Deferring Student Loans
Studies show that the majority of students graduating from college have some form of student loan debt on their shoulders. This can be either due to federal loans or loans taken from private financial organizations or even a combination of the two. In all cases, you've agreed to a certain payment plan, and you've to start paying back the loan when you graduate. Most of the loan programs also grant you a grace period, six to nine months, for finding a job and arranging funds for paying back your loan. However, life is quite unpredictable, and you may have difficulty finding a job or may undergo sudden drastic events that drain your financial resources. In such a scenario, you can opt for deferment of student loans. Deferring student loans is a great option in case you need time to get your affairs in order and arrange for funds for loan payment.
Eligibility for Deferring Student Loans:
You're eligible for getting approval to defer student loans if the following or similar situations are applicable to you:
- You're facing an economic hardship, or you haven't found a job yet.
- You're again back at school with your enrollment status at least half time.
- You've joined the military or are volunteering for Peace Corps.
- You're working as a teacher at a public school imparting elementary or secondary education in a low-income area.
Important Points about Deferring Student Loans: Remember that there are more chances of
deferred student loans in case of federal loans as compared to private loans. Moreover, in some circumstances such as teaching in low-income areas, your federal loan may actually be forgiven partly or completely. So, keep yourself updated about the rules and regulations of federal financial aid so that you're able to take advantages of such benefits and also avoid defaulting.
Another thing you need to consider while gathering information about
how to defer student loans is that on some loans, specially unsubsidized federal loans and private loans, interest may accrue during the deferment period. In such situations, the best approach is to pay the interest amount even during the deferment period to avoid too much increase in the size of your loan amount.