily jobless.
As you won’t need to make any payments toward the principal amount in a deferment, the government may actually pay part or all of your interest payments if you have a subsidized loan. For unsubsidized loan debtors, interest continues to accrue and you’ll be responsible for that interest following your deferment ends.
Here are some eligibility standards you’ll need for loan deferment (note: this advice only applies to guide unsubsidized and subsidized loans):
- You are registered at least half-time enrollment in college.
- You’re studying in an approved graduate fellowship program.
- You are unemployed or cannot work fulltime (maximum of three year period).
- You’re going through a period of financial hardship (for example, service in the Peace Corps).
- You are on active-duty army service during a war or national emergency.
The easiest way to receive a deferment would be to be enrolled half-time in college. However, be financially responsible — do not take on more loan to postpone paying your present loan debt.
If you’re able to attend courses without even taking out student loans, then using a loan deferment as you progress through your education is a fantastic idea. Furthermore, be certain to discuss your financial situation with financial aid advisors at your school, as well as with your loan servicer.